EBA欧洲银行-EBA-BS-2016-075rev1-28Final-Minutes-BoS-04-February-201629_12页_366kb

EBA Board of Supervisors – Final Minutes Summary

Core Content Overview

The EBA Board of Supervisors (BoS) meeting on 4 February 2016 in London covered a range of topics, including membership changes, contract renewals, stress test methodologies, transparency exercises, and regulatory guidelines. The meeting concluded with the approval of several key documents and proposals, reflecting the BoS's role in overseeing the EBA's regulatory activities and ensuring alignment with EU banking policies.

Key Agenda Items and Outcomes

1. Membership Changes

• Belgian National Bank: Mr. Jo Swyngedouw replaced Mr. Mathias Dewatripont.
• Latvian Financial and Capital Market Commission: Ms. Jelena Lebedeva replaced Ms. Liga Kleinberga as alternate.
• Liechtenstein’s Financial Markets Authority: Mr. Patrick Bont became the new observer, and Mr. Heinz Konzett was confirmed as the alternate observer.

2. Contract Extension and Upgrade

• The alternate Chairperson proposed upgrading the contract grading for the Chair and Executive Director, in line with the Guidelines on Staff Policy (ADMIN C(2005)5304).
• The BoS approved the proposal, effective from the start of the second mandate of the Chair and Executive Director.
• The EBA 2016 establishment plan included this upgrade.

3. Banking Stakeholder Group (BSG) Selection

• A shortlist of BSG candidates was presented, with a balanced representation across stakeholder categories, including geographical and gender diversity.
• A reserve list was also provided in case of unavailability.
• The BoS approved the shortlist and reserve list.

4. Risks and Vulnerabilities Update

• The EBA Director of Oversight presented an overview of risks, highlighting:
  • Risk Dashboard: Improved capital ratios but subdued profitability.
  • Market Volatility: Rising yields and spreads for AT1 debt, influenced by low interest rates and uncertainty.
  • MDA Calculations: Concerns about regulatory uncertainty and the need for clarity.
• The BoS agreed to reduce the frequency of EBA Risk Reports to one annually.
• They also approved a proposal to align the sample of banks in the transparency exercise with the risk assessment report.

5. EU-wide 2016 Stress Test Methodology

• A full package for the stress test (methodology, macroeconomic scenario, risk-type specific scenarios, and quality assurance manual) would be submitted for written approval by the BoS.
• The BoS approved a two-notch downgrade for net interest income (NII), despite concerns about reduced conservatism.
• The ECB presented the adverse macroeconomic scenario approved by the ESRB General Board on 3 February.
• The EBA emphasized the need for a formal FAQ process in 2016, following lessons from 2015.

6. Lessons from the 2015 Transparency Exercise

• The EBA published an internal report on errors in CET1 ratio data and proposed improvements:
  • Ensure data correctness before publication.
  • Enhance public transparency.
  • Improve governance in reporting processes.
• The BoS agreed to the recommendations on data review and endorsed the report for publication.
• They decided not to implement the recommendation on the reporting Q&A process and requested a review by end-2017.

7. CRDIV-CRR/Basel III Report

• The EBA presented the 9th Monitoring Report on CRDIV-CRR/Basel III as of June 2015.
• The BoS endorsed the report and agreed to publish it simultaneously with the BCBS report.
• Some members expressed concerns about data stability and the risk of misinterpretation.

8. Draft RTS on Additional Collateral Outflows for Derivative Contracts

• The Commission had not endorsed the draft RTS, preferring alignment with BCBS approaches.
• The BoS supported resubmitting the draft RTS in line with the Commission's suggestions.
• The EBA would liaise with the Commission to clarify the resubmission terms.

9. Final Draft ITS on External Credit Assessments for Securitisation

• The EBA proposed guidelines for mapping ECAI credit assessments in securitisation.
• The BoS adopted the final draft ITS, with some suggestions for a monitoring framework and quantitative consistency.

10. SME Lending Report

• The EBA presented a report on SME lending and riskiness, including a capital discount for SMEs under Article 501 of Regulation (EU) No 575/2013.
• The BoS agreed with the report and requested amendments based on member comments.
• A roundtable with industry was planned to discuss the report before final submission to the Commission.

11. Guidelines on Cooperation Agreements between DGS

• The EBA proposed guidelines to improve cooperation between deposit guarantee schemes.
• The BoS adopted the guidelines, emphasizing the need for clarity in responsibilities and roles.

12. Standard Templates for AT1 Issuances

• The EBA developed standardised terms and conditions for AT1 issuances, aiming for harmonisation.
• The BoS praised the work and agreed to discuss the templates in a roundtable by end-February.

13. Reports from Standing Committees

• The BoS reviewed and took note of reports from the Standing Committees on Oversight and Practices (SCOP) and others.

14. SSM Stance on Branch Supervision

• The SSM representative outlined a stance on supervision of branches from EEA countries, emphasizing reciprocity and proportionality based on risk and systemic significance.
• The BoS welcomed the paper and agreed to further discussion, with SCOP to prepare for it.

Participants and Roles

• Chairperson: Andrea Enria
• Voting Members: Representatives from 28 EU countries, including Austria, Belgium, Bulgaria, Croatia, Cyprus, etc.
• Non-voting Members:
  • SSM: Korbinian Ibel
  • European Commission: Mario Nava
  • EIOPA: Not specified
  • ESMA: Verena Ross
  • ESRB: Not specified
• Observers:
  • Iceland: Jon Thor Sturluson
  • Liechtenstein: Heinz Konzett
  • Norway: Morten Baltzersen
• EBA Staff:
  • Executive Director: Adam Farkas
  • Director of Oversight: Piers Haben
  • Director of Regulation: Isabelle Vaillant
  • Other staff members: Slavka Eley, Mario Quagliariello, Delphine Reymondon, Lars Overby, etc.

Conclusion

The BoS meeting concluded with the approval of several key proposals and reports, including the SME lending report, the CRDIV-CRR/Basel III report, and the final draft ITS on external credit assessments. The BoS also supported the resubmission of the draft RTS on collateral outflows and agreed to further discussions on the SSM stance on branch supervision. The meeting highlighted the importance of clarity, consistency, and transparency in regulatory processes.