EBA欧洲银行-EBA-BS-2018-141rev1.-28Draft-Minutes-BoS-18-19-April-2018-29_13页_321kb

EBA BS 2018 141rev1 - Summary

Core Content

The EBA Board of Supervisors (BoS) meeting held on 18-19 April 2018 in London covered a range of topics related to banking supervision, regulatory frameworks, and the implementation of key financial standards. The meeting focused on transparency, Basel III reforms, IFRS9 implementation, and Brexit-related supervisory challenges.

Main Points and Key Information

Agenda Item 1: Approval of Agenda

• The BoS approved the agenda for the meeting.
• The Chairperson, Andrea Enria, informed of a new alternate member to the BoS, Ann Viljugrein, from the Norwegian Financial Supervisory Authority.
• The Task Force on EUCLID implementation was established and approved by the SSM Supervisory Board. A call for participants will be launched among competent authorities (CAs).

Agenda Item 2: Appointment of Alternate Member of the Mediation Panel

• The alternate of Mr. Csaba Kandrács (Magyar Nemzeti Bank) left his institution.
• The BoS appointed Mrs. Judit Matusek as the new alternate.
• The BoS was informed that the first unresolved mediation cases would be handled under the non-objection procedure.

Agenda Item 3: Update on Risks and Vulnerabilities

• The Director of Economic Analysis and Statistics provided an update on the European banking system's risks and vulnerabilities.
• Credit quality showed improvement, but NPLs (Non-Performing Loans) remained high.
• Banks’ profitability reached its highest level in eight years, driven by fees and lower risk costs.
• There was a suggestion to use profits to increase provisions and resolve NPLs.
• The BoS members expressed concerns about the impact of Basel III reforms on smaller banks and specialized business models, emphasizing the need for proportionality.
• The EBA was advised to collect more data to better understand the implications of the reforms.

Agenda Item 4: 2018 EU-wide Transparency Exercise

• The timeline for the Transparency Exercise was adjusted to avoid overlap with the Stress Test exercise.
• The package included final templates and a sample, consistent with previous exercises.
• Concerns were raised about the comparability of figures due to IFRS9 impacts.
• The BoS agreed to approve the package.

Agenda Item 5: EU Implementation of Basel III Reforms

• The EBA was tasked with preparing for the implementation of Basel III reforms in the EU.
• Key policy issues included output floors, mortgage portfolios (LTVs-LTIs), new risk weights, CVA framework, and proportionality for smaller banks.
• A timeline was suggested to align the data collection for the Call for Advice (CfA) with the second BCBS monitoring exercise.
• The Commission informed that the CfA would be sent in April 2018 with a deadline in June 2019.

Agenda Item 6: Downturn IRB Modelling

• The Head of Risk-Based Metrics presented updates on the draft RTS on Economic Downturn Conditions for LGD.
• The draft RTS was considered stable but required stakeholder feedback and an impact assessment.
• A one-month consultation was planned for the RTS, and a revised consultation paper on the Guidelines incorporating SCREPOL comments would be sent to the BoS for further feedback.

Agenda Item 7: Draft Consultation Paper on STS Criteria

• Two consultation papers were presented on the interpretation of STS criteria for non-ABCP and ABCP securitisation.
• The BoS agreed to publish both papers for a three-month consultation period.

Agenda Item 8: Single Rule Book Q&As Implementation Review

• The EBA was to conduct a two-step review of the Q&A process.
• Members expressed concerns about the sequential approach, with some supporting the review of individual Q&As only after the process review.
• The Chairperson concluded that a process review without individual Q&A scrutiny would not provide enough value and proposed a note for approval.

Agenda Item 9: Brexit-related Matters - UK Presentation

• Sam Woods from the UK PRA outlined the supervision of international banks in the UK.
• The PRA emphasized the need for cooperation with EU supervisors and the importance of MoUs and SoRs.
• The ECB/SSM representative raised concerns about the treatment of third country branches in the EU27 and the UK's senior management regime.
• The Commission representative cautioned against premature discussions on precise arrangements due to political uncertainty.

Agenda Item 10: Restricted Discussion on Brexit-related Matters without UK

• A discussion was held without UK members, focusing on EU perspectives.

Agenda Item 11: Guidelines on Disclosure of NPEs and Forborne Exposures

• The BoS supported the publication of the consultation paper on NPE disclosure.
• The threshold for NPLs ratio (above 5%) and the template on 'Collateral valuation' were flagged for potential reassessment.

Agenda Item 12: IFRS9 Implementation

• The EBA presented the state of IFRS9 implementation and the impact of transitional arrangements.
• Concerns were raised about regulatory arbitrage and the need for further analysis of IFRS9 vs. IAS 39 differences.
• The EBA will monitor the use of transitional provisions and assess potential cases of regulatory arbitrage.

Agenda Item 13: Anti-Money Laundering Matters

• The EBA is working on promoting convergence in AML/CFT practices.
• Peer reviews, good practices dissemination, and enhanced cooperation between NCAs were proposed.
• The establishment of an European body for AML/CFT responsibilities was suggested.
• The EBA will prepare a complementary paper for the next June meeting.

Agenda Item 14: Reports from Standing Committees

• The BoS took note of the reports from the committees.

Agenda Item 15: AoB (Agenda for the Board of Supervisors)

• IRRBB GLS: A proposal was made to delay the publication of IRRBB guidelines until the new CRR/CRD framework is finalised.
• Relocation: The Commission expressed concerns about the timeline for EBA’s relocation to Paris. The EBA plans to submit the final building selection by end of May or beginning of June, with the building ready for staff in February 2019.

Conclusion and Next Steps

• The BoS approved the agenda, the mediation panel alternate, the transparency exercise package, and the consultation papers on securitisation and NPE disclosure.
• The EBA will finalize data templates and samples for the Basel III implementation by the June meeting.
• The relocation process will continue with regular updates to the Management Board and BoS.
• The Brexit-related discussion will be addressed in a future meeting with the UK excluded.