EBA欧洲银行-EBA-ITS-2015-07-ITS-on-Disclosure-of-Group-Financial-Support-Agreements_12页_210kb

EBA Final Draft Implementing Technical Standards on Financial Support Agreement Disclosure

Core Content

The EBA final draft Implementing Technical Standards (ITS) outlines the requirements for the form and content of disclosure of group financial support agreements under Article 26 of Directive 2014/59/EU. This directive aims to establish a harmonised framework for the recovery and resolution of credit institutions and investment firms, ensuring optimal liquidity allocation and legal certainty during financial distress.

The ITS specify that disclosure must be made on the institution's website, in a publicly accessible format. The information to be disclosed includes key elements such as the names of the group entities involved, the form of support, maximum amount, consideration and repayment terms, seniority and maturity profiles, triggering circumstances, and collateral and margin requirements. Sensitive details, however, must remain confidential.

Main Points

1. Purpose of the Disclosure

• To provide transparency and information to shareholders, creditors, and other stakeholders.
• To support informed decision-making regarding the financial health and recovery prospects of the group.
• To ensure legal certainty and financial stability.

2. Scope of Disclosure

• The disclosure should be public and accessible, similar to financial statements.
• It must include general terms of the agreement and names of the involved entities.
• Confidentiality of specific and sensitive information is maintained.

3. Required Information

• Names of the group entities involved.
• Form of support (e.g., loans, guarantees).
• Purpose of support (for loans).
• Potential covered transactions and third parties (for guarantees).
• Reciprocity of obligations.
• Limitations of support.
• Consideration calculation principles and their relation to market conditions.
• Maturity profile and maximum term of loans.
• Repayment obligations.
• Triggering circumstances.
• Collateral and margin requirements.

4. Proportionality and Confidentiality

• The principle of proportionality is considered in defining the scope of disclosure.
• Sensitive information such as specific indicators and business secrets should not be disclosed.
• Only general descriptions and principles are required to be made public.

Key Information

1. Regulatory Basis

• Based on Article 26(2) of Directive 2014/59/EU.
• Complies with Article 10(1) and 16(2) of the EBA Regulation (EU) No 1093/2010.

2. Implementation

• The disclosure must be made without delay after the agreement is concluded.
• It should be updated at least annually.
• The form of disclosure should align with the format of non-quantitative information in financial statements.

3. Public Consultation

• A public consultation was conducted, receiving four responses, three of which were published.
• The EBA considered various options for disclosure scope:
  • Option 1: Detailed information on calculation of consideration, maturity, trigger conditions, and collateral.
  • Option 2: General description and principles.
  • Option 3: No disclosure of triggering indicators.
• Option 2 was chosen as it strikes a balance between transparency and confidentiality.

4. Final Regulation

• The Regulation is based on the draft ITS and is binding in all Member States.
• It enters into force twenty days after publication in the Official Journal of the European Union.

Conclusion

The EBA final ITS ensures that group financial support agreements are transparent and accessible, while also protecting sensitive information and legitimate interests. The disclosure requirements are designed to be proportional and informative, supporting stakeholder awareness and financial stability.