EBA欧洲银行-EBA-BS-2013-135-Minutes-BoS_15-16-May-2013_16页_312kb

EBA BoS Meeting Summary (15-16 May 2013)

Meeting Overview

• Date: 15–16 May 2013
• Time: 13:30–18:30 on 15 May; 9:00–16:00 on 16 May
• Location: EBA, London
• Chairperson: Andrea Enria

Core Content and Main Points

1. Vacancy for Alternate Chairperson and MB Elections

• Matthew Elderfield resigned, creating a vacancy for the Alternate Chairperson.
• A call for nominations for the EBA Management Board (MB) was issued, with three positions expiring at the end of June.
• Legislative developments related to the Single Supervisory Mechanism (SSM) could affect the MB composition.
• Consideration was given to postponing the MB elections to September 2013 to avoid re-elections after new legislation is published.
• The EBA Staff was tasked with reviewing procedural options to ensure proper representation.

2. Election of Substitutes for the EBA Mediation Panel

• Three BoS members submitted candidatures for the vacant positions.
• An election was required despite the equal number of candidates.
• Legislative changes may impact the composition of the Mediation Panel.
• Two mediation cases were updated and discussed.

3. Risk and Vulnerabilities

• The Director Oversight introduced the topic with a brief presentation.
• SCOP provided an update on ongoing risks and vulnerabilities.
• Positive feedback on the risk dashboard and RAQ outcomes.
• General agreement on risk prioritisation, though concerns were raised about regulatory risk not decreasing due to ongoing activities.
• Discussion on banks not meeting recapitalisation and sovereign buffer requirements.
• Risk of silence in the absence of stress test results and a transparency exercise planned for late 2013.

4. Stress Test and Asset Quality Review (AQR)

• The BoS was asked to endorse updated risk chapters and ancillary notes.
• The general methodology (credit risk, market risk, securitisation) was considered final.
• Caveats included securitisation calibration, funding treatment, and restructuring banks.
• A Q&A was requested for implementation support.
• The data collection exercise was approved but delayed to autumn and coordinated with SSM.
• A transparency exercise was planned for late 2013.
• AQR Recommendation was approved, but publication was postponed until the SSM timeline was defined.

5. Principles for Benchmark Setting Processes

• ESMA and EBA published a joint consultation paper on benchmark setting.
• The BoS was asked to endorse the principles for publication.
• A press release was planned to highlight continued work on transaction-based benchmarks.

6. FX Lending to Unhedged Borrowers (SREP)

• The draft consultation paper on capital measures for FX lending was approved for a three-month consultation.
• The content was slightly re-ordered to focus the executive summary on substance.
• Further quantification of the GLs' impact was to be undertaken during the consultation period.

7. Market Risk and Securitisation Technical Standards

• The BoS endorsed the Consultation Papers on the definition of "Market" and non-Delta risks for options.
• The consultation paper on securitisation retention rules was approved for a three-month period.
• The EBA noted the impact on managed CLOs and planned to archive existing CEBS GLs and Q&A on securitisation.
• A QIS was planned for October 2013, following the July 2013 publication of the CP.
• The legal deadline for submission to the Commission was delayed due to the potential high impact on capital.

8. 2013 Work Programme Update

• A revised Work Programme was to be submitted for BoS review and comments.
• Publication would occur only after the CRD IV was published.
• A one-week written procedure was approved to gather feedback on the revised Work Programme.

9. Home-Host and Colleges Technical Standards

• Two sets of draft technical standards were introduced by the SCOP Chair.
• The BoS endorsed three consultation papers for a three-month period.
• The EBA planned to publish the Selection Procedure and Call for Expression of Interest (CfI) after the BoS decision.
• A timeline was approved for BSG renewal, with a six-week CfI period and a proposed approval via written procedure later in the year.

10. Liquidity Technical Standards and Report

• The draft consultation papers on additional liquidity monitoring metrics and outflows were approved for a three-month period.
• The EBA planned to issue a near-final draft RTS on Own Funds Part 1 to provide current thinking to the industry.
• The EBA would conduct a final review by legal experts before submission to the Commission.
• The progress report on liquidity measures was broadly supported, with suggestions for restructuring and factual presentation.
• A draft final report was to be discussed at the Away Day meeting in July 2013.

11. Own Funds Technical Standards

• The EBA Staff presented the draft CP on Own Funds RTS.
• The CP was approved for consultation, including two options for broad market indices.
• No changes were to be introduced for pension funds or indirect holdings.
• The EBA would integrate additional wording from EIOPA into the explanatory box on deductions.

12. Large Exposures Technical Standards

• The BoS approved the consultation paper on the determination of overall exposure to a client or group of connected clients.
• One sentence in the background section was deleted following a BoS member's request.

13. Remuneration Technical Standards

• The CP on remuneration criteria was discussed.
• The threshold for variable remuneration above 75% of fixed remuneration and 75,000 Euro was proposed for consultation.
• A suggestion was made to limit the threshold to 500,000 Euro and make the text indicative.
• The BoS supported the consultation paper, with one week given for further comments.

14. Consumer Protection Opinions

• The BoS was asked to endorse two opinions: Good Practices for Responsible Lending and Treatment of Borrowers in Payment Difficulties.
• Amendments were suggested for both opinions, including considering stressed conditions and caving the capitalisation of shortfall.
• A revised version of both opinions would be sent to the BoS for further publication.

15. BSG Renewal Process

• The EBA proposed a renewal process aligned with other ESAs.
• The process included a Call for Expression of Interest (CfI) and a Selection Procedure.
• The EBA planned to publish the Selection Procedure and CfI separately.
• The EBA requested formal approval of the process and its annexes.

16. Reports from Committees and Other Matters

• A BoS member raised concerns about the remittance dates for FINREP and COREP reports.
• The EBA would address quality checks and suggested involvement of SCARA.
• The EBA would use a written procedure for the approval of several technical standards.
• The ECB requested individual bank data on interconnectedness for analytical purposes.
• Explicit consent from BoS members was required to grant ECB access to this data via ESRB.

Key Participants