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
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.
ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.
ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.
EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).
SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.
US Agencies (FDIC, FED, and OCC) published a final rule that makes technical changes to the March 31, 2020 interim final rule that provides a five-year transition period for the impact of the current expected credit loss (CECL) methodology on regulatory capital.
ECB published results of the March 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets.
FINMA published guidance (06/2020) on extending or discontinuing various exemptions that were granted due to the COVID-19 crisis.
SRB launched a consultation on the minimum data needed for valuation of a bank in resolution.