EBA欧洲银行-cebs1092_AnnualReport2006_000_75页_1mb

Annual Report 2006 Summary

Core Content

The Annual Report 2006 of the Committee of European Banking Supervisors (CEBS) outlines the key activities and achievements of the Committee during the year, focusing on its three main tasks: providing regulatory advice to the European Commission, promoting convergence of supervisory practices, and enhancing cooperation and information exchange among banking supervisors in the EU and EEA.

Main Viewpoints and Key Information

1. Shift from Design to Delivery

CEBS moved from developing regulatory frameworks to implementing and applying them in daily supervisory practices. This shift emphasized practical application and convergence of supervisory approaches across the EU and EEA.

• Operational Networking project was launched to identify and address practical issues in cross-border banking supervision.
• CEBS aimed to ensure that its guidelines are effectively applied by developing tools like implementation seminars, case studies, and peer review mechanisms.

2. Regulatory Advice to the Commission

CEBS provided significant technical input to the Commission on various aspects of banking regulation, particularly in the context of the Capital Requirements Directive (CRD).

• Quantitative Impact Study (QIS 5):

  • Conducted in 2005, it assessed the impact of the CRD on minimum regulatory capital requirements.
  • The study showed that the average required capital would decrease under the CRD due to the use of more sophisticated risk measurement techniques.
  • The results were aligned with the Basel Committee’s findings, supporting the decision not to revise the scaling factor.

• Call for Advice on Own Funds:

  • CEBS published surveys on national implementation and market trends in capital instruments.
  • Identified commonalities and differences in the treatment of hybrid instruments, participations, and dividends.
  • Aimed to develop a common understanding of regulatory capital quality and benchmarks for convergence.

• Call for Advice on Large Exposures:

  • CEBS conducted a stock take of supervisory practices and consulted with the industry.
  • Noted commonality on core issues but identified divergences in definitions, reporting frequency, and national discretions.

• Cross-border Consolidation:

  • CEBS provided technical advice on the procedures for mergers and acquisitions under the CRD.
  • The Commission proposed amendments to the legal texts, which were under discussion in the European Parliament.

• Equivalence of US and Swiss Supervision:

  • CEBS assessed the equivalence of US and Swiss supervision systems.
  • The findings supported the need for harmonisation to ensure a level playing field.

3. Convergence of Supervisory Practices

CEBS made progress in developing a common European framework for supervisory disclosure, which allows for the comparison of national approaches to the CRD.

• Supervisory Disclosure Framework:

  • A structured approach to disclose supervisory data.
  • CEBS' website will serve as a platform for comparative analysis.

• Supervisory Review Process:

  • Developed technical annexes on concentration risk, stress testing, and interest rate risk in the banking book.
  • These tools aim to support consistent implementation of the CRD and improve supervisory practices.

• Outsourcing Guidelines:

  • Finalised guidelines on outsourcing, ensuring consistency across sectors.
  • Collaborated with CESR and CEIOPS to align supervisory guidance.

• Common Reporting Frameworks:

  • Updated COREP/FINREP guidelines.
  • Developed XBLR Templates for reporting.

• Peer Review and Training:

  • CEBS explored peer review mechanisms to ease convergence.
  • Organised training programmes and staff exchanges to foster a common supervisory culture.

4. Cooperation and Information Exchange

CEBS intensified cooperation with other Lamfalussy committees (CEIOPS and CESR) through the 3L3 initiative.

• Joint Work on Financial Conglomerates:

  • A Joint Task Force on Capital was established to compare capital requirements across banking, insurance, and investment sectors.
  • Identified key differences in hybrid instruments, deductions, revaluation reserves, and calculation methods.

• Information Exchange:

  • CEBS engaged in internal implementation seminars and discussions with external credit assessment institutions.
  • Continued to build relationships with third countries through visits and participation in international forums.

• Crisis Management:

  • Finalised guidelines on crisis management, though not subject to public consultation due to their sensitive nature.
  • The work was based on lessons learned from a crisis management exercise involving the MoU between financial authorities.

5. Assessment and Methodology

CEBS developed a methodology for self-assessment of its work in technical areas, in line with its public commitment to evaluate the impact and progress of its guidelines.

• A survey and questionnaire were used to gather input from stakeholders, including national supervisors and market participants.
• The results will inform the 2007 review of the Lamfalussy framework by the Inter-Institutional Monitoring Group (IIMG) and Financial Services Committee (FSC).

Conclusion

The 2006 Annual Report highlights CEBS' transition from designing regulatory frameworks to delivering them through practical tools and cooperation. It underscores the importance of convergence, transparency, and cooperation in ensuring a consistent and effective supervisory environment across the EU and EEA. CEBS remains committed to enhancing the Single Market and promoting good supervisory practices through ongoing dialogue, training, and technical guidance.