EBA欧洲银行-EBA-BSG-2016-022-28Final-minutes-1804201629_8页_226kb

EBA Banking Stakeholder Group Meeting Summary – April 18, 2016

Core Content

The Banking Stakeholder Group (BSG) held its first meeting under the new composition on April 18, 2016, in London. The meeting was chaired by Andrea Enria, the EBA Chairperson, who proposed to postpone the election of the BSG Chairperson to the next meeting in June to allow for better understanding among members. The agenda covered a range of topics including organisational matters, general developments, the Leverage Ratio (LR) report, consultation papers, risk analysis, stress test updates, and consumer protection.

Main Topics and Key Points

1. Organisational and Functioning Issues

• BSG Functioning: EBA staff outlined the organisation and decision-making bodies of the EBA, including the role of the BSG and its support structures.
• Technical Working Groups: A BSG member suggested narrowing the scope of the three Technical Working Groups to make them more focused on specific topics.
• Consultation Practices: EBA staff explained the consultation process, including the 2016 Work Programme and the timeline for the 2017 Work Programme, which would be updated after the EU budgetary authorities’ decision.
• Pillar 2 Approach: The EBA intends to conduct an annual benchmarking review of the Pillar 2 process.
• Reimbursement Policy: EBA staff presented the policy on reimbursement for BSG members, highlighting eligibility criteria.

2. Leverage Ratio Report

• Background and Rationale: EBA staff introduced the background and rationale for the Leverage Ratio (LR) report.
• Calibration Level: The preliminary analysis suggested a 3% calibration level for LR would be consistent with the objective of a "backstop" measure.
• Risk Assessment: The report indicated that larger and more complex credit institutions might have elevated exposure to Risk of Excessive Leverage (R.E.L), but the increase in risk-taking was moderate.
• Consumer Impact: Some BSG members raised concerns about the potential negative impact of a higher LR on consumers.
• Final Report: The final report is scheduled for submission to the European Commission in July 2016.

3. Consultation Papers and General Developments

• Recent Consultation Papers: The EBA Chairperson updated the group on Consultation Papers not yet addressed by the previous BSG composition, including those on modified duration and credit valuation adjustment (CVA) proxy spread.
• Internal Models: The EBA is reviewing proposals from the Basel Committee on Banking Supervision.
• MREL and SREP: The EBA is conducting an interim impact assessment on the Minimum Requirements for own funds and Eligible Liabilities (MREL) under the Bank Recovery and Resolution Directive (BRRD).
• Regulatory Flexibility: The EBA is working on proportionality aspects of the regulatory framework as per the European Commission's Call for Evidence.
• Panama Papers: The EBA has acquired new mandates related to payments due to the endorsement of the Payment Services Directive II (PSD II).

4. Risk and Vulnerabilities in the EU Banking Sector

• Asset Quality: Non-performing loans (NPLs) are decreasing but remain high across the EU with significant dispersion by size and country.
• Profitability: Banks' profitability remains subdued, with concerns raised about geographical heterogeneity.
• Low Interest Rate Environment: Some BSG members questioned the impact of low interest rates on profitability, though others felt this explanation was insufficient.

5. 2016 Stress Test Exercise

• Key Features: The EBA Director of Oversight outlined the main features and methodological changes of the 2016 EU-wide stress test.
• Results Timeline: Results are expected to be published in early Q3 2016.
• SREP Linkage: The EBA clarified that the stress test results should inform, but not mechanistically determine, the Supervisory Review and Evaluation Process (SREP).
• Conduct and Liquidity Risks: BSG members raised concerns about transparency in conduct risk and the gap between stress test and SREP disclosure timelines. Liquidity stress tests are conducted via ILAPP/SREP.

6. Consumer Protection, Financial Innovation, and Payments

• Consumer Protection Day: The next joint ESAs Consumer Protection Day is scheduled for September 16, 2016, in Paris. BSG members called for greater involvement of CAs and central banks.
• Innovative Uses of Consumer Data: EBA staff presented a Discussion Paper on the topic, which will be published in Q2 2016.
• Mandates under IFR and PSD2: The EBA updated on its work under the Interchange Fee Regulation (IFR) and Payment Services Directive 2 (PSD2).

7. Other EBA Work

• Disclosure of Unencumbered Assets: The EBA plans to launch a Consultation Paper on the draft Regulatory Technical Standards (RTS) for disclosure of unencumbered assets, seeking feedback on topics such as frequency of disclosure, data sensitivity, and consistency with other requirements like the Liquidity Coverage Ratio (LCR).

Key Participants

EBA Staff

• Adam Farkas – EBA Executive Director
• Piers Haben – Director of Oversight
• Philippe Allard, Corinne Kaufman, Dirk Haubrich, Mario Quagliariello, Rita Bairros, Cédric Coraillon-Parquet, Laura Diez Perez, Tea Turcaniova, Gerbert van der Kamp, John Wu

Next Steps and Deadlines

• Next BSG Meeting: June 22, 2016
• Joint Meeting with EBA BoS: June 21, 2016
• Topics for Joint Meeting: Virtual currencies, MREL, and Pillar II issues related to stress test outcomes.