EBA欧洲银行-EBA-BS-2017-007rev1-28Final-Minutes-BoS-6-7-December-201629_19页_513kb

EBA Board of Supervisors – Final Minutes Summary (EBA BS 2017 007rev1)

Core Content

The document summarizes the key discussions and decisions of the EBA Board of Supervisors (BoS) meeting held on 6–7 December 2016 in London. It outlines the agenda items, including the approval of the agenda and minutes, reports on breaches of Union law, updates on risks and vulnerabilities, and various proposals and consultations related to banking regulations and supervisory practices.

Main Points and Key Information

Agenda Item 1: Welcome, Approval of Agenda and Minutes

• The BoS approved the meeting agenda and the minutes from the previous meeting (25–26 October 2016).
• The Chairperson introduced the representative of the EFTA Surveillance Authority and outlined the final 2017 BoS calendar following changes in the Management Board (MB) schedule.

Agenda Item 2: Report on Breach of Union Law

• A report on the procedures for identifying breaches of Union law was presented.
• The EBA Head of Legal outlined the status of cases and their resolution.
• The process was noted as resource-intensive, but initial exchanges with competent authorities (CAs) proved valuable in identifying concerns.

Conclusion

• The BoS took note of the report.

Agenda Item 3: Amendments to the Breach of Union Law Process

• Proposed amendments to the BUL Rules of Procedure were introduced to simplify the process and reflect changes in the EEA Agreement after the incorporation of the EBA Regulation.
• Members suggested changes to address conflicts of interest and some wording adjustments.
• There was general support for the 'status-quo option' in the BUL process, with a preference to keep the current wording of Article 5(2) for cases involving complaints by authorities.

Conclusion

• The BoS agreed to some wording changes and requested the final decision to be submitted via written procedure.

Agenda Item 4: Update on Risks and Vulnerabilities

• The EBA Director of Oversight provided an overview of risks in the European banking system, including profitability, business model sustainability, and NPL resolution.
• The SCOP Chair highlighted the need for improvement in banks' cost efficiency, referencing factors like leverage, competition, and expenses.
• The Bank of Italy representative presented recent structural reforms in the Italian banking sector.

Conclusion

• The BoS welcomed the risk analysis and proposed further discussions on NPL resolution, balance sheet adjustment, and sustainable business models.

Agenda Item 5: Discussion on the EU-wide Stress Test 2018

• The BoS agreed not to conduct a stress test in 2017.
• The EBA Director of Oversight presented three options for the 2018 stress test: status-quo, top-down, and bottom-up approaches.
• Members supported the status-quo option and an accelerated timeline, while requesting methodological improvements.
• The EBA was asked to focus on simplicity and to involve the ESRB in early discussions on adverse scenarios.
• A longer-term reflection on combining top-down and bottom-up approaches was suggested.

Conclusion

• The BoS endorsed the status-quo option and agreed to a tentative publication in the first half of 2018, pending further discussion on data reliability.

Agenda Item 6: Consultation Paper on Guidelines on Supervision of Branches

• A consultation paper on supervision of branches was introduced, focusing on identifying 'significant-plus' branches and improving coordination between home and host authorities.
• Members expressed general support, though some raised concerns about consistency with the legal framework and the role of EBA mediation.

Conclusion

• The BoS agreed to publish the consultation paper with some wording changes.

Agenda Item 7: Discussion Note on Capital Guidance in SREP

• The EBA presented a discussion note on capital guidance for SREP, emphasizing the need for consistency with Pillar 2 capital guidance (P2G).
• Members supported the approach, with some requesting a stocktaking of P2G usage and a transitional period for the new concept.
• The EBA was asked to consider the Commission's CRD amendment proposal and to discuss P2G in colleges and with the ECB.

Conclusion

• The BoS agreed to circulate the note for supervisors and to use it as input for revising SREP Guidelines.

Agenda Item 8: Consultation Paper on Incident Reporting under PSD2

• The EBA presented a consultation paper on incident reporting under PSD2, including classification criteria, notification processes, and reporting frameworks.
• Members supported the publication, with some concerns about alignment with the SSM framework and the conditions for consolidated reporting.

Conclusion

• The BoS agreed to publish the consultation paper for a three-month period.

Agenda Item 9: Final Draft RTS on Passporting under PSD2

• The final draft RTS on passporting was introduced, reflecting the agreement between the TFPS and the Commission.
• EBA staff agreed to add specific wording to clarify that field 21(b) of Annex III was not an additional obligation.
• The BoS endorsed the draft RTS with the suggested changes.

Agenda Item 10: Discussion on EBA's Work on FinTech

• The BoS was presented with a proposed work plan on FinTech, divided into four areas: authorisation regimes, prudential risks, consumer risks, and business model impacts.
• Members emphasized the need for internal and external coordination with ECB, Commission, and other bodies.
• A discussion paper was agreed to be prepared by the alternate Chairperson, due by end-June 2017.

Agenda Item 11: Report on Confidentiality Provisions of Third Countries

• The BoS supported the second round of assessments on third countries' confidentiality provisions and the amendment to Recommendation EBA/REC/2015/01.
• The report was agreed for publication.

Agenda Item 12: Note on Provision of Information on Supervisory Methodologies

• The EBA requested methodologies from CAs for SREP, stress testing, and supervisory measures.
• Members supported the initiative, emphasizing the need for cooperation and avoiding duplication.
• A focus on SREP methodologies was agreed, with documents to be accepted in all EU official languages.

Agenda Item 13: Policy Developments and Quantitative Impact of BCBS Reforms

• The EBA Executive Director summarized the BCBS meeting and the likely compromise on the output floor.
• Members expressed concerns about the calibration levels and the impact of the output floor on their jurisdictions.
• The need for a clear and neutral presentation of the 'parallel approach' was highlighted.

Agenda Item 14: Expansion of EBA Infrastructure – Tasks and Resources

• The BoS supported the expansion of the EBA's data submission system to include all banks.
• The project was considered strategic for proportionality analysis and transparency.
• The budgetary implications were discussed, and the BoS agreed to proceed if the budget was approved.

Agenda Item 15: Draft Single Programming Document 2018

• The 2018 SPD was introduced with a total budget of 42.5 million euros and 147 TAs.
• Members requested clarifications on the EFTA contribution and the 2017 budget amendment due to exchange rate fluctuations.
• The document was agreed for final adoption, with a clarification on EFTA contributions included.

Agenda Item 16: MREL Report

• The final MREL report was presented, incorporating changes from the Resolution Committee (ResCo).
• The report addressed concerns about subordination requirements, intragroup issues, and the treatment of cross holdings.
• The BoS agreed to circulate a revised draft for further consultation.

Agenda Item 17: Report on Emerging Technologies Risks

• The report covered IT risks such as FinTech, outsourcing, and cybersecurity.
• Members broadly supported the report and proposed an annual assessment for updates.

Conclusion

• The BoS adopted the report for publication with some wording changes.

Agenda Item 18: Report on the Impact of the Liquidity Coverage Ratio 2016

• The EBA presented the main findings of the LCR impact report, including central bank-related transactions.
• The Commission representative requested a confirmation that consultation procedures were respected.
• The Bank of Greece requested to include its data in the confidential annex.

Conclusion

• The BoS agreed to the publication of the report.

Agenda Item 19: Peer Review on the ITS on Supervisory Reporting

• The peer review of the ITS was presented, highlighting best practices and the need for convergence across the EU.
• The exercise included on-site visits to all CAs, including EFTA countries and ECB/SSM.

Conclusion

• The BoS supported the peer review findings and the publication of the report.