EBA欧洲银行-EBA-BS-2013-055-Minutes-BoS-27-28-February-2013_14页_258kb

EBA BoS Meeting Summary - 27-28 February 2013

Meeting Overview

• Date: 27–28 February 2013
• Time: 13:30–19:00 on 27th, 8:30–16:00 on 28th
• Location: EBA, London
• Chairperson: Andrea Enria
• Key Participants: Voting members from 19 EEA countries, including new member Fabrizio Saccomanni (Italy), and representatives from the European Commission, ECB, ESRB, ESMA, EIOPA, and the European Court of Auditors.

Core Content and Main Issues Discussed

1. Opening and Approval of Agenda

• The agenda and draft minutes of the 5–6 December 2012 BoS meeting were approved.
• A representative from the Court of Auditors attended the meeting, except for the restricted session on 28th February.
• "Informa D&B Portugal Sociedade Unipessoal, Lda" was recognized as an External Credit Assessment Institution in Portugal by the Banco de Portugal.

2. Risks and Vulnerabilities

• Four key risk areas were identified: funding fragilities, fragmentation of the Single Market, confidence in banks, and asset quality/valuation concerns.
• The BoS agreed with the EBA staff and SCOP risk assessment and urged staff to proceed with the next risk report.
• Emphasis was placed on asset quality and policy actions, with the need to maintain the sovereign buffer.

3. EBA Recommendation on Core Tier 1 Capital Preservation

• The EBA December 2011 Recommendation was to be replaced with a new one for the transition to CRD IV/CRR.
• The BoS supported the current draft of the recommendation.
• Key decisions:
  • The link with stress tests will remain as per the current wording.
  • Exemptions will be handled on a case-by-case basis.
  • Monitoring templates will be streamlined, with a focus on simplicity and reusing ISG data.
  • Only CoCos issued before June 2012 can be part of the nominal buffer.
  • The reference date for capital calculation will remain June 2012.
  • The EBA will send a formal letter to ESRB regarding the sovereign buffer.

4. Stress Test Methodology Paper

• The BoS did not endorse the methodology at this stage but agreed on the process for discussing risk chapters with the industry.
• The EBA will start informal discussions with the industry in mid-March 2013.
• The draft report will include both options for the treatment of defaulted assets and securitisations.
• The EBA will conduct data collection starting in May 2013, possibly reducing the sample size to "European college banks".
• Coordination with the ECB is required for the sample selection.

5. Single Supervisory Handbook (SSH)

• The revised proposal for the SSH was presented, incorporating feedback from the February 2013 Management Board meeting and the December 2012 BoS meeting.
• The SSH will not be legally binding and will focus on supervisory best practices.
• A Steering Committee will be established, with members volunteering to join.
• A pilot exercise will be launched, with the first call scheduled for 18 March 2013.

6. Definition and Reporting of Encumbrance

• The BoS agreed to a 3-month consultation period for the draft consultation paper on asset encumbrance.
• A 5% threshold for encumbrance was discussed, with suggestions to include a minimum total assets threshold (e.g., 1 billion euros).
• Threshold calibration will occur during the consultation period, with a parallel questionnaire sent to national authorities.

7. Definition of Forbearance and NPL

• Common definitions for forbearance and non-performing loans were developed with SCARA.
• The BoS supported a harmonised definition for non-performing loans.
• Reporting on a country-by-country basis with aggregate data was preferred, with data on collateral to be included in the NPL template.
• The issue of trading book exposures was left open for further discussion.

8. Internal Working Method

• The BoS supported the EBA's internal processes and work practices.
• Flexibility in task management was encouraged, with involvement of technical experts and Standing Committees.
• The EBA will prepare a template for the results of the votes and make written procedure comments available to members only.

9. Bail-in and Supervisory Write-Down

• The EBA presented a non-paper on bail-in and its interplay with write-downs.
• The BoS expressed skepticism about forming a common supervisory position due to limited expertise.
• Members were invited to submit their views via written procedure, with the possibility of issuing a final document re-evaluated based on feedback.

10. Review of EBA Regulation

• The BoS was asked to assess issues raised in the review of the EBA Regulation, particularly in light of SSM developments.
• Comments from previous meetings were considered, and a discussion on governance arrangements was deferred.
• The BoS will submit its views via written procedure, with a revised paper to be presented at the next meeting.

11. Consumer Trends 2012 Report

• This agenda item was dropped and a corrected version will be submitted for approval via written procedure in the following week.

12. SCOP Draft Paper on Supervisory Structures

• The report provided an overview of national supervisory practices and challenges in the EEA.
• It was submitted for information only, with no formal approval required.

13. Draft Preliminary Budget 2014

• The budget was approved following the EBA Management Board's approval on 7 February 2013.

14. TCOR Work Plan

• The TCOR Work Plan was endorsed, with the following commitments:
  • Exceptions for SME and Residential mortgages will be handled on a case-by-case basis.
  • Rules of engagement for Home/Host supervisors will be clarified.
  • TCOR will share its work on Pillar 3 disclosure with the Transparency subgroup.
  • The SIGTB exercise will be extended to other IMM EU banks.

15. Joint Letter to Commission on Benchmarks

• A joint letter from ESMA, EBA, and EIOPA was approved by the BoS.
• The letter aimed to contribute to the Commission's forthcoming proposal on benchmark regulation.

16. Reports from Committees

• The BoS took note of reports from various committees without specific action.

17. A.o.B (Other Business)

• A written procedure was launched regarding two draft Regulatory Technical Standards:
  • Recovery Plans under the draft RRD Directive.
  • Conditions for assessing materiality of extensions and changes in internal approaches for risk calculations.

Key Decisions and Actions

• Asset Quality: Focus on monitoring and policy action, with no changes to the sovereign buffer.
• Stress Tests: Informal discussions with the industry in March 2013, data collection in May 2013.
• SSH: Not legally binding, with a Steering Committee and pilot exercise.
• Encumbrance Reporting: 3-month consultation period, with potential revisions to thresholds.
• TCOR: Endorsed work plan with specific actions for SME, residential mortgages, and collateral reporting.
• Benchmarks: Joint letter approved to support the Commission's proposal.
• Budget: Draft preliminary budget for 2014 was approved.
• Regulatory Technical Standards: Written procedure to finalize two consultation papers.

Next Steps

• Launch a call for volunteers for the SSH Steering Committee.
• Conduct informal discussions with the industry in March 2013.
• Prepare and circulate a list of "European college banks" for the stress test sample.
• Finalize and submit revised papers for further BoS review.
• Coordinate with the ECB on sample selection and data collection.
• Continue work on the EBA Regulation review and possible ESRB engagement.