EBA欧洲银行-Introductorystatement-of-Andrea-Enria-at-the-Committee-on-Economic-and-Monetary-Affairs-28ECON2920of-the-European-Parliament-260916_3页_155kb

EBA Introductory Statement Summary (26/09/2016)

Core Content

Andrea Enria, Chairperson of the European Banking Authority (EBA), delivered an introductory statement to the Committee on Economic and Monetary Affairs (ECON) of the European Parliament on 26 September 2016. The statement outlines the EBA's key priorities and progress in addressing challenges within the European banking sector.

Main Points

1. Bank Balance Sheet Repair

• The process of repairing EU banks' balance sheets has made further progress.
• The 2016 EBA stress test exercise and transparency measures demonstrate that efforts to improve sector resilience are yielding results.
• However, progress in improving asset quality remains slow and uneven.
• The average non-performing loans (NPLs) ratio in the EU is 5.7%, three times higher than in other major jurisdictions.
• In ten Member States, the NPL ratio exceeds 12%.
• High NPLs negatively impact bank profitability, limit new lending, and may harm distressed borrowers.

2. Policy Recommendations for NPLs

• The EBA has proposed three policy actions to address NPLs:
  • (i) Increasing supervisory pressure through qualitative and quantitative targets.
  • (ii) Tackling structural issues in judicial procedures, accounting, and tax regimes.
  • (iii) Improving secondary markets to facilitate NPL disposals.

3. Implementation of BRRD

• The EBA is monitoring the adjustment of bank balance sheets and corporate structures to the Bank Recovery and Resolution Directive (BRRD).
• Resolution authorities are working on finalizing resolution plans, resolvability assessments, and MREL (Minimum Required Eligible Liabilities) decisions, especially for the largest banks.
• The EBA has developed more than three quarters of the mandated standards and guidelines under BRRD.
• A report on the MREL framework is being finalized, providing qualitative and quantitative insights to support the implementation of TLAC (Total Loss Absorbing Capacity) standards from the Financial Stability Board (FSB).

4. Refining Capital Requirements

• The EBA is closely following discussions at the Basel Committee on Banking Supervision (BCBS) to refine capital requirements and reduce variability in risk-weighted assets.
• Regulatory adjustments are needed to enhance the reliability and comparability of outcomes from bank internal models.
• The EBA emphasizes the importance of maintaining risk sensitivity and avoiding unjustified capital increases in the regulatory framework.

5. Proportionality in Banking Regulation

• The EBA is exploring ways to increase proportionality in banking regulation.
• While the Single Rulebook already includes proportionality, the regulatory framework has become overly complex.
• The EBA acknowledges the need to assess whether simple business models are subject to an appropriate compliance burden.
• A discussion paper on this topic is expected to be issued soon.

6. Supervisory Convergence

• The EBA's annual report highlights significant progress in supervisory convergence.
• Despite resource constraints, the EBA has managed to advance key initiatives.
• The use of "questions and answers" (Q&As) and own initiative guidelines by the ESAs is emphasized as essential for achieving consistency across the Single Market and ensuring transparency in supervisory decisions.
• These tools help avoid fragmentation in supervisory guidance and support harmonization of practices.

7. UK Referendum Impact

• The UK referendum on EU participation raised concerns within the EBA staff.
• The EBA stresses the importance of a timely decision regarding the future location of the Authority to ensure staff and family stability.
• A smooth transition is necessary to minimize uncertainty and disruption.

Key Information

• NPL Ratio in the EU: 5.7%, with ten Member States exceeding 12%.
• BRRD Implementation: The EBA has delivered over 75% of the mandated standards and guidelines.
• MREL Framework: A report on its implementation and design is being finalized.
• Capital Requirements: The EBA supports refining capital rules while preserving risk sensitivity.
• Proportionality: The EBA is working to simplify regulation for banks with simple business models.
• Supervisory Tools: Q&As and own initiative guidelines are critical for convergence and transparency.
• UK Referendum Impact: Urges for a quick decision to address uncertainty and ensure stability.

Conclusion

Enria's statement reflects the EBA's ongoing efforts to strengthen the resilience of the European banking sector, improve asset quality, and ensure regulatory consistency. It also highlights the challenges posed by financial innovation, the importance of proportionality, and the need for a coordinated approach in international regulatory discussions. The UK referendum adds a layer of urgency regarding the EBA's future and its ability to maintain stability and continuity in its operations.