EBA欧洲银行-EBA-ITS-2013-06-28JDs-on-institution-specific-prudential-requirements29_38页_697kb

EBA FINAL Draft Implementing Technical Standards on Joint Decisions for Institution-Specific Prudential Requirements

Core Content

The EBA Final Draft Implementing Technical Standards (ITS) outlines the procedures and processes for the joint decision-making on institution-specific prudential requirements under Article 113 of Directive 2013/36/EU. The aim is to ensure uniform application of the joint decision process across the European Union, particularly for capital and liquidity requirements, and to facilitate effective supervision of cross-border banking groups.

The standards apply to the consolidating supervisor and relevant competent authorities in a Member State, which are responsible for EU parent institutions, financial holding companies, or mixed financial holding companies. These standards cover both capital joint decisions and liquidity joint decisions, and they are based on the process described in the CRD (Capital Requirements Directive).

Main Points

1. Purpose and Scope

• The ITS ensures a consistent and uniform approach to joint decision-making on prudential requirements.
• It applies to the capital joint decision (Article 73 and 97) and liquidity joint decision (Article 86, 104(1)(a), and 105).
• The joint decision process must consider all institutions within the group, including those outside the EU.

2. Key Aspects of the Joint Decision Process

• Planning: A joint decision timetable is established, which is updated at least annually. It reflects the complexity and scope of the tasks involved.
• Information Exchange:
  • Relevant competent authorities must submit their SREP reports and liquidity risk assessment reports in a timely manner.
  • Common templates (Annexes 1, 2, 5, 6, 7, 8) are used to ensure uniformity and consistency in reporting.
• Group Risk and Liquidity Assessment Reports:
  • These reports are prepared by the consolidating supervisor using input from competent authorities and third-country supervisors.
  • They include contributions from all relevant parties and are used to support the joint decision process.
• Dialogue and Consensus:
  • The consolidating supervisor facilitates a dialogue with competent authorities to reconcile individual and group-level quantitative proposals.
  • This includes discussions on the required level of own funds and liquidity measures.
• Finalisation:
  • The group risk and liquidity risk assessment reports are finalised based on the dialogue outcomes.
  • Any material changes must be clearly explained.
• Communication:
  • The joint decision document is communicated to the group, including the parent institution and its subsidiaries.
  • The communication must be clear and transparent.
• Monitoring and Updates:
  • A process is established for monitoring the implementation of the joint decision.
  • Annual and exceptional updates (extraordinary update) are provided to ensure ongoing compliance and adaptability.
• Third Country Involvement:
  • The consolidating supervisor may involve third country supervisors in the group risk assessment process, provided that confidentiality requirements are met.
  • This is to ensure a comprehensive assessment of the group’s financial condition and risk profile.

3. Legal Basis

• The ITS is based on the Commission Implementing Regulation.
• It is informed by the EBA’s consultation process, including feedback from stakeholders and a cost-benefit analysis.
• The standards are aligned with the CRD and CRR (Capital Requirements Regulation) to ensure consistency with existing prudential frameworks.

Key Information

• Templates: Annexes 1, 2, 3, 4, 5, 6, 7, and 8 provide standardised formats for reporting and documentation.
• Timelines:
  • A four-month period is triggered upon submission of the group risk assessment report.
  • A one-month period is triggered upon submission of the group liquidity risk assessment report.
• Proportionality: The consolidating supervisor must reflect the relevance and significance of each institution in the group when preparing the reports.
• Transparency: The joint decision must be fully reasoned, and the communication process must ensure clarity and transparency for all stakeholders.
• Non-Joint Decision Process: In cases where no joint decision is reached, standards are provided to ensure that decisions are still made in a consistent and transparent manner, with appropriate involvement and communication.

Conclusion

The EBA Final Draft ITS establishes a structured, transparent, and consistent joint decision process for prudential requirements in cross-border banking groups. It promotes cooperation between supervisory authorities, ensures uniform application of prudential standards, and supports effective risk management and supervision. The use of common templates, clear timelines, and mechanisms for dialogue and communication are central to achieving these objectives.