EBA欧洲银行-EBA-BSG-2018-052-28Final-Minutes_-BSG-Meeting-17-April-201829_7页_237kb

Banking Stakeholder Group – DRAFT Minutes Summary

Core Content

The Banking Stakeholder Group (BSG) meeting held on 17 April 2018 in London was attended by key stakeholders and EBA representatives. The meeting focused on reviewing recent developments, discussing key risks in the EU banking sector, and addressing ongoing regulatory initiatives.

Main Points and Key Information

Item 1: Welcome and Agenda Adoption

• The BSG Chairperson and EBA Chairperson welcomed members.
• The agenda and previous BSG minutes from 21 February 2018 were approved.
• The BSG secretariat will now be supported by Ester Botica Alonso.

Item 2: BSG Update on Consultation Papers

• The BSG Chairperson reviewed responses to EBA consultation papers (CPs) and assigned tasks to Working Group (WG) members based on their leadership roles.
• A drafting team was proposed to prepare the "End of Term" report, with a deadline of October 2018.
• The BSG agreed on the joint ESA response to the European Commission's proposal on the review of the ESAs and suggested minor amendments for clarity.

Item 3: EBA Update on General Developments

• The EBA Chairman outlined the new internal structure, emphasizing supervision and resolution, especially in the context of Banking Union and Brexit.
• A new department for economic analysis and statistics was established.
• Key updates on NPLs:
  • Standardised NPL templates were published in December 2017.
  • A CP on NPL management was issued with a response deadline in June 2018.
  • Recent advice on statutory prudential backstops for new loans turning non-performing was shared.
• Future work includes enhanced disclosure requirements for NPLs and guidelines on loan origination, monitoring, and governance.
• The EBA delayed the launch of its Q&A implementation review to finalize organisational aspects.
• A benchmark report on remuneration and high earners was published, covering 2016 data.
• The EBA will receive a Call for Advice (CfA) on the EU implementation of Basel reforms, including topics like mortgage portfolios, equity risk weights, and operational risk frameworks.
• BSG members requested clarification on national discretions in Basel III and sustainable finance, but the EBA clarified it was not involved in the latter and that no agreement on the transition period for Brexit had been reached yet.

Item 4: Key Risks in the EU Banking Sector

• EBA staff presented data on EU banks' performance, highlighting:
  • CET1 ratio increased by 60 bps in 2017, reaching 14.8%.
  • Risk-weighted assets (RWAs) decreased by 3.5% in Q4 2017, driven by debt securities holdings.
  • NPL ratio continued to improve, decreasing by 20 bps to 4%.
  • Bank profitability rose to 6.1% in 2017, the highest in 8 years, but RoE still lagged behind the CoE of ~10%.
• BSG members asked about NPL reduction policies and drivers. EBA staff noted that regulatory initiatives and suasion had contributed to NPL reductions, particularly in SME and household portfolios.
• The EBA highlighted that asset sales in Italy and transactions in the UK were key drivers of NPL reduction, not changes in risk weights.

Item 5: Other Regulatory Deliverables (A-Point)

A) Brexit Update

• EBA staff outlined a 2018 work plan, including an Opinion to be issued in June aimed at ensuring preparedness for a hard Brexit.
• BSG members suggested focusing on industry certainty and temporary licenses for branches.

B) Conduct, Payments, and Consumers

• EBA presented the 2018/19 consumer trends report, including a questionnaire and a workshop for consumer associations.
• BSG members requested inclusion of all EU countries and raised concerns about accommodation costs in London and the Joint ESAs Consumer Protection Day.
• EBA confirmed invitations to EU associations and logistics responsibility by EOIPA.

C) LCR Implementation Review

• EBA staff discussed the implementation of Article 25(4) and 27 of the liquidity coverage requirement (LCR) regulation.
• Concerns were raised about the lack of clarity and flexibility in the regulation, which could affect the level playing field.
• EBA proposed principles-based guidance to ensure harmonisation while maintaining flexibility, especially for excess operational deposits and retail deposits.

D) Prudential Backstop Report

• EBA presented a report on the prudential backstop for NPLs, including qualitative considerations, interactions with existing prudential measures, and IFRS9 accounting provisions.
• BSG members asked about early recovery scenarios and dynamic analysis, but EBA clarified that no such analysis was planned.

Item 6: Discussion on Topics Presented by BSG Members

• A member presented a comparison of EU and US bank performance, noting EU banks still lagged in profitability (RoE), NPLs, and cost-income ratios.
• Some members questioned the analysis and referred to American economic policies, while others noted differences in RWA density and business models.
• The need to consider local business models and avoid over-reliance on single metrics like RoE was emphasized, especially in the German context where savings and cooperative banks have different capital structures.

Item 7: Action Items and Other Business (AOB)

• The EBA staff requested permission to include BSG members in the EBA news alert. This was approved.

Participants

EBA Staff Presenters

• Andrea Enria – EBA Chairperson
• Adam Farkas – EBA Executive Director
• Ester Botica Alonso
• Philippe Allard
• Christopher Mills
• Pier Haben
• Angel Monzon
• Mario Quagliariello
• Christopher Kuhn
• Dirk Haubrich
• Antonio Barzachki
• Roberta De Filippi
• Luis del Olmo
• Gerbert van der Kamp