EBA欧洲银行-2013-10-22-AE-opening-remarks-EBA-Proportionality-workshop_3页_173kb

EBA Proportionality Workshop Summary

Core Content

The EBA proportionality workshop, held in London on 22 October 2013, was introduced by Andrea Enria, Chairperson of the EBA. The event aimed to foster dialogue on the implementation of proportionality in European financial regulations, ensuring that rules are effective, targeted, and do not stifle innovation or enterprise.

Main Points

1. Role of the EBA in Proportionality

• The EBA is tasked with delivering technical standards based on the mandate provided by EU policy makers.
• It has increasing freedom to apply proportionality in its rule-making processes.
• Proportionality is not about creating a two-tier system (single rulebook vs. national rulebook), but about allowing flexibility for smaller or less complex institutions.
• The EBA acknowledges that all financial actors are interconnected, and even local banks can have significant spillover effects in the Single Market.

2. Examples of Proportionality in Practice

• Own Funds Standards:
  • Introduced a materiality exemption threshold to allow a structure-based approach for indirect holdings.
  • Differentiated requirements based on business models, with specific provisions for cooperative banks.
• Supervisory Reporting:
  • Some requirements apply only to a subset of banks using internal models.
  • Certain data points are not required for all institutions, but only for those with significant risk exposure or activities in specific areas.

3. Need for Pragmatism

• Proportionality in technical standards is not straightforward, especially when addressing different business models.
• The EBA is conducting an impact assessment on new liquidity standards and their effect on various business models.
• Business models are evolving, and regulations must be flexible enough to accommodate these changes.
• The EBA emphasizes the need for precise and well-founded standards to prevent regulatory arbitrage and loopholes.

4. Importance of Open and Honest Dialogue

• The workshop was organized to address criticisms that the EBA does not take proportionality seriously.
• It aims to bring together key industry stakeholders, national supervisory authorities, and EBA staff to discuss and refine the approach to proportionality.
• The EBA encourages participants to voice concerns and provide input on how to better reflect the diversity of institutions in the rulebook.

5. Legal and Practical Constraints

• The EBA operates within the EU legal system, where proportionality is a central principle.
• Proposals for proportionality must be supported by evidence and impact assessments.
• Stakeholders are encouraged to provide qualitative or quantitative evidence to justify regulatory proposals, rather than general statements about burdens.

Key Information

• Proportionality is a key principle in the EBA’s work, aimed at tailoring regulations to the needs and capacities of different institutions.
• The EBA is not authorized to change Level 1 regulations; its role is to implement them in a proportionate manner.
• The financial crisis has shown that even smaller institutions can have systemic implications, reinforcing the need for a unified regulatory framework.
• The workshop is a platform for constructive engagement and aims to produce concrete outcomes.
• The EBA encourages collaboration and realistic expectations from stakeholders to ensure effective and fair regulation.

Conclusion

Andrea Enria emphasized that proportionality is not about reducing regulatory rigor but about applying it in a way that is appropriate to the size, business model, and risk profile of institutions. The EBA is committed to working with stakeholders to develop a single rulebook that is both effective and adaptable. The workshop serves as an important step in this ongoing process, promoting transparency, pragmatism, and collaboration.