April 30, 2019

EBA published a report that presents its findings on the monitoring of supervisory colleges for the main cross-border European banking groups. The report also sets out the colleges' action plan for 2019. Considering the progress observed in the functioning of colleges over the years, the report mainly focuses on the quality of the colleges' deliverables and highlights examples of good practice.

The report provides key observations regarding the 2018 cycle of supervisory colleges. These observations cover organizational aspects of the colleges' work and interactions, colleges' deliverables, and the key topics for supervisory attention in 2018.  Seven key topics for supervisory attention had been identified for 2018 and these are non-performing loan cleaning, business model and profitability, information technology risk and operational resilience, internal governance, Brexit, structural changes, and IFRS 9. Overall, EBA identified a significant improvement in the colleges' deliverables, although further efforts are needed, particularly to ensure that the group risk/liquidity risk assessment reports form a real joint assessment of the group-wide risks.

The action plan of supervisory colleges for 2019 includes the key tasks for supervisory colleges, as defined by the legal framework; the key topics for supervisory attention; and the EBA approach for college monitoring in 2019. The list of key topics identified in the 2019 convergence plan includes internal governance, IT risk and operational resilience, non-performing exposures, and the use of benchmarking exercises for internal models. The key tasks for supervisory colleges in 2019 include the following:

  • Updating the mapping of cross-border group entities with all of the relevant information envisaged in the template of Annex I of the implementing standards on the operational functioning of colleges
  • Considering expanding the list of authorities with observer status in the light of the outcome of the EBA work on the equivalence assessment of the professional secrecy provisions of non-EU supervisory authorities, following the process envisaged in the Level-1 and Level-2 provisions
  • Organizing physical meetings and maintaining ongoing interaction in other forms (for example, conference calls, e-mails, and written consultations)
  • Adopting an annual college SEP, noting joint and individual supervisory activities, the resources committed from college members, and the timing and duration of these activities
  • Organizing and establishing timelines for the joint decision cycles envisaged by the Capital Requirements Directive (CRD) IV and the Bank Recovery and Resolution Directive (BRRD)
  • Developing and finalizing the group risk assessment and group liquidity risk assessment
  • Reaching joint decisions on capital and liquidity
  • Reaching a joint decision on the assessment of group recovery plans, measures to address impediments to these plans, and the need for individual recovery plans covering entities of the group
  • Organizing and concluding other joint decisions as required by the regulatory framework of CRD IV and the BRRD (for example, approving the use of internal models or the determination of a liquidity sub-group)

 

Related Links

Keywords: Europe, EU, Banking, Supervisory Colleges, Report, SREP, Operational Risk, EBA

Related Articles
News

IMF Releases Report on 2019 Article IV Consultation with United States

IMF published its staff report in the context of the 2019 Article IV consultation with the United States.

June 24, 2019 WebPage Regulatory News
News

BIS Report Discusses Regulatory Issues Related to Big Techs in Finance

BIS has pre-released a chapter of the BIS Annual Economic Report; this chapter focuses on the risks and opportunities presented by large technology firms in the financial services sector.

June 23, 2019 WebPage Regulatory News
News

IOSCO Report Examines Liquidity in Corporate Bond Markets

IOSCO published a report that examines the factors affecting liquidity, under stressed conditions, in the secondary corporate bond markets.

June 21, 2019 WebPage Regulatory News
News

FED Publishes Results of the 2019 Stress Tests for Banks

FED published a report presenting results of the Dodd-Frank Act Stress Test (DFAST) exercise for 2019.

June 21, 2019 WebPage Regulatory News
News

BCBS Report Examines Global Pillar 2 Supervisory Review Practices

BCBS published a report that examines the Pillar 2 supervisory review practices and approaches in Basel member jurisdictions.

June 21, 2019 WebPage Regulatory News
News

IASB Publishes Work Plan and Meeting Updates for June 2019

IASB published an updated work plan and a summary of its June meeting, which presents preliminary decisions of the Board.

June 21, 2019 WebPage Regulatory News
News

HKMA Publishes Banking Exposure Limits Code Under Banking Ordinance

HKMA issued a circular to all authorized institutions informing that the Banking (Exposure Limits) Code has been published in the Gazette on June 21, 2019.

June 21, 2019 WebPage Regulatory News
News

OSFI Proposes Guideline on Internal Model Oversight for Insurers

OSFI proposed the draft guideline E-25 on the internal model oversight framework for federally regulated property and casualty (P&C) insurance companies.

June 21, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for June 2019

Under the Single Rulebook question and answer (Q&A) updates for this week, EBA published one answer regarding the calculation of institution-specific countercyclical capital buffer rates.

June 21, 2019 WebPage Regulatory News
News

SEC Finalizes Capital and Margin Requirements for Security-Based Swaps

SEC adopted a package of rules and rule amendments to establish capital, margin, and segregation requirements for security-based swaps, under Title VII of the Dodd-Frank Act.

June 21, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3304