European Banking Authority

Supervisory cooperation in the fight against financial crime is improving, the EBA finds

Retrieved on: 
Thursday, August 10, 2023
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The Report finds that competent authorities had taken important steps to improve the functioning of AML/CFT colleges.

Key Points: 
  • The Report finds that competent authorities had taken important steps to improve the functioning of AML/CFT colleges.
  • The Report highlights good practices that will be useful for competent authorities to further improve the effectiveness of AML/CFT colleges and of supervisory outcomes.
  • AML/CFT colleges are permanent structures that serve to enhance cooperation between different supervisors involved in the supervision of cross-border institutions.
  • This Report sets out findings and observations from the monitoring of AML/CFT colleges in 2022 done by EBA staff.

The EBA's recent mystery shopping exercise shows the value this tool adds to the supervisory tasks of national authorities

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Tuesday, August 8, 2023
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The exercise confirmed that mystery shopping is a tool that adds immense value to the supervision of national competent authorities and is complementary to other more conventional tools or approaches.

Key Points: 
  • The exercise confirmed that mystery shopping is a tool that adds immense value to the supervision of national competent authorities and is complementary to other more conventional tools or approaches.
  • The EBA has coordinated the mystery shopping exercise in 2023 involving five national competent authorities, which took part as direct participants or observers.
  • In order to account for divergent national circumstances, such as provisions in national law and national supervisory priorities, some details of the mystery shopping exercise varied between participating Member States.
  • As a first step, the EBA had published a Report on mystery shopping activities of national competent authorities, which was published in May 2021.

The EBA is collecting bank data on interest rate risk in the banking book

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Monday, August 7, 2023
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07 August 2023

Key Points: 
  • 07 August 2023
    The European Banking Authority (EBA) today published its Decision to run an ad-hoc data collection of institutions’ IRRBB data.
  • This data collection will provide competent authorities and the EBA with timely and necessary data and tools to monitor risks arising from interest rate changes and the implementation of the IRRBB scrutiny plan.
  • Competent authorities will need to submit institutions’ data to the EBA by March 2024.
  • The technical package supporting the collection of this IRRBB ad-hoc collection will be made available to the public on EBA website by mid-October 2023, as part of reporting framework 3.3.

EBA updates timeline for the implementation of the IRB roadmap and publishes its final supervisory handbook for the validation of IRB rating systems

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Monday, August 7, 2023
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Key Points: 

EBA settles disagreement between the Spanish and Belgian deposit guarantee schemes

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Friday, August 4, 2023
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04 August 2023

Key Points: 
  • 04 August 2023
    The European Banking Authority (EBA) publishes today a binding mediation decision between two deposit guarantee schemes (DGSs), the Spanish Deposit Guarantee Fund for Credit Institutions and the Belgian Deposit Guarantee Fund for Financial Services.
  • The EBA was requested by the Spanish DGS to assist in settling a disagreement with the Belgian DGS.
  • The disagreement concerned differences in view over the contributions that should be considered as paid to the Belgian DGS in the twelve months prior to the change of affiliation and which the Deposit Guarantee Schemes Directive (DGSD) requires to be transferred to the Spanish DGS.
  • The Spanish and Belgian DGS have both subscribed to a cooperation agreement, Part III of which covers transfer of DGS contributions.

The EBA publishes follow-up Report on the use of machine learning for internal ratings-based models

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Friday, August 4, 2023
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04 August 2023

Key Points: 
  • 04 August 2023
    The European Banking Authority (EBA) published today a follow-up Report presenting the feedback received during the consultation on machine learning (ML) used in the context of internal ratings-based (IRB) models.
  • This follow-up Report summarises the main conclusions from the consultation and provides an overview of the current use cases of ML techniques for IRB models.
  • In this Report, the EBA reiterated its recommendations proposed in the discussion paper, which were broadly supported by the respondents, aiming at ensuring a prudent use of machine learning models in the context of the IRB framework.
  • The use of ML techniques in credit risk models may create issues beyond the scope of prudential consideration.

The EBA publishes its first Report on the implementation of the European Resolution Examination Programme

Retrieved on: 
Friday, August 4, 2023
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The Report observes that, overall, resolution authorities incorporated the work priorities set by the EBA, with MREL monitoring being a key focus.

Key Points: 
  • The Report observes that, overall, resolution authorities incorporated the work priorities set by the EBA, with MREL monitoring being a key focus.
  • The EBA observed that the MREL monitoring was a key activity of focus for all resolution authorities, reflecting the criticality of this element to ensure feasibility of potential resolution actions.
  • As of December 2022, resolution authorities were, overall, confident that most banks would reach their final requirements within the required deadline.
  • In the current resolution convergence Report the EBA set the priorities for 2024
    Franca Rosa Congiu
    [email protected] | +33 1 86 52 7052 | Follow @EBA_News

The EBA consults on technical standards to identify extraordinary circumstances to derogate from certain requirements in the area of market risk

Retrieved on: 
Friday, August 4, 2023
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03 August 2023

Key Points: 
  • 03 August 2023
    The European Banking Authority (EBA) today launched a public consultation on draft Regulatory Technical Standards (RTS) to identify extraordinary circumstances of market disruption, permitting to waive certain requirements for the calculation of own funds requirements for market risk on the basis of internal models.
  • The draft RTS establish a high-level framework for identifying a situation of extraordinary circumstances, setting out conditions that need to be met, and define indicators that could support the identification of extraordinary circumstances.
  • Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page.
  • The EBA invites interested stakeholders to register using this link by 18 September 2023, 16:00 CEST.

The EBA updates guidance on reporting of Financial Soundness Indicators to the International Monetary Fund

Retrieved on: 
Thursday, August 3, 2023
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02 August 2023

Key Points: 
  • 02 August 2023
    The European Banking Authority (EBA) published today an updated guidance on how to compile and report to the International Monetary Fund (IMF) the Financial Soundness Indicators (FSI) based on EBA data.
  • FSIs provide insight into the financial health and soundness of countries’ financial institutions as well as corporate and household sectors, thus supporting the economic and financial stability analysis.
  • The EBA guidance note provides a mapping of IMF FSI indicators to EBA supervisory reporting data, ensuring a harmonised methodology across the EU when compiling and reporting FSIs to the IMF.
  • This updated mapping includes also additional metadata recommendations, which EU national authorities should consider when reporting country-level FSI to the IMF.

EBA consults on amendments to the Guidelines on the specification and disclosure of systemic importance indicators

Retrieved on: 
Wednesday, August 2, 2023
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01 August 2023

Key Points: 
  • 01 August 2023
    The European Banking Authority (EBA) launched today a public consultation on amendments to its Guidelines on the specification and disclosure of systemic importance indicators.
  • To ensure consistency between the internationally agreed standards and the EU regulatory framework, the annex of the EBA Guidelines has been amended to replicate the yearly updated Basel reporting template.
  • The EBA will not hold a virtual public hearing on the consultation paper considering the low impact of the suggested changes.
  • The scope of the consultation, and of the consultation questions, is limited to the amendments and additions.