EBA欧洲银行-EBA-BS-2019-010-28Final-minutes-BoS-meeting-11-12-December-201829_15页_401kb

EBA Board of Supervisors Meeting Summary – December 2018

Core Content Overview

The EBA Board of Supervisors (BoS) held a meeting on 11 and 12 December 2018 in London, focusing on several key topics including the selection of a new EBA Chairperson, risk and vulnerability updates, reports on structured deposits and crypto-assets, and discussions on the 2020 Single Programming Document and Brexit-related issues. The meeting also covered the development of guidelines on ICT risk management, STS criteria interpretation, and the relocation of the EBA to Paris.

Main Agenda Items and Key Points

1. Welcome and Approval of Agenda and Minutes

• The EBA Chairperson welcomed participants and the BoS approved the agenda and minutes from the previous meeting (23–24 October).
• The BoS Away Day was scheduled for 9–10 July 2019, but the location had not yet been decided.
• The BoS approved the minutes by consensus.

2. Open Selection Procedure for EBA Chairperson

• The EBA Chairperson would step down from his role, necessitating a new selection process.
• A selection committee of 2 BoS members, 2 alternates, and a Commission representative was established.
• The committee would screen applications, shortlist 6 candidates for pre-selection interviews, and then 3 for BoS interviews.
• The European Parliament’s involvement in the shortlisting process was not yet agreed upon.
• The BoS elected Korbinian Ibel (EU SSM) as the chair of the selection committee, with Helmutt Ettl (AT), Raimund Röseler (DE), and Maarten Gelderman (NL) as members and alternates respectively.

3. Update on Risk and Vulnerabilities in the EU

• CET1 ratio remained at 14.7% year-on-year, with high dispersion across countries.
• RoE was stable at 7.2%, but with significant variation.
• NPL ratio decreased by 94 bps to 3.4% in Q3 2018, driven by a EUR 131bn reduction in non-performing loans.
• Concerns were raised about MREL requirements under tightening market conditions.
• Lending trends showed increased activity in riskier segments, with competition from non-bank lenders.
• The BoS expressed vigilance on lending standards and margin pressures.

4. Report on IFRS9 Quantitative Impact Assessment – Follow-up

• The report was based on actual figures, not estimations.
• It covered post-implementation effects of IFRS9 on a representative sample of 54 banks in 20 EEA jurisdictions.
• The EBA planned to continue assessing indicators, monitor IFRS9 usage, and consider medium/long-term work on modelling aspects of IFRS9 implementation.
• The BoS approved the report by consensus.

5. Own Funds: Reclassification of Instruments and Grandfathering Provisions – Follow-up

• The BoS supported the publication of a Q&A document on reclassification of instruments, with a condition to clarify that notification obligations were supervisory expectations, not mandatory.
• The EBA would also send letters to UK authorities in line with the BoS's earlier decision.
• The report was approved for publication in early January 2019.

6. Report on the Cost and Past Performance of Structured Deposits

• The EBA was requested by the EC to provide a report on structured deposits, with limited data available from competent authorities.
• Only two CAs had provided relevant cost and performance data.
• The EBA proposed to improve future reports and coordinate with ESMA and EIOPA.
• The BoS approved the report for publication at the start of January 2019 and supported further discussion with the EC on report frequency.

7. AML Update

• The BoS was updated on the cooperation agreement between the ECB and AML/CFT CAs.
• The EBA's role was to coordinate and facilitate the exchange of information.
• The BoS approved the report by consensus and supported international collaboration on AML issues.

8. 2020 Single Programming Document

• The document outlines EBA’s planning activities and resource requirements from 2020 to 2022.
• It includes the ESAs review, AML work, and Sustainable Finance.
• The EBA would send the document to the Management Board for endorsement and to the BoS for approval in January 2019.
• The BoS supported the proposal and encouraged the EBA to monitor the potential impact of US financial regulation easing.

9. Draft Guidelines on ICT Risk Management – Consultation Paper

• The guidelines address FinTech Action Plan and PSD2 mandates.
• They apply to all institutions under the EBA’s remit and will repeal the Guidelines on security measures.
• The BoS approved the consultation paper by consensus and requested feedback on the guidelines during the consultation period.

10. Draft Guidelines on Harmonised Interpretation and Application of STS Criteria – Final Report

• The guidelines are intended for STS securitisation and will be applied from 15 May 2019.
• A compliance procedure was proposed, where EBA competent authorities would coordinate with national counterparts and submit a single compliance form.
• The BoS supported the guidelines and the proposed application date, with a note to include the STS framework application date (1 January 2019) in the press release.

11. Report and Advice to the European Commission on Crypto-Assets

• The EBA report focuses on the regulatory perimeter and AML/CFT requirements for crypto-assets.
• ESMA’s report deals with MiFID and securities law.
• The EBA proposed a common monitoring template based on BCBS guidelines.
• The BoS approved the report and supported international collaboration with BCBS and FATF.

12. Sandboxes and Innovation Hubs – Follow-up Discussion

• The BoS supported the idea of an EU network of innovation facilitators.
• The network would not alter national standards but would promote cooperation and sharing of best practices.
• The BoS requested flexibility to avoid overburdening institutions and highlighted the risk of regulatory arbitrage.

13. Update on EBA Relocation to Paris

• The EBA is in the process of relocating to Paris, with VAT exemption as a key issue.
• The new premises are expected to be ready by mid-May 2019, after IT and AV installation.
• The data centre migration is ongoing, with full migration expected by January 2019.
• All meetings (BoS, MB, public hearings) will be held in Paris after March 2019.
• The EC is aware of Brexit-related challenges and is consulting on the impact.

14. Brexit Discussion

• Conducted in a restricted setting (EU 27).

15. Stress Test – Decision Not to Carry Out EU-wide Stress Test in 2019

• The BoS decided not to conduct an EU-wide stress test in 2019.
• Lessons learned from the 2018 exercise included:
  • Good coordination and communication.
  • Challenges in methodology (especially NII).
  • Complex templates and tight SREP integration.
• Short-term improvements for 2020 include:
  • Implementing FAQs.
  • Simplifying templates.
  • Considering a top-down approach for quality assurance.
• Long-term improvements will be explored by the STTF, focusing on methodology design and Pillar 2 guidance.

Key Outcomes and Decisions

• EBA Chairperson Selection: A selection committee was established with the EBA Chairperson stepping down, and the BoS approved the committee members.
• Risk and Vulnerabilities: CET1 and RoE remained stable, while NPLs improved. Vigilance on lending standards and MREL challenges was noted.
• IFRS9 Report: Approved for publication, with a focus on post-implementation effects and future monitoring.
• Structured Deposits Report: Approved for publication in January 2019, with support for international collaboration.
• AML Cooperation Agreement: Approved by the BoS, with a call for enhanced monitoring and coordination.
• ICT Risk Guidelines: Approved for consultation, with a focus on aligning definitions and ensuring proportionality.
• STS Guidelines: Approved for application from 15 May 2019, with a compliance procedure involving national CAs.
• Crypto-Asset Monitoring: A common monitoring template was proposed, and the BoS supported international collaboration.
• Innovation Network: The BoS supported the idea of a network for innovation facilitators, emphasizing cooperation over standardization.
• EBA Relocation: Expected to be finalized in Q1 2019, with full relocation to Paris by mid-May 2019.
• Stress Test Decision: No EU-wide stress test in 2019, with the STTF tasked to improve methodology for 2020.

Next Steps

• The EBA will publish the Q&A on reclassification and coordinate with ESMA and EIOPA.
• The EBA will develop a common monitoring template for crypto-assets in 2019.
• The STTF will prepare a methodology proposal for the 2020 stress test by February 2019.
• The EBA will send the 2020 Single Programming Document to the Management Board and BoS in January 2019.
• The EBA will continue its international collaboration on crypto-assets and AML issues.