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

    EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    MAS Amends Notice on Related Party Transactions of Banks

    MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.

    April 08, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Euro Short-Term Rate

    ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.

    April 07, 2021 WebPage Regulatory News
    News

    EBA Consults on Standards Related to FRTB-SA

    EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).

    April 07, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules Related to IRB Approach for Credit Risk

    PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.

    April 07, 2021 WebPage Regulatory News
    News

    BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK

    The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks

    FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks

    OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.

    April 06, 2021 WebPage Regulatory News
    News

    EU Amends CRR and Securitization Regulation in Response to Pandemic

    To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).

    April 06, 2021 WebPage Regulatory News
    News

    HM Treasury Announces G7 Agreement on Green Agenda Ahead of COP26

    HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.

    April 06, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6821