EBA欧洲银行-Supervisory-convergence-report_24页_543kb

EBA Report on Convergence of Supervisory Practices (April 2015)

Core Content

This report by the European Banking Authority (EBA) provides an overview of the progress made in supervisory convergence across the European Economic Area (EEA) under Article 107 of Directive 2013/36/EU. It highlights the importance of harmonising supervisory practices and methodologies to ensure consistent application of the Single Rulebook and to support the development of a level playing field in financial services, especially for cross-border institutions.

Main Findings

1. Risks for the Single Market

• Divergent supervisory practices and outcomes pose a risk to the effective oversight of cross-border groups and the development of a level playing field.
• Convergent practices and methodologies contribute to a balance between necessary supervisory judgment and consistent outcomes in SREP assessments.

2. EBA's Mandate

• The EBA is tasked with promoting supervisory convergence and consistency across the EU.
• Key activities include collecting and assessing information, developing guidelines, conducting peer reviews, and reporting to the EU Parliament and Council annually.

3. Progress in Supervisory Convergence

• Since 2011, there has been significant progress in strengthening supervisory colleges.
• A satisfactory degree of convergence in overall supervisory frameworks has been observed.
• However, differences remain in:
  • Supervisory methodologies
  • Supervisory practices
  • Supervisory outcomes

4. Challenges in Convergence

• Some differences in SREP practices and methodologies continue to hinder cooperation, particularly in capital adequacy decisions.
• The EBA has played a key role in mediating these differences and promoting a common approach.

Key Activities and Outcomes

1. SREP and Stress Testing

• SREP (Supervisory Review and Evaluation Process):

  • SREP is the core instrument of prudential supervision and forms the basis for determining own funds and liquidity.
  • The EBA conducted a comprehensive review of SREP practices between 2012 and 2013, identifying divergences in risk assessment, capital requirements, and ICAAP evaluation.
  • The EBA developed Guidelines for common procedures and methodologies for the supervisory review and evaluation process in 2014 to enhance convergence.
  • These guidelines aim to:
    • Provide a common framework for supervisory review.
    • Establish a link between SREP and resolution settings.
    • Define principles for risk assessment, capital quantification, and ICAAP.

• Stress Testing:

  • The EBA conducted a peer review of stress testing practices in 2012–2013 and identified emerging practices that require updating.
  • The Guidelines on Stress Testing (GL32) are currently under revision to address these developments.
  • The revision will include considerations on taxonomy, types of stress tests, data infrastructure, and reverse stress testing.

2. Internal Approaches Review

• The EBA has been reviewing the ongoing use of internal models approaches for credit and market risk.
• A stock-take of national supervisory frameworks revealed significant differences in the estimation of risk-weighted assets (RWAs).
• These differences are mainly attributed to varying definitions of key elements such as default and downturn conditions.

3. Supervisory Measures and Outcomes

• The EBA's work includes the development of common procedures and methodologies to ensure consistent supervisory outcomes.
• Supervisory measures are intended to be applied uniformly across the Single Market.
• The EBA continues to monitor and promote convergence through training, peer reviews, and benchmarking.

Way Forward

• The EBA will continue to support convergence through:
  • Training for national competent authorities.
  • Peer reviews and benchmarking activities.
  • Monitoring of supervisory practices.
• The implementation of the SREP guidelines is expected to start on 1 January 2016, with a 12-month transition period.
• The EBA's role is crucial in ensuring consistent application of standards and guidelines across the EU, particularly as the ECB takes over direct supervision of significant banks in the euro area.

Conclusion

The EBA report outlines the progress made in supervisory convergence and identifies remaining challenges. It highlights the importance of harmonised supervisory practices for the stability of the Single Market and the development of the Banking Union. The EBA continues to play a central role in promoting convergence through regulatory guidance, training, and ongoing monitoring.