EBA欧洲银行-EBA-BS-2011-159-PUBLIC-EBA-telco-minutes-BoS-20-October2011_2页_201kb

EBA Board of Supervisors Teleconference Summary

Core Content

On 20 October 2011, the EBA Board of Supervisors held a teleconference to discuss various aspects of the capital buffer and related regulatory matters. The meeting focused on the application of haircuts, the inclusion of hybrid instruments, and the approach to disclosure and coordination among supervisory authorities.

Main Points and Decisions

1. Application of Haircuts

• Haircuts Applied: Common haircuts were applied to the 'held to maturity' and 'loans to receivables' portfolios.
• Buffer Treatment: The figures for the buffer were to be presented gross rather than net of taxes.

2. Reconsideration of Buy-Backs

• Guideline Review: The Board suggested that the EBA should reconsider its position on buy-backs, particularly in the context of hybrid instruments.
• CEBS Guidelines: According to CEBS Guidelines, institutions wishing to buy-back hybrid instruments should replace them with capital of the same or better quality.
• Consensus: There was widespread agreement among participants to review this suggestion.

3. Coordination of Disclosure

• Divergence Concerns: It was noted that without coordination, individual approaches to publishing information would likely be very divergent.
• Proposed Solution: The Chair suggested that the Board should agree on a coordinated approach to disclosure if possible.

4. Programme Countries' Approach

• Chair's Proposal: For programme countries, the Chair proposed using overall programme figures rather than applying the EBA's proposed treatment.
• Authority Confirmation: The proposal was made with a request for confirmation from the relevant authorities.

5. Summing Up by the Chair

• Dynamic Buffer Preference: The majority of the Board expressed a preference for a dynamic buffer, although on a mixed basis. This would allow some fixed target for fresh capital to be set on a case-by-case basis by NSAs when reviewing banks’ capital plans.
• Buy-Back Incentives: The idea of providing an incentive for buy-backs was supported and will be reviewed by EBA Staff.
• Hybrid Instruments Inclusion: The inclusion of certain hybrid instruments from the private sector in the capital buffer was a finely balanced issue and was decided to be the subject of an urgent written procedure.
• Written Procedure Outcome: The written procedure was completed with a simple majority in favour of including the hybrid instruments.

Key Information

• The meeting was held on 20 October 2011, from 16:10 to 17:40 hrs.
• The Chair, Andrea Enria, played a central role in guiding the discussion and summarizing the outcomes.
• The Board emphasized the need for coordination and consistency in regulatory approaches.
• The dynamic buffer concept was supported, with a mixed approach to its implementation.
• The inclusion of hybrid instruments was addressed through an urgent written procedure, which was completed with a majority decision in favor.

Conclusion

The teleconference aimed to align the EBA's regulatory stance with the evolving needs of the banking sector, particularly in the context of capital buffers and buy-back activities. The decisions made reflect a balance between flexibility and consistency, with a focus on enhancing transparency and coordination among supervisory authorities.