EBA published annual report on the convergence of supervisory practices in EU. The report summarizes EBA observations on the current state of convergence of supervisory practices and highlights the activities that EBA carried out in 2018 to promote this convergence, in accordance with the mandates set out in its Founding Regulation and in the Capital Requirements Directive (CRD). The report also covers the EBA assessment of convergence in the supervisory review and evaluation process (SREP) as well as the supervisory convergence in the continuum between ongoing supervision, recovery, and resolution.
Overall, the report highlights good progress of competent authorities in the implementation of the 2014 SREP guidelines and in taking forward the recommendations and observations of EBA during the 2016 and 2017 bilateral convergence visits. The report further observes that the continuum between ongoing supervision and recovery and resolution is progressively benefiting from the implementation of internal procedures, which take into account the Single Rulebook and contribute to ensuring the convergence of supervisory practices. However, the report also points out a number of remaining challenges, including converging capital adequacy assessments and determining institution-specific additional own funds requirements. Further improvements are still needed on the key aspects, particularly to ensure that all the institutions, which do not benefit from a waiver, have developed a recovery plan.
EBA aims to foster comparable supervisory approaches across the single market to ensure a level playing field, effective supervision of cross-border groups, and promote supervisory best practices. Moreover, development of the Single Rulebook dedicated to supervisory activities as well as the monitoring of its effective and consistent application will remain the core business of EBA in the coming years. EBA will also further expand its training program for authorities assisting in the implementation of the regulatory and policy products.
Keywords: Europe, EU, Banking, Supervisory Practices, CRD, SREP, Single Rulebook, Capital Adequacy, BRRD, EBA
Next ArticleECB Announces Start Date for Euro Short-Term Rate
ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.
EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.
HKMA published the seventh and final issue of the Regtech Watch series, which outlines the three-year roadmap of HKMA to integrate supervisory technology, or suptech, into its processes.
EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).
BIS, Danmarks Nationalbank, Central Bank of Iceland, Norges Bank, and Sveriges Riksbank launched an Innovation Hub in Stockholm, making this the fifth BIS Innovation Hub Center to be opened in the past two years.
FDITECH, the technology lab of FDIC, announced a tech sprint that is designed to explore new technologies and techniques that would help expand the capabilities of community banks to meet the needs of unbanked individuals and households.
EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.
The ESRB paper that presents an analytical framework that assesses and quantifies the potential impact of a bank failure on the real economy through the lending function.