EBA欧洲银行-EBA-BS-2019-176-28Final-minutes-BoS-meeting-16-17-April-201929_15页_433kb

EBA Board of Supervisors Meeting Summary - April 2019

Core Content

The EBA Board of Supervisors (BoS) convened in Paris, hosted by Banque de France, on 16–17 April 2019. The meeting covered a range of topics, including the approval of previous minutes, appointments to the Management Board, updates on EU banking risks, the 2020 Stress Test, legal recommendations on breaches of Union Law, Brexit developments, EBA's relocation, Basel III Call for Advice, annual report on supervisory colleges, IFRS benchmarking, and future priorities for 2020.

Main Points and Key Information

Agenda Item 1: Welcome and Approval of Agenda and Minutes

• The Interim Chairperson welcomed participants and thanked Banque de France for hosting the meeting.
• The BoS approved the agenda and minutes from the previous meeting (19–20 February 2019).
• A new Bulgarian Voting Member and a new Polish High-Level Alternate were welcomed.
• The BoS Away Day was scheduled for 9–10 July 2019, to be hosted by the Bank of Greece.

Agenda Item 2: Appointment of Members of the Management Board

• Mr. Federico Signorini vacated his position after completing his second term.
• Mr. Jesper Berg expressed intent to serve a second term.
• Mr. Maarten Gelderman was the only candidate nominated for a first term.
• The BoS approved the appointments of Berg and Gelderman.

Agenda Item 3: Update on Risk and Vulnerabilities in the EU

• Banks maintained adequate solvency levels, with a CET1 ratio of 14.4% in Q4 2018.
• Asset quality improved, but profitability remained low, with cost-to-income ratios unchanged.
• Primary markets were active in Q1 2019, especially in the covered bond segment.
• The BoS supported the transparency exercise but agreed to exclude the liabilities template for the current exercise.

Agenda Item 4: Transparency Exercise 2019

• The exercise would transition from semi-annual to quarterly reporting.
• Four new templates were proposed: Key metrics, RWAs, Total assets, and Total liabilities.
• UK institutions were excluded, replaced by their subsidiaries in the EU.
• The EBA would liaise with UK NCA before finalizing the sample.
• The BoS agreed to proceed with the transparency package, excluding the liabilities template.

Agenda Item 5: 2020 Stress Test Preparation

• The sample included 52 banks, covering ~70% of the Euro area banking sector.
• The timeline was set for launch at the end of January 2020 and results by end of July.
• The BoS supported the exclusion of two banks due to their business models.
• Two alternatives for reporting the reference rate for sight deposits were agreed to be further explored.
• The EBA confirmed the need to frontload work to reduce summer workload and to refine the methodology for the next BoS meeting.

Agenda Item 6: Consultation Paper on SA-CCR Supervisory Delta and Mapping

• The EBA developed two RTSs for the SA-CCR framework, based on feedback from the December 2017 Discussion Paper.
• The first step focused on identifying material risk drivers for derivative transactions.
• The second step aimed to adjust the delta formula for negative interest rates.
• The EBA would also identify methods to determine long or short positions in risk drivers.
• The EC representative emphasized the need to align with the Basel agreement and requested further analysis on the output floor.

Agenda Item 7: Breach of Union Law – EBA Recommendation

• The EBA investigated breaches of Union Law by DFSA and EFSA related to Danske Bank and its Estonian branch.
• Four breaches were identified under various directives.
• The BoS did not approve the recommendation due to concerns over legal analysis, procedural timeframe, and the focus on past failures rather than supervisory improvement.

Agenda Item 8: Brexit Update

• The discussion was held in a restricted setting (EU 27).

Agenda Item 9: EBA Relocation to Paris

• The EBA and French government signed agreements in March 2019.
• The relocation was planned in two stages, with full operations in Paris starting on 3 June 2019.
• The new Chairperson was expected to start on 2 May.
• The IT migration to a new data center in Hamburg was completed successfully.

Agenda Item 10: Basel III Call for Advice (QIS)

• The EBA presented preliminary results and policy recommendations.
• The output floor was a key topic, with mixed views on its application at solo vs. consolidated levels.
• The BoS requested further clarification and analysis on the two approaches.
• A public hearing was planned for July, with the final report expected in July.

Agenda Item 11: Annual Report on Supervisory Colleges (2018 Data)

• The report focused on the quality of deliverables from supervisory colleges rather than procedural aspects.
• The BoS agreed to add a reference to AML colleges and publish the report.

Agenda Item 12: IFRS Benchmarking Exercise

• The EBA initiated a task force to work on IFRS 9 modeling aspects.
• The Head of Unit LILLAC outlined objectives, timelines, and next steps, including data templates and stakeholder meetings.

Agenda Item 13: Future Priorities – Work Programme 2020

• The BoS defined strategic priorities for 2020, aligned with the Single Programming Document (SPD) from 2019.
• Priority was given to Level 2 legislative requirements, including AML, and post-Brexit cooperation with UK authorities.
• The EBA will update the Work Programme with references to ESA review mandates.

Agenda Item 14: EBA Opinion on Passport Notifications under PSD2, EMD, and AMLD

• The opinion aimed to provide legal clarity on when agents and distributors are considered "establishments."
• The BoS supported the opinion, though some members requested more clarity on contract termination dates and notification procedures.

Agenda Item 15: AoB (Audit of the EU-wide Stress Test and Call for Advice on National Loan Enforcement Frameworks)

• The EBA updated the BoS on the audit by the European Court of Auditors.
• A Call for Advice on national loan enforcement frameworks was also discussed.