EBA欧洲银行-EBA-Questionnaire-Equivalence-2st-step_115页_970kb

Summary of the Questionnaire on the Assessment of the Equivalence with European Regulatory and Supervisory Framework

Core Content of the Questionnaire

The questionnaire aims to assess the equivalence of the prudential regulatory and supervisory framework of a third country with that of the European Union (EU). It is designed to evaluate whether the third country's framework ensures similar outcomes as the EU in terms of:

• Effective and adequate protection of investors and consumers of financial services
• Stability and integrity of the domestic financial system
• Cooperation between financial system actors, including regulators and supervisors
• Independent and effective supervision
• Proper implementation and enforcement of internationally agreed standards transposed in EU legislation

The assessment is outcome-based and focuses on the actual regulatory and supervisory regimes in place, excluding future regulations not yet in development. Only clearly enforceable laws and regulations are considered, not soft law or quasi-legal instruments.

Main Objectives

1. Evaluate the implementation of prudential standards in the third country.
2. Compare the third country's framework with the EU's primary legislative texts and related regulations.
3. Ensure consistency in the regulatory and supervisory approach by involving relevant authorities in the self-assessment.

Structure of the Questionnaire

The questionnaire is divided into 16 thematic sections, with Section 1 providing an overview of the banking sector and the rest focusing on specific prudential requirements:

1. Overview of the banking sector
2. Supervisory Framework
3. Own Funds
4. Reporting requirements and valuation
5. Credit Risk - Standardized Approach
6. Credit Risk - IRB Approach
7. Credit Risk Mitigation
8. Securitisation and Credit Risk Transfer
9. Operational Risk
10. Market Risk and Counterparty Credit Risk
11. Liquidity
12. Macro-Prudential framework
13. Capital buffers
14. Large Exposures Framework
15. Leverage Ratio
16. Market discipline and disclosure

Each section includes relevant EU legislation references and, in most cases, a brief explanation of the EU framework to aid interpretation.

Guidance for Respondents

• The third country should provide detailed and accurate information in English, including references to domestic laws and regulations.
• All responses must be supported by specific legal references and, where possible, by data and supporting documents.
• Only enforceable legislation should be considered, not internal guidelines or soft law.
• The questionnaire is granular, and answers should be focused and precise.
• Additional sheets or documents can be appended to provide further context and support.

Relevant EU Legislation

The equivalence assessment is based on the following key EU texts:

1. Capital Requirements Regulation (CRR; Regulation (EU) No 575/2013)

   • Contains detailed prudential requirements on capital, risk measurement, liquidity, and leverage.
   • Reference: CRR

2. Capital Requirements Directive (CRD; 2013/36/EU)

   • Focuses on supervisory procedures, risk governance, and corporate governance.
   • Reference: CRD

3. Delegated Regulation (EU) 2015/62

   • Amends CRR with respect to the leverage ratio.
   • Reference: EU 2015/62

4. Delegated Regulation (EU) 2015/61

   • Supplements CRR with regard to the liquidity coverage ratio (LCR).
   • Reference: EU 2015/61

5. Regulation (EU) 2017/2402

   • Lays down a general framework for securitisation.
   • Reference: EU 2017/2402

6. Regulation (EU) 2017/2401

   • Amends CRR on prudential requirements for credit institutions and investment firms.
   • Reference: EU 2017/2401

Definitions

Key terms used in the questionnaire are defined to ensure clarity and consistency:

• Credit Institution: An undertaking that takes deposits or other repayable funds from the public and grants credits for its own account.
• Investment Firm: A legal person that provides investment services or performs investment activities on a professional basis.
• Institution: A credit institution or investment firm.
• Member State: A country that is a member of the EU.
• Competent Authority: A public authority or body legally empowered to supervise institutions.
• Prudential Regulation: Includes access to banking activities, supervisory powers, capital and liquidity requirements, and internal governance.

Key Sections Overview

1. Overview of the Banking Sector

• Provides an overview of the structure, size, and performance of the banking sector.
• Includes data on total assets, deposits, funding sources, and ownership.
• Asks for a self-assessment of risks and vulnerabilities, including household and corporate debt metrics.

2. Supervisory Framework

• Covers general questions on the supervisory authorities and their responsibilities.
• Includes applicability of laws, authorisation requirements, and prudential supervision processes.
• Details the supervisory review process (SREP), internal capital adequacy assessment process (ICAAP), and governance and fit-and-proper requirements.

2.1 General Questions

• Identifies the authorities responsible for prudential regulation and supervision.
• Describes the legal framework for banking activities.
• Explains the enforceability of guidance and operational rules.

2.2 Applicability of Laws

• Reviews the legal requirements for granting authorisation to institutions.
• Covers reasons for withdrawal of authorisation.
• Explains the requirements for acquisitions or increases of qualifying holdings.

2.3 Authorisation

• Details the conditions for authorisation of credit institutions and investment firms.
• Explains the legal basis for withdrawal of authorisation.
• Clarifies the process for notification and assessment of acquisitions.

2.4 Prudential Supervision

• Covers the scope and level of prudential supervision (individual vs. consolidated).
• Describes the obligations of auditors (internal and external) to report breaches.
• Explains the powers and conditions under which supervisory authorities can impose penalties.

2.5 Supervisory Review Process

• Details the categorisation and methodologies of the supervisory review.
• Covers the areas of investigation, indicators monitored, and frequency of evaluation.
• Explains the elements of the supervisory review process, including stress testing and risk management.

2.6 Fit & Proper and Governance

• Reviews the governance structure, composition of the management body, and independence of board members.
• Includes requirements on the number of directorships, time commitment, and diversity.
• Explains the suitability assessment process for management body members and Key Function Holders.