Featured Product

    EBA Report Examines Functioning of Supervisory Colleges in EU

    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

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    FSB Examines Implementation of Resolution Regimes in Financial Sector

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions and sets out plans for further work.

    November 14, 2019 WebPage Regulatory News
    News

    PRA Publishes Final Policy on Maintenance of TMTP Under Solvency II

    PRA published the policy statement (PS25/19) that contains the final supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTPs) under Solvency II.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    News

    IAIS Adopts ComFrame, ICS, and Holistic Framework for Systemic Risk

    IAIS adopted a comprehensive set of reforms—Common Framework (ComFrame), Insurance Capital Standard (ICS) Version 2.0, and Holistic Framework for Systemic Risk—that will enable effective cross-border supervision of insurance groups and contribute to global financial stability.

    November 14, 2019 WebPage Regulatory News
    News

    PRA Publishes Templates for Statistical Disclosures Under Solvency II

    PRA published templates for statistical disclosures, as required under Article 31(2) of the Solvency II Directive.

    November 14, 2019 WebPage Regulatory News
    News

    FASB Proposes Improvements to Derivatives and Hedging Standard

    FASB proposed an Accounting Standards Update, on codification improvements to hedge accounting under Topic 815, to clarify certain sections of the 2017 hedge accounting standard (Update 2017-12).

    November 13, 2019 WebPage Regulatory News
    News

    FASB Approves Guidance to Assist in Transition to New Reference Rates

    FASB approved an Accounting Standards Update (Topic 848) to provide temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the reference rate reform on financial reporting.

    November 13, 2019 WebPage Regulatory News
    News

    BIS and MAS Launch Innovation Hub in Singapore

    BIS and MAS launched the BIS Innovation Hub Center in Singapore.

    November 13, 2019 WebPage Regulatory News
    News

    MAS and Industry to Create Framework for Adoption of Responsible AIDA

    MAS announced that it is working with financial industry partners to create a framework for financial institutions to promote the responsible adoption of Artificial Intelligence and Data Analytics (AIDA).

    November 13, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4142