In accordance with Article 30 (8) of the EBA Regulation1 the EBA shall publish its peer review work plan for the coming two years. In case of urgency or unforeseen events, the EBA may decide to carry out additional peer reviews. Following a proposal from the EBA’s Management Board, the EBA’s Board of Supervisors has agreed the following peer review work plan for 2023-24.
A peer review on the effectiveness of supervision of the treatment of borrowers in arrears with regard to Article 28 of the Mortgage Credit Directive (MCD). This choice of topic reflects the interest rate evolution on mortgages which is likely to entail higher arrears rates and need for forbearance measures in line with the MCD and EBA guidelines.
A peer review to assess consistency of supervisory practices in relation to the application of EBA guidelines under Article 178 of the Capital Requirements Regulation which aim to harmonise the definition of default across the EU prudential framework and improve consistency in the way EU banks apply regulatory requirements to their capital positions.
A peer review to assess how competent authorities to apply the principle of proportionality in chapter 2.4 of the EBA’s guidelines on the supervisory review and evaluation process (SREP) under the Capital Requirements Directive. This takes into account the scope, frequency and intensity of supervisory engagement and dialogue with an institution, and supervisory expectations of the standards the institution should meet, in accordance with the category of the institution.