EBA欧洲银行-EBA-BS-2018-256.rev1-28Final-minutes-June-BoS-meeting-without-Brexit-discussion2920PUBLICATION_19页_421kb

EBA BS 2018 256 rev1 – Summary of the Board of Supervisors Meeting

Core Content

The Board of Supervisors (BoS) of the European Banking Authority (EBA) convened on 12–13 June 2018 in London. The meeting covered a range of topics including updates on the European banking system, data collection for Basel III implementation, own funds-related matters, FinTech developments, and budget and relocation updates. The BoS provided guidance and approvals on several key initiatives, ensuring alignment with EU regulatory frameworks and supporting the EBA's operational and strategic objectives.

Main Points and Key Information

Agenda Item 1: Approval of Agenda

• The BoS approved the meeting agenda.
• Membership changes were announced:
  • Mateusz Mokrogulski (Poland), Carsten Kjaer Joensen (Denmark), and Finnur Sveinbjornsson (Iceland) were added to the BoS.
  • The National Bank of Netherlands BoS member would retire soon.
• The next BoS Away Day in July 2018 in Iceland will focus on:
  • EU policy developments on "too big to fail" issues.
  • Sustainable finance.
• Erich Loepers was replaced as chair of the Task Force on Impact Studies (TFIS).

Agenda Item 2: Appointment of MB Members and Election of Alternate Chair

• Edouard Fernández-Bollo was re-elected for a second term.
• Raimund Roeseler was elected by consensus.
• Pedro Duarte Neves (Bank of Portugal) would step down as Alternate Chair.
• Jo Swyngedouw was elected as the new Alternate Chair.

Agenda Item 3: Update on Risks and Vulnerabilities

• The Director of Economic Analysis and Statistics (EAS) reported:
  • Increase in CET1 ratio and decrease in Risk-Weighted Assets (RWAs).
  • NPLs are generally decreasing but remain high in certain jurisdictions.
  • Profitability is still low, with RoE below cost of equity.
  • 20 banks with high NPLs continued to pay generous dividends.
• IFRS 9 implementation led to increased coverage ratios and decreased capital ratios by 20 bps on average.
• Provisions declined between January and March 2018.
• SCOP urged supervisors to monitor credit standards and NPL reduction, and to watch banks' distribution policies.
• The EBA chairperson expressed concerns about RWA optimisation leading to shifts from standardised to IRB methods.

Agenda Item 4: Issues Note on Data Analysis for Basel III Implementation

• The EBA received a Call for Advice (CfA) from the European Commission on Basel III revisions.
• The EBA aims to collect data from a representative sample of banks across the EU.
• The data collection process will involve templates and collaboration with the Basel Committee on Banking Supervision (BCBS).
• The EBA plans to simplify templates for small banks and adjust the timeline to avoid overlaps with stress testing.
• The use of LEI data was proposed, but the final submission to BCBS will use anonymised data.
• SCRePol will approve the templates.

Agenda Item 5: Own Funds Related Matters

• The CET1 list and report were updated, reflecting changes in instruments and legal references.
• The third update of the AT1 monitoring report was discussed.
• The EBA decided to put the AT1 monitoring on hold due to resource constraints and the anticipated MREL monitoring.
• The BoS approved the publication of the CET1 list, report, and AT1 monitoring report.

Agenda Item 6: Opinion on Implementation of RTS on SCA and CSC under PSD 2

• The RTS on Strong Customer Authentication (SCA) and Common and Secure Communication (CSC) was published in March 2018 and applies from September 2019.
• A Consultation Paper (CP) on exemption from contingency measures was submitted to the BoS.
• The BoS approved the publication of the Opinion.

Agenda Item 7: Consultation Paper on Draft Guidelines for Exemption from Contingency Measures

• The CP aims to clarify the four conditions for exemption from contingency measures.
• It is intended to assist CAs in handling the expected number of requests for assessments.
• The European Commission supported the CP and requested clarification on the EBA's exemption-granting authority.
• The BoS approved the publication of the CP.

Agenda Item 8: EC Request on Costs and Performance of Structured Deposits

• The EBA will not be able to provide the requested data for the first instalment of the report due to data unavailability.
• The report will identify gaps and outline how they will be addressed in future editions.
• The BoS agreed to the proposal for submission in the fourth quarter of 2018.

Agenda Item 9: Assessment Methodology for AML Reviews

• The EBA will conduct AML reviews of 10 CAs from July 2018 to September 2019.
• A specific network of volunteers from CAs will support the reviews.
• The BoS supported the methodology and agreed to its publication.

Agenda Item 10: Fintech Related Matters

• Two reports were presented as part of the EBA FinTech Roadmap:
  • Prudential risks and opportunities from FinTech.
  • Impact of FinTech on credit institutions' business models.
• The BoS approved the reports and encouraged further work on AML, consumer protection, and data protection.

Agenda Item 11: Pillar 2 Roadmap

A) IRRBB Guidelines Revision

• The guidelines were revised to reflect new BCBS standards and the current interest rate environment.
• The BoS approved immediate publication, with implementation starting on 30 June 2019 and transitional provisions.
• The guidelines include flexibility in outlier tests and a flat threshold for stressed conditions.

B) SREP Guidelines Amendment

• The SREP guidelines were updated to include P2 Guidance and supervisory stress testing.
• The BoS approved the draft guidelines without any reference to disclosure, and with the proposed wording on combined buffer offsetting.

C) Stress Test Guidelines Review

• The draft guidelines update the 2010 version, incorporating new BCBS principles.
• Emphasis on proportionality, reverse stress testing, and new risks such as conduct and cyber risks.
• The BoS approved the revised guidelines.

Agenda Item 12: Brexit-Related Matters

• The meeting took place without UK representatives.

Agenda Item 13: Monitoring of MREL/TLAC Eligible Liabilities

• A proposal was introduced to monitor MREL/TLAC eligible liabilities.
• The Subgroup on Own Funds (SGOF) will lead this work, with full involvement of resolution authorities.
• The monitoring will start after the next ResCo meeting.

Agenda Item 14: Work Programme 2019

• The first draft of the 2019 EBA work programme was presented.
• Five strategic priorities and two horizontal priorities were outlined.
• Members requested more focus on strategic priorities and a refined approach.

Agenda Item 15: 2018 Amending Budget and Relocation Update

• The EBA's budget was slightly ahead of plan due to relocation costs and exchange rate fluctuations.
• Relocation to Paris is expected by March 2019.
• The building selection process involved market prospecting and a scoring system with 60% technical and 40% financial criteria.
• The BoS took note of the process and the amending budget.