Featured Product

    EBA Annual Report Outlines Strategic Priorities for 2022

    The European Banking Authority (EBA) published the Consolidated Annual Activity Report and the annual report detailing its activities and achievements; the annual report also outlines the key priorities for 2022. The key strategic priorities for the coming year cover review of stress-testing framework, implementation of mandates in the area of anti-money laundering/countering the financing of terrorism (AML/CFT), initiatives on financial innovation and sustainable finance, and assessment of the impact of Ukraine war and COVID-19 pandemic on the banking sector in European Union (EU).

    The key priorities for 2022 are summarized below:

    • Intended publication, by EBA, of the guidelines on interest rate risk in the banking book (IRRBB) and credit spread risk in the banking book (CSRBB), the draft regulatory technical standards on the IRRBB standardized approach, and the draft regulatory technical standards on IRRBB supervisory outlier tests.
    • Publication, by EBA and the European Securities and Markets Authority (ESMA), of the final joint guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) by July 2022.
    • Issuance of a proposal, by EBA, to revise the  guidelines on methods for calculating contributions to Deposit Guarantee Schemes in the second quarter of 2022; this ongoing review of the guidelines is intended to assess whether the risk-based method outlined in the guidelines provides adequate risk-differentiation between institutions and to identify practical issues or obstacles in the application of the current framework.
    • Publication by EBA, in the first of half of 2022, of the final drafts of the regulatory technical standards on risk retention, the implementing technical standards on the mapping of external credit assessment institutions (ECAIs) credit assessment for securitization positions, and the regulatory technical standards on triggers for switching the amortization system in  simple, transparent, and standardized (STS) synthetic securitization.
    • Preparation for the 2023 EBA stress test and introduction of targeted changes to the stress testing approach: first change under consideration is the enlargement of the sample to include a broader risk coverage at the EU level and a wider geographical representation; second targeted change involves the gradual introduction of a hybrid framework in which top-down and bottom-up methods applied to different risk areas would coexist; and the third consideration involves one of the priorities for 2022 to discuss how to best include climate risk in a stress test framework.
    • Revision of supervisory reporting framework in 2022 and finalization of the reporting framework 3.3. These requirements will integrate monitoring of the threshold and other procedural aspects on the establishment of the Intermediate Parent Undertaking and in addition, will include the regular update to the benchmarking implementing technical standards and a comprehensive review of the implementing technical standards on resolution planning.
    • Initiation of work on the new interest rate risk in the banking book (IRRBB) reporting framework, building on the new policy package that is being developed and Pillar 3 disclosures on IRRBB.
    • Enhancement of market discipline and the use of Pillar 3 information facilitating centralized access by becoming a hub of Pillar 3 disclosures for the European Economic Area credit institutions. The Pillar 3 data hub is intended to become operational by the fourth quarter of 2024, with institutions starting to report the data in January 2025.
    • Preparation for the regulatory and oversight mandates under the Digital Operational Resilience Act (DORA) as well as for the regulatory and potential supervisory mandates under markets in crypto-assets (MiCA).
    • Partnering with other European Supervisory Authorities (ESMA and EIOPA) and the European Commission to establish the flagship Supervisory Digital Finance Academy in EU, with the Academy aimed to help supervisors across EU to obtain knowledge on innovative applications of technology to financial services and activities.
    • Completion of the AML/CFT policy framework, with guidance on topical issues including on the role of AML/CFT compliance officers, the use of remote customer onboarding solutions, de-risking, and financial inclusion. Identification, assessment, and dissemination of information about money laundering and terrorist financing risks based on information from EBA’s new, central, AML/CFT database, its "colleges" monitoring activity, and its assessments of the national authorities approaches to AML/ CFT supervision.
    • Begin development of an environmental, social, and governance (ESG) risk monitoring framework and explore integration and new assessment, post initiation of the  first integration of ESG-related aspects into the existing risk-monitoring framework via the risk assessment questionnaire. Performing of preparatory work to provide further guidance to institutions on the assessment and management of ESG risks.
    • Monitoring of the evolution of asset quality, assessment of the regulatory COVID-19-related support programs, and maintenance of the COVID-19 reporting and disclosures requirements.


    Related Links


    Keywords: Europe, EU, Banking, Annual Report, Stress Testing, Investment Firms, Securitization, IRRBB, Sustainable Finance, DORA, Regtech, Covid-19, Regulatory Capital, Disclosures, Basel, SREP, ESG, Work Priorities, EBA, EC

    Featured Experts
    Related Articles

    FINMA Approves Merger of Credit Suisse and UBS

    The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.

    March 21, 2023 WebPage Regulatory News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.

    March 07, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    MFSA Sets Out Supervisory Priorities, Issues Reporting Updates

    The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023

    March 02, 2023 WebPage Regulatory News

    German Regulators Issue Multiple Reporting Updates for Banks

    Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8806