EBA欧洲银行-EBA-BS-2014-277rev1-28Minutes-BoS-13-14-May-2014-APPROVED2920FOR-WEBSITE_15页_350kb

EBA Board of Supervisors – Final Minutes Summary (13-14 May 2014)

Core Content Overview

The EBA Board of Supervisors (BoS) convened on 13-14 May 2014 in London, reviewing a range of topics related to risk management, stress testing, reporting requirements, and supervisory frameworks. The meeting included confidential discussions for voting and non-voting members with direct supervisory functions, and several key documents and proposals were presented for approval or further development.

Main Agenda Items and Key Points

Agenda Item 2: Opening and Approval of Agenda and Minutes

• The Chairperson opened the meeting and updated members on changes to BoS membership.
• Danièle Nouy was appointed as the new ECB BoS member, with Korbinian Ibel as her alternate.
• Anthony Kruizinga was replaced by Paul Hilbers as the alternate to the Netherlands' BoS member.
• A vacancy notice was issued for the Chair of SCConFin.
• The agenda and minutes of the previous meeting were approved.

Agenda Item 3: Update on Risks and Vulnerabilities

• EBA staff presented an update on risks and vulnerabilities.
• The SCOP Chair highlighted three main issues:
  1. Execution risks: Institutions must have sufficient resources to meet regulatory requirements.
  2. Funding environment: Improved opportunities but with caution due to potential market sentiment shifts.
  3. IT and conduct risks: Concerns about IT systems for data aggregation and reluctance of some institutions to adequately provision for conduct risk, potentially affecting capital ratios.
• The ESRB representative noted four Member States had implemented national macroprudential measures and mentioned follow-up activities on Ukraine.

Agenda Item 4: Stress Testing – Process Steps and Publication Strategy

• The EU-wide stress test results and comprehensive assessment were expected to be published before the end of October 2014.
• Proposals were made for publication strategies:
  • National stress test results using the EBA scenario, methodology, and threshold should align with EBA's publication date.
  • For national stress tests with different methodologies, there should be a one-month gap to avoid confusion.
  • NCAs should align disclosure templates for comparison.
• Some members preferred aggregated AQR results, while others supported publishing supervisory reaction functions after results.
• The STTF was tasked to develop proposals on common capital ratios by June 2014.

Agenda Item 5: Final Draft RTS and GL on Recovery Plans

• A first set of technical standards was presented for recovery plans.
• The scope of application was discussed, with some members questioning if recovery plans apply only to group-level or also to subsidiaries.
• The proportionality principle was emphasized, as recovery plans apply to all EU banks, unlike FSB's focus on G-SIBs.
• The package was approved via qualified majority voting and will be sent to the Commission for endorsement.

Agenda Item 6: Final RTS, ITS, and GL on G-SILs

• Final drafts on the identification and disclosure of G-SILs were presented, replicating the BCBS methodology.
• Some members had reservations about the GL on underlying data of the 12 indicators, but the majority supported the disclosure as non-sensitive.
• The Commission representative supported the proposal and emphasized the need for clear communication.
• The documents were approved and will be sent to the Commission for endorsement, with the GL published on the EBA website.

Agenda Item 7: Reporting Strategy

• A proposal was made to limit releases to two per year (one minor and one major).
• Patch releases to fix validation rule errors were supported, with a request for NCA support.
• The EBA was asked to draft a proposal to remove Annexes XV and XIV from the ITS on reporting.
• A communication strategy was needed for external stakeholders.
• No updates to liquidity and leverage reporting were planned due to lack of delegated acts.

Agenda Item 8: Data Collection for LCR, NSFR, and LR

• Three options were presented for data collection, with the majority supporting the temporary continuation of Basel III/EU ISG QIS templates.
• The Commission and Bundesbank confirmed the feasibility of this approach.
• The next update of the list would be considered in 1Q2015 for NSFR and 4Q2015/1Q2016 for LR.

Agenda Item 9: Final Draft RTS on Professional Indemnity Insurance

• A final draft RTS on professional indemnity insurance for mortgage credit intermediaries was approved.
• The EBA was mandated to review the minimum claim amount every 3 years, next in 2018.

Agenda Item 10: Discussion Note on Sales Staff Remuneration

• A discussion note on remuneration for sales staff was presented, with mixed views on merging it with the CRDIV remuneration GL.
• A majority supported a single consultation paper with separate chapters.
• SCRePol and SCConFin were instructed to coordinate to avoid terminology inconsistencies.

Agenda Item 11: First List of CET1 Instruments

• A list of CET1 instruments was presented, based on information from NCAs and issued before the CRR entered into force.
• Caveats were included to highlight limitations and the need for peer review.
• Regular updates were to be conducted by the Subgroup on Own Funds.
• The list would be updated by the end of 2014.

Agenda Item 12: Response to Call for Advice on Macroprudential Policy

• The EBA staff presented an update on macroprudential policy, including the classification of instruments, pecking order, and regulatory limits.
• BoS members emphasized coordination with ESRB and flexibility in responding to systemic risk episodes.
• The draft report would be reviewed by SCRePol and tabled at the June BoS meeting.

Agenda Item 13: CP on Benchmarking of Internal Models

• A consultation paper (CP) on benchmarking internal models was tabled for June BoS meeting.
• The proposed benchmarks included Low Default Portfolios (LDP) for credit risk and Basel HPE portfolios for market risk.
• The EBA was asked to include additional questions in the CP for consultation.
• The 2014 benchmarking exercise was approved as per the submitted proposal.

Agenda Item 14: Covered Bond Report

• The draft report on covered bonds was presented, including recommendations on best practices and qualifying criteria.
• Key topics included independent business administrators, mortgage cover pools, derivatives, and investor disclosures.
• ESMA was to coordinate on investor disclosure improvements.
• The report would be further developed by SCRePol and presented at the June BoS meeting.

Agenda Item 15: SREP Guidelines

• The SCOP Chair updated on the draft SREP guidelines, which included four main elements: business model analysis, internal governance, capital adequacy, and liquidity risk.
• A new score 'F' was proposed to identify failing or likely-to-fail institutions.
• The SREP GL would be discussed at the June BoS meeting and published in time for the SSM's establishment.

Agenda Item 16: Review Panel – Work Programme

• The Review Panel was nearing the completion of the Peer Review on the GL on Concentration Risk.
• A proposed 2015-2016 work programme was approved, including reviews on various supervisory documents.
• Some members called for more flexibility in the peer review approach, and a possible delay of the 2014 review was discussed.