EBA欧洲银行-Board-of-Supervisors-meeting18-September-2018_12页_268kb

EBA Board of Supervisors Meeting – Final Minutes (18 September 2018)

Core Content

The EBA Board of Supervisors held a meeting in London on 18 September 2018, covering a range of topics including the Financial Sector Assessment Programme (FSAP), stress tests, the relocation to Paris, and various regulatory and supervisory updates. The meeting was structured into multiple agenda items, each addressing specific issues related to banking regulation, risk management, and operational challenges in the European Union.

Main Agenda Items and Key Points

1. Welcome and Approval of the Agenda

• The EBA Chairperson, Andrea Enria, welcomed participants.
• The agenda was approved.
• Membership changes were announced: Charlotte Gerken (UK), Maarten Gelderman and Sandra Wesseling (Netherlands), and Linette Field (ECB) were added or replaced.

2. Findings of the Euro Area FSAP

• The IMF staff presented the main findings of the euro area FSAP.
• Key risks identified: weak bank profitability, Brexit challenges, cyber risks, and systemic vulnerabilities.
• The resolution framework was assessed as needing enhancement, particularly in liquidity support and crisis management.
• Stress testing was noted as an area requiring more efficient processes.
• The EBA Chairperson supported the IMF recommendations and called for prioritisation of issues.

3. Appointment of a New Management Board Member

• A vacancy in the Management Board was filled by consensus.
• Jesús Saurinas was elected as a new member for a first term of 2.5 years.

4. Appointment of New Chairs for SCRePol, SCARA, and TFIS

• Gerry Cross was elected as co-chair of SCRePol.
• Andrea Pilati as chair of SCARA.
• Pedro Duarte Neves as chair of TFIS.

5. Update on Risks and Vulnerabilities, NPLs Development

• CET1 ratios were stable, but net interest margins continued to decline.
• Total assets had decreased since 2015, while loans increased.
• NPLs declined over the past three years but remained unevenly distributed.
• The EBA is working on an EU transaction platform to improve secondary markets for NPLs.
• Concerns were raised about risks from real estate price increases, emerging markets, and funding issues.
• A revised version of the NPL monitoring report was to be submitted for publication in December.

6. Stress Test Update

• The stress test update was conducted in a restricted setting.

7. Update on EBA's Relocation to Paris

• The relocation process faced delays due to legislative issues.
• The exclusivity clause with the landlord was to be extended.
• A reserve list for core jobs was established to ensure continuity.
• Data migration from the UK was pending approval of the amended budget.

8. Banking Stakeholder Group (BSG) Renewal

• The BSG renewal process was discussed, focusing on diversity and representation.
• The draft list of members was approved.

9. Monitoring of LCR Implementation in the EU

• The LCR monitoring report was discussed, highlighting the need for regular publication.
• The report was based on ITS data and covered all EU countries.
• GSILs and O-SILs had lower LCR than other banks.
• Concerns were raised about the legal strength of the report and the need for further clarification.
• The report would be revised and published in December, with a cautious approach to sensitive issues.

10. Key Findings from Basel Capital and LCR Monitoring Reports

• Preliminary results on Basel III reforms and capital shortfalls were presented.
• The LCR was generally above the minimum requirements, but there were issues with USD exposure.
• The Call for Advice had low participation, and CAs were urged to include intermediaries.
• A centralised process for data collection was proposed, with collaboration from the TFIS.

11. Draft Terms of Reference for Peer Review on RTS on Identified Staff

• The peer review aimed to assess CAs' supervisory practices on identifying staff with material risk impact.
• The three-year reference period was maintained to allow for trend analysis.
• The process would not involve direct engagement with banks, but rather through CAs.
• The EBA aimed to ensure a balanced approach and avoid unnecessary changes to bank practices.
• The final terms of reference were agreed upon.

12. Review/Approval of Q&A 3173

• The Q&A addressed the legal definition of speculative immovable property financing.
• The EBA proposed an amended response, but it was not widely accepted.
• The original answer submitted for written procedure was to be published due to lack of consensus.

13. Brexit-Related Issues

• Discussion was held in a restricted setting involving EU 27 members.

14. Anti-Money Laundering (AML) Legislative Proposal

• The European Commission proposed changes to the EBA Founding Regulation to enhance AML capabilities.
• The EBA would be granted new powers to request investigations and enforce sanctions.
• The proposal aimed to improve the EU’s AML framework and strengthen the EBA's international role.

Key Information and Outcomes

• FSAP Findings: Highlighted systemic risks, including weak profitability and unresolved resolution issues.
• NPL Reduction: Progress varied across the EU, with NPLs declining but unevenly. The EBA is promoting an EU transaction platform.
• LCR Monitoring: Emphasised the need for regular reporting and stakeholder consultation, with a revised version planned for December.
• Relocation to Paris: Delayed due to legislative delays, with potential impact on the move timeline.
• Peer Review on Identified Staff: Focused on CAs’ supervisory practices, with a three-year reference period and limited data collection.
• Q&A 3173: Published the original response due to lack of consensus on the amended version.
• AML Proposal: Supported by the European Commission, aiming to enhance EBA's role in AML supervision.

Participants and Observers

• Voting Members: Included representatives from all EU member states, with some acting as high-level alternates.
• Non-voting Members: SRB, SSM, European Commission, EIOPA, ESMA, ESRB, and EFTA Surveillance Authority.
• EBA Staff: Various directors and experts were present to provide updates and respond to questions.

Conclusion

The meeting concluded with agreement on several key decisions, including the appointment of new board members and chairs, the publication of LCR and capital monitoring reports, and the continuation of the peer review process. The EBA reaffirmed its commitment to enhancing regulatory frameworks and addressing systemic risks in the European banking sector.