EBA欧洲银行-EBA-BS-2014-127v1-28Final-Minutes-BoS-Meeting-25-26-February29_16页_368kb

EBA BS 2014 127v1 Summary

Core Content

The EBA Board of Supervisors meeting held on 25-26 February 2014 in London addressed a variety of key topics, including changes in board composition, risk and vulnerabilities in the EU banking sector, leverage ratio alignment with Basel III, market infrastructures, stress testing preparation, and other regulatory and operational matters. The meeting aimed to ensure the EBA's alignment with EU and international regulatory standards while promoting supervisory consistency and clarity.

Main Points and Key Information

Agenda Item 2: Opening, Welcome & Approval of the Agenda

• Board Composition Changes:
  • Jukka Vesala stepped down, replaced by Anneli Tuominen (BoS Member) and Marja Nykanen (Alternate).
  • Danièle Nouy stepped down, replaced by Edouard Fernandez-Bollo (BoS Member) and Frederic Visnovsky (Alternate).
  • Raul Malmstein was replaced by Andres Kurgpöld (BoS Member) and Kilvar Kessler (Alternate).
  • Ray Vella replaced Karol Gabaretta as Alternate.
  • Andrea Pilati replaced Roberto Rinaldi as Alternate.
• The meeting agenda and minutes from previous meetings were approved.
• Two further BoS meetings via conference call were planned for the EU-wide 2014 stress test.

Agenda Item 3: Election for MB Member and Appointment of Mediation Panel Members

• Danièle Nouy resigned from the Management Board, creating a vacancy.
• Two candidates were nominated for the MB position.
• A vote by simple majority was held, and Luigi Federico Signorini was appointed as MB Member with Andrea Pilati as Alternate.
• The Mediation Panel was reappointed with Helmut Ettl, David Rozumek, Fernando Vargas, Andrzej Reich, Pedro Duarte Neves and Andrew Bailey as Members, and Jo Swyngedouw, Ulrik Nødgaard, Andres Kurgpöld and Cyril Roux as Alternates, in compliance with Article 41(2) of the EBA Regulation.

Agenda Item 4: Update on Risk and Vulnerabilities

• The EBA Director of Oversight highlighted key risks: capital evolution, profitability, deleveraging, asset quality, emerging market risks, mortgages, IT/cyber risks, and conduct risks.
• Capital ratios improved due to RWA reductions, but capital levels did not increase. Some banks increased cash dividends.
• IT and legal risks were noted as growing concerns, especially due to customer mis-selling and collusion.
• The EBA will consider these insights when designing stress test scenarios.

Agenda Item 5: Leverage Ratio Alignment with Basel III

• The EBA conducted a policy analysis and quantitative impact assessment on aligning the CRR leverage ratio with Basel III.
• Two interpretations of the CRR text on Secured Financing Transactions (SFTs) were discussed.
• BoS Members generally supported the report and preferred the second CRR interpretation if the delegated act does not modify the treatment of SFTs.

Agenda Item 6: High Quality Securitisations

• The EBA was asked to advise on promoting a safe securitisation market, particularly regarding prudential treatment.
• The EBA noted that securitisation products performed differently during the 2007-2009 crisis.
• New EU regulations addressed shortcomings in securitisation, including retention, transparency, and CRA rules.
• The EBA will await the outcomes of the BCBS/IOSCO working group and the Joint Committee Task Force before proceeding.

Agenda Item 7: Market Infrastructures – Draft CP on EMIR Margining Standards

• The draft RTS included a full ban on re-use and re-hypothecation, which is more stringent than international standards.
• A new question was proposed to assess the exemption of UCITS-compliant covered bond programmes from collateral posting.
• No final decision was made due to unresolved technical issues; a written approval process was agreed for later.

Agenda Item 8: Market Risk – Draft CP on Prudent Valuation

• The final draft RTS on prudent valuation was endorsed by qualified majority.
• Three options for the combination of approaches were discussed, with Option 3 (middle ground) being the most supported.
• The EBA will proceed with submitting the draft RTS to the Commission.

Agenda Item 9: Preparation of the 2014 EU-wide Stress Test

• The methodology aimed to incorporate lessons from the 2011 stress test and clarify the scope and limitations of EU-wide stress tests.
• Key issues included funding methodology, NII constraints, LTRO, static balance sheet assumptions, and old defaulted assets.
• The final methodology and templates were agreed to be published by the end of April 2014 after informal industry discussion.

Agenda Item 10: European Supervisors Platform (ESP) Progress Report

• The ESP project aims to establish a harmonised European supervisory reporting framework.
• The EBA will collect data from around 200 institutions under CRR/CRD IV, enhancing its risk assessment capabilities.
• Close cooperation with NCAs is required for platform testing, data quality, and transmission channels.
• The EBA will adapt its response routines and IT capabilities to support the platform.

Agenda Item 11: Proposal for Change of Approval Process for XBRL Reporting Formats

• The XBRL taxonomy and Data Point Model are under the EBA’s responsibility.
• A proposal was made to delegate XBRL taxonomy approval to the XBRL Subgroup, which includes subject matter experts from NCAs.
• The Management Board will be involved in any decisions with budgetary implications.
• The proposal was approved by simple majority.

Agenda Item 12: EBA Office Solution (Verbal Update)

• The EBA's Evaluation Committee proposed new office premises in One Canada Square, Canary Wharf.
• The move was expected for December 2014.
• The Council had no objection to the proposal, but the Parliament had not yet responded.
• The BoS supported the proposal.

Agenda Item 13: Final Draft Technical Standard on Additional Liquidity Outflows

• The final draft RTS on additional liquidity outflows was not approved for submission to the Commission.
• Further refinement was required before a revised proposal could be submitted for approval via written procedure.

Agenda Item 14: Report on Capital Preservation Recommendation Data Collection

• The EBA monitored the implementation of its capital preservation recommendation under CRR/CRD IV.
• Most banks maintained or increased core Tier 1 capital, while RWAs decreased.
• 13 waiver requests were received, and most were not approved.
• A revised report was agreed to be published, and EBA staff will incorporate findings into future publications.

Agenda Item 15: Recovery Plans

• The EBA updated the BoS on the implementation of its January 2013 Recommendation on recovery plans.
• 36 banks submitted recovery plans to competent authorities, with 25 colleges informed about their development.
• The EBA staff compared 20 recovery plans and highlighted progress in governance, indicators, scenarios, and recovery options.
• The BoS encouraged continued work on recovery planning and the use of reverse stress testing.

Agenda Item 16: Internal Impact Study Group (ISG) Reports

• The public report on Basel III QIS showed convergence towards Basel III thresholds.
• Group 1 banks increased their average CET1 ratio by 0.8 percentage points.
• The average LCR was 104% for Group 1 and 132% for Group 2 banks.
• The NSFR was not published due to data limitations.
• The EBA will use ITS data for future monitoring reports.

Agenda Item 17: Possible Delay of Asset Encumbrance Reporting

• A delay in the implementation of the ITS on asset encumbrance was discussed due to the burden on institutions.
• Several NCAs requested a delay in the first reporting date.
• The EBA will assess the feasibility of such a delay.