EBA欧洲银行-Report-on-Convergence-of-Supervisory-Practices_52页_1mb

Summary of the EBA Report on Convergence of Supervisory Practices

Core Content

This report by the European Banking Authority (EBA) outlines its efforts to promote supervisory convergence across the European Union in 2018, as mandated by its Founding Regulation and Article 107 of the Capital Requirements Directive (CRD). The EBA utilizes a range of tools including regulatory products, training, and monitoring to ensure consistent application of the Single Rulebook and to align supervisory practices among competent authorities and resolution authorities.

Main Viewpoints

• Supervisory Convergence is a key objective of the EBA, aiming to ensure that supervisory practices across the EU are comparable, consistent, and lead to uniform outcomes.
• The SREP (Supervisory Review and Evaluation Process) plays a central role in this convergence, focusing on the assessment of an institution's viability, business model, internal governance, and risk management.
• The BRRD (Bank Recovery and Resolution Directive) framework is being integrated into the supervisory process, emphasizing the importance of a continuum between ongoing supervision, recovery, and resolution.
• Training and education are vital in fostering a common supervisory culture and ensuring the effective implementation of EBA policy products.
• The Single Rulebook remains the foundation of supervisory convergence, and its consistent application is a core priority for the EBA.

Key Information

1. EBA Tools for Convergence and Monitoring

The EBA employs three main tools to promote supervisory convergence:

• Regulatory and Policy Products: These include guidelines and technical standards that establish common supervisory practices.
• Training: The EBA provides training to competent and resolution authorities to ensure a shared understanding and consistent application of supervisory practices.
• Monitoring and Assessment: This includes college monitoring, peer reviews, desk-based reviews, and bilateral convergence visits to evaluate and enhance supervisory consistency.

These tools form a recursive 'assess-guide-train' process, where identifying divergences leads to the development of regulatory products, which are then supported by training to ensure uniform application.

2. Progress in Ongoing Supervision and SREP

• In 2018, competent authorities made good progress in implementing the SREP Guidelines from 2014 and following EBA recommendations from previous years.
• Challenges remain in areas such as:
  • Capital adequacy assessment methodologies
  • Institution-specific additional own funds requirements
  • Link between ongoing supervision, early intervention, and resolution

The EBA's policy work on Pillar 2, particularly the revision of the SREP Guidelines, has addressed many of these challenges. The revised guidelines, published in July 2018, became effective from 1 January 2019.

3. Convergence in the Continuum of Supervision, Recovery, and Resolution

• The EBA has focused on establishing a continuum between ongoing supervision, recovery, and resolution, which is a relatively new concept under the BRRD.

• Key areas of focus during 2018 bilateral convergence visits included:

  • Recovery planning for less significant institutions (LSIs)
  • Selection and calibration of recovery indicators
  • Application of early intervention measures
  • Determination of failing or likely to fail (FoLTF) status
  • Cooperation between competent and resolution authorities

• The EBA observed that while many authorities have developed internal procedures, there is still room for improvement, particularly in ensuring all LSIs have recovery plans and in the selection of recovery indicators.

• A feedback loop was established to inform future EBA policy developments.

4. Monitoring of Supervisory Colleges

• The EBA monitors supervisory colleges to ensure consistent application of the Single Rulebook across cross-border institutions.
• In 2018, the report on supervisory colleges focused on the quality of deliverables and the consistency of application.
• The EBA also participated in the peer review of passport notifications and conducted desk-based reviews to identify commonalities and divergences in supervisory practices.

5. EBA Policy Work

• The EBA revised several key guidelines in 2018, including:

  • SREP Guidelines
  • IRRBB (Interest Rate Risk in the Banking Book) Guidelines
  • Guidelines on institutions' stress testing
  • Supervisory risk taxonomy

• It also updated guidelines on internal governance, 'fit and proper' requirements, and outsourcing.

6. Training Activities

• The EBA expanded its training program in 2018, offering 27 training events to 1687 participants.
• Online modules and webinars played a significant role in increasing accessibility and engagement.
• In 2019, the EBA will continue to extend its training program and improve its online learning platform.

7. 2019 Convergence Plan

• In 2019, the EBA will:
  • Review the approach of competent authorities to key supervisory topics.
  • Focus on areas where recent EBA policy products have been developed.
  • Continue to engage with supervisory colleges to promote consistent application of the Single Rulebook.
  • Monitor the effective implementation of its policy products and guidelines.

Conclusion

The EBA remains committed to fostering supervisory convergence through a combination of regulatory guidance, training, and monitoring. The Single Rulebook is the foundation of this effort, and its consistent application across the EU is a core business for the EBA. The 2019 convergence plan will build on the progress made in 2018, focusing on key supervisory topics and ensuring that all competent authorities comply with and implement EBA guidelines effectively.