EBA欧洲银行-EBA-BS-2011-208-PUBLICEBA-telco-minutes-BoS-1-December2011-_2页_192kb

EBA Board of Supervisors Teleconference Summary

Date and Time

• Date: 1 December 2011
• Time: 12:10hrs – 14:00hrs

Core Content

The EBA Board of Supervisors convened a teleconference to discuss several key topics related to banking regulation, particularly focusing on the interpretation of deleveraging requirements, transparency in capital planning, and the BCCS (Bank Capital Conversion Scheme) term sheet.

Main Points and Discussions

1. Debriefing on Previous Meetings

• The Chair provided a summary of the 25 November ESRB Steering Committee meeting and the previous day's ECOFIN breakfast.
• He emphasized the importance of aligning with the ESRB and ECOFIN in the interpretation of regulatory requirements, especially regarding the avoidance of excessive deleveraging.

2. Communication with ECOFIN and ESRB

• The Board supported the Chair’s proposal to send a letter to the Presidents of the ECOFIN Council and the ESRB.
• The letter would explain the EBA's interpretation of the need to avoid excessive deleveraging and outline the intention to have a final QM (Qualified Majority) vote on the recap package at the next Board meeting on 7 December.
• The Chair committed to drafting the letter that day, circulating it for comments, and sending it on 2 December.

3. Transparency in Capital Planning

• A discussion was held on the transparency of NSAs (National Supervisory Authorities) regarding their chosen transitional floors.
• It was agreed that the applicable approach should be clearly disclosed to enhance trust and promote transparency among stakeholders.

4. Coordination of Capital Plans

• The EBA is promoting and coordinating the review and discussion of capital plans within colleges.
• However, these plans are not part of the joint decision-making process and will be subject to the consolidating supervisor’s approval.
• The Board emphasized the importance of considering the geographical impact of proposed deleveraging measures within colleges.

5. BCCS Term Sheet Considerations

• Several points were raised regarding the BCCS term sheet.
• A member questioned whether the EBA Staff were considering a minimum of 2% RWAs (Risk-Weighted Assets) for BCCS to ensure the conversion brings the bank up to the 9% CT1 (Common Equity Tier 1) ratio.
• There was also a suggestion to drop the right to any regulatory call and the mandatory coupon cancellation.
• The Chair concluded that these suggestions should not be accommodated.

6. Revised Draft Recommendation

• The Chair confirmed that a revised version of the draft Recommendation would be circulated for comments that evening.
• The revision would include a revised point 3(c), which is likely related to the interpretation of deleveraging requirements or capital planning.

Key Information

• The EBA aims to maintain independence in its interpretation of deleveraging requirements.
• There is a focus on transparent communication with ECOFIN and ESRB to ensure alignment.
• The geographical impact of deleveraging within colleges is a critical consideration.
• The BCCS term sheet is under review, but certain proposed changes were rejected.
• A revised draft Recommendation is expected to be circulated for further feedback.

Chair's Name

• Andrea Enria
• Chair of the EBA Board of Supervisors

Conclusion

The teleconference highlighted the EBA's commitment to transparency, coordination, and alignment with ECOFIN and ESRB in the context of banking regulation and deleveraging. The revised Recommendation and the planned QM vote on the recap package reflect ongoing efforts to refine and implement regulatory measures effectively.