Featured Product

    EBA Consults on Guidelines for Strengthening Pillar 2 Framework

    October 31, 2017

    EBA launched a public consultation to review three guidelines aimed at further enhancing institutions' risk management and supervisory convergence in the Supervisory Review and Evaluation Process (SREP). These three guidelines are SREP guidelines, interest rate risk in the banking book (IRRBB) guidelines, and institutions’ stress testing guidelines. The consultations on all three guidelines run until January 31, 2018.

    The overall SREP framework and the guidelines remain intact and the consultation is only focused on the elements being updated. The revisions enhance the requirements for supervisory stress testing and explain how stress testing outcomes will be used in setting Pillar 2 capital guidance (P2G). The guidelines have also been updated with assessments of internal governance based on the recently revised EBA guidelines on internal governance. The revised IRRBB guidelines reflect developments in the BCBS and clarify internal governance and supervisory outlier tests requirements during the first phase of the European implementation of the Basel standards. The revisions are, therefore, intended to act as a bridge to the future requirements, which will be incorporated in the CRD V/CRR2 framework. The revised guidelines on institutions' stress testing update the 2010 guidelines of EBA, to reflect industry practices and the incorporation of recovery planning. The revised guidelines also feature a common taxonomy on stress testing.

    This public consultation is in accordance with the Pillar 2 Roadmap that was published in April 2017. In accordance with the Pillar 2 Roadmap, these three guidelines are being consulted in parallel and are expected to be implemented by January 01, 2019 for the 2019 cycle of SREP and joint decisions on institution-specific prudential requirements. The comprehensive EU SREP framework, which was introduced by EBA in 2014, is now well-established and in use by supervisors across the EU. Following the global regulatory developments as well as EBA's supervisory convergence assessments, specific changes are needed to reinforce the framework as set out in EBA's Pillar 2 Roadmap.

     

    Related Links

    Comments Due Date: January 31, 2018

    Keywords: Europe, EU, Banking, SREP, Stress Testing, IRRBB, Pillar 2, EBA

    Featured Experts
    Related Articles
    News

    PRA Consults on Implementation of Certain Provisions of CRD5

    PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).

    July 31, 2020 WebPage Regulatory News
    News

    EIOPA Report Identifies Key Financial Stability Risks for Insurers

    EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Publishes Risk Dashboard for First Quarter of 2020

    EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Issues Updates on Stress Test Exercise for Banks in EU

    EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.

    July 30, 2020 WebPage Regulatory News
    News

    PRA Proposes Guidance Related to Matching Adjustment under Solvency II

    PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.

    July 30, 2020 WebPage Regulatory News
    News

    MAS Issues Guidance on Dividend Distributions by Banks

    MAS published a statement guidance on dividend distribution by banks.

    July 30, 2020 WebPage Regulatory News
    News

    APRA Updates Guidance on Capital Management for Banks

    APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.

    July 29, 2020 WebPage Regulatory News
    News

    FSB Report Reviews Macro-Prudential Framework and Tools in Germany

    FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.

    July 29, 2020 WebPage Regulatory News
    News

    EBA Urges Firms to Finalize Preparations for End of Brexit Transition

    EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.

    July 29, 2020 WebPage Regulatory News
    News

    SRB on Operational Continuity in Resolution and FMI Contingency Plans

    SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.

    July 29, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5606