Featured Product

    EBA Reviews Usefulness of Single Rulebook Questions and Answers

    August 06, 2019

    EBA published an overview of the findings from a review of the use, usefulness, and implementation of the Single Rulebook Questions and Answers (Q&A) tool. The Q&A tool provides common answers to stakeholder questions on the regulatory framework in EU. The review, which focused on the final Q&A for the Capital Requirements Regulation and Directive (CRR and CRD), was carried out in the second half of 2018, using questionnaires addressed to competent authorities and select industry representatives. Overall, competent authorities and institutions are satisfied with the utility of the Single Rulebook Q&A tool and the answers, but they made important and sometimes far-reaching suggestions for improvement.

    The findings show that competent authorities and institutions widely encourage the use of the Q&A process and tool. The final answers are very largely followed and play a considerable role in the application and implementation of CRR and CRD. Similar rationales were given to explain the limited number of cases of non-application that were reported. EBA is considering these cases in more detail to better understand the obstacles and issues. Based on the observations made, EBA included in the report non-prescriptive good practice guidance that institutions could adopt when using the Q&A tool. The main observations of the review can be summarized as follows:

    • Competent authorities use regular or ad hoc measures to encourage the use of the process and tool internally.
    • Similarities were observed in terms of the measures taken by competent authorities at the institution level or by institutions internally to promote the Q&A tool and the use of answers.
    • Cases of non-application of Q&A identified by survey participants were limited. Based on responses as of the end of September 2019, there were 29 cases out of about 620 final published CRR and CRD Q&A on policy issues.
    • The number of cases of non-application notified by competent authorities was limited to 11 Q&A, while the number of such cases notified by institutions was 23 Q&A (with some duplication between the two).
    • Competent authorities and institutions are, overall, satisfied with the utility of the Single Rulebook Q&A tool and the answers including the Interactive Single Rulebook, but they make important/far-reaching suggestions for improvement.

    Based on the above observations, EBA put forward a non-prescriptive, good practice guidance that institutions could adopt with respect to the use of Q&A. The Q&A process was established by EBA in 2013 and followed a thorough due process involving close and ongoing interaction between EBA, competent authorities, and EC, with a view to developing common answers to stakeholder questions that are fully consistent with the EU legislative texts. Over 4,440 questions had been submitted through the Q&A tool at the end of 2018. Out of these, about 1,545 issues could be answered and nearly 1,360 questions had to be rejected. Notwithstanding some concerns about the time it takes to finalize answers, and in a very few cases about their impact, the feedback from the industry and the supervisory community has been broadly positive.

     

    Related Links

    Keywords: Europe, EU, Banking, Single Rulebook, Interactive Single Rulebook, Q&A, CRR, CRD IV, Single Rulebook Review, EBA

    Featured Experts
    Related Articles
    News

    OSFI Issues Results of Pilot on Climate Risk Scenario Analysis

    The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.

    January 20, 2022 WebPage Regulatory News
    News

    EC Issues Regulation on Adjustments to K-Factor Coefficients Under IFR

    The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).

    January 20, 2022 WebPage Regulatory News
    News

    ECB Issues Opinions on Green Bonds Standard and CRR Proposals

    The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.

    January 19, 2022 WebPage Regulatory News
    News

    ESRB Explores Policy Response to Risks Arising from Digitalization

    The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.

    January 18, 2022 WebPage Regulatory News
    News

    HKMA Consults on FIRO Code, Revises Policy on Foreign Exchange Risk

    The Hong Kong Monetary Authority (HKMA) is consulting on the draft Financial Institutions (Resolution) Ordinance (Cap. 628), or FIRO, Code of Practice chapter on liquidity and funding in resolution, until March 14, 2022.

    January 18, 2022 WebPage Regulatory News
    News

    FI Publishes Multiple Regulatory and Reporting Updates

    The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.

    January 17, 2022 WebPage Regulatory News
    News

    EU Authorities Address COVID-19 Reporting, MCD, and PSD2 Issues

    The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.

    January 17, 2022 WebPage Regulatory News
    News

    BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance

    The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.

    January 16, 2022 WebPage Regulatory News
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7903