EBA published its 2017 Annual Report. The report provides a detailed account the work of EBA in the past year and describes the key areas of focus in the coming years.
Key activities of EBA during 2017 are as follows:
- Finalized important components of the Single Rulebook.
- Welcomed the agreement reached on the Basel III framework BCBS, in December 2017, which concludes the global post-crisis prudential reforms and puts an end to the remaining regulatory uncertainty.
- Continued its work on the enhancement of the comparability of capital requirements with the objective of restoring the overall trust in internal models.
- Contributed to many Capital Markets Union initiatives, which have allowed it to establish itself, over the years, as the leading regulatory body on securitization and covered bonds in the EU.
- Played an important role in cleansing bank balance sheets and reducing non-performing loans (NPLs). In particular, it supported the Council's action plan to address NPLs by developing detailed templates to help establish a proper secondary market for these loans in the EU and guidelines to help manage NPLs more effectively.
- Strengthened its role as EU data hub for the collection, use, and dissemination of banking data by improving transparency and expanding its data infrastructure.
- Continued to enhance the protection of consumers; promote transparency, simplicity, and fairness for consumer financial products and services across the Single Market; monitor financial innovation; and contribute to secure and efficient retail payments in the EU.
As per the report, the key areas of focus for 2018 include the attention areas highlighted by the annual benchmarking exercise, preparation for the full implementation of Basel III, further work on NPLs, 2018 EU-wide stress test, 2018 EU-wide transparency exercise, work in the area of third-country equivalence, a follow-up report assessing the responses received and setting out the roadmap for EBA’s fintech work in 2018 and 2019, and implementing new rules on payment services. In 2018, EBA expects to publish guidelines on management of nonperforming and forborne exposures; develop guidelines on bank loan origination, monitoring and internal governance; implement guidelines on enhanced disclosure requirements on asset quality and NPLs to all banks; develop technical standards on IRRBB (work expected to start in 2018 and to finish in 2019); development of SREP guidelines on proportionality; and focus on guidelines on the management of ICT risk for institutions.
Keywords: Europe, EU, Banking, Annual Report, NPLs, Proportionality, IRRBB, Basel III, EBA
Previous ArticleAPRA Standards to Strengthen Role of Appointed Actuary for Insurers
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.
FSB finalized the toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities.
ECB published eleventh issue of the Macroprudential Bulletin, which provides insight into the ongoing work of ECB in the field of macro-prudential policy.
HM Treasury issued a call for evidence seeking views to reform the prudential regulatory regime—also known as Solvency II—of the insurance sector in UK.
ESRB responded to the EC consultation on review of Solvency II regime.
HM Treasury launched a consultation on Phase II of the Future Regulatory Framework Review, with the comment period ending on January 19, 2021.
EC adopted the work program for 2021.