EBA欧洲银行-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 the implementation of the Capital Requirements Directive (CRD), which incorporates the Basel II framework into EU legislation. The report emphasizes the shift from designing supervisory guidelines to delivering them in practice, with a strong emphasis on convergence of supervisory practices and enhancing cooperation among EU banking supervisors.

Main Tasks and Objectives

CEBS has three main tasks:

1. Provide regulatory advice to the European Commission.
2. Promote convergence of supervisory practices across the EU and EEA.
3. Enhance cooperation and exchange of information among banking supervisors.

Key Achievements in 2006

2.1 Advice to the Commission

• Quantitative Impact Study (QIS 5):

  • Conducted in 2005 and published in June 2006.
  • Analyzed the impact of the CRD on minimum regulatory capital requirements.
  • Found that the average required capital would decrease due to the CRD, and that it encourages more sophisticated risk measurement techniques.
  • Results aligned with Basel Committee findings, leading to no change in the scaling factor.

• Call for Advice on Definition of Own Funds:

  • CEBS conducted two surveys: one on national implementation and one on market trends.
  • Identified commonalities and differences in national approaches to own funds, including hybrid instruments, deductions, and loss absorption features.
  • Shared findings with the Basel Committee to ensure international consistency.

• Cross-Border Consolidation:

  • CEBS provided technical advice on procedures for mergers and acquisitions under Article 19 of the CRD.
  • Participated in working groups with the European Commission and other committees.
  • Highlighted key issues such as time limits for decision-making, assessment criteria, and access to confidential information.

• Call for Advice on Definition of Large Exposures:

  • CEBS conducted a stock take of current supervisory practices and consulted with the industry.
  • Noted commonalities in core issues but identified divergences in definitions and reporting frequency.
  • Worked on developing a common understanding of large exposures and their prudential implications.

• Call for Advice on Commodities Business:

  • CEBS provided input on the prudential treatment of commodities business, as part of the review under Article 48 of Directive 2006/49/EC.
  • Aimed to ensure consistency in supervisory approaches across the EU.

• Equivalence of US and Swiss Supervision:

  • CEBS assessed the equivalence of US and Swiss regulatory frameworks.
  • This work supported the development of a more harmonized supervisory environment.

2.2 Convergence of Supervisory Practices

• CEBS published twelve consultation papers and finalized nine sets of guidelines, seven of which relate to the CRD.
• Developed a common European framework for supervisory disclosure, enhancing transparency and allowing comparison of national approaches.
• Focused on operational networking, a bottom-up approach to identify and resolve practical issues in the implementation of the CRD and its guidelines.
• Initiated a pilot project on ten cross-border groups to test the effectiveness of this approach.

2.3 Accounting and Auditing

• CEBS worked on accounting standards and auditing practices, particularly in the context of the International Financial Reporting Standards (IFRS).
• Aimed to align EU banking practices with global standards and ensure consistency in financial reporting.

2.4 Cooperation

• Operational Networking:

  • A key innovation in 2006, aimed at improving the implementation of the CRD and CEBS guidelines.
  • Piloted with ten cross-border groups and planned for expansion.

• 3L3 Cooperation:

  • CEBS worked closely with CEIOPS (Insurance) and CESR (Securities) to address cross-sector issues.
  • Agreed on a joint protocol for cooperation in 2005, leading to the first joint work programme in 2006.
  • Focused on financial conglomerates, supervisory convergence, and the implementation of the Francq Report recommendations.

• Cooperation with Third Countries:

  • Engaged in discussions with supervisors from third countries.
  • Participated in the Basel Committee on Banking Supervision as an observer.
  • Contributed to the EU-China Finance Sector Programme.

• Crisis Management:

  • CEBS developed crisis management tools and frameworks.
  • The work was not submitted to public consultation due to its subsidiary nature and sensitivity.

2.5 Cross Sector Cooperation Issues

• CEBS and CEIOPS formed a Joint Task Force on Capital to compare capital elements across banking, insurance, and investment sectors.
• Identified four main areas of difference in capital eligibility: hybrid instruments, deductions, revaluation reserves, and calculation methods.
• Continued analysis in 2007 to assess the impact of sector differences on financial conglomerates.

Methodology and Tools for Convergence

• CEBS developed a methodology for self-assessment of its work in technical areas.
• Conducted an online survey with stakeholders to evaluate its effectiveness and strategy.
• Plans to use peer review mechanisms, discussion forums, and FAQs to support convergence and cooperation.
• Will continue to refine its approach in 2007 with a focus on common supervisory culture, non-legally binding dispute resolution, and common reporting frameworks.

Conclusion

The year 2006 marked a significant shift for CEBS from designing supervisory guidelines to delivering them in practice. The Committee focused on monitoring implementation, enhancing transparency, and fostering cooperation among EU banking supervisors. The operational networking project and 3L3 collaboration were central to these efforts, aiming to create a more harmonized and efficient supervisory environment across the EU and EEA. CEBS also emphasized the importance of stakeholder involvement and transparency in its work, which will continue to be a priority in 2007.