EBA欧洲银行-Report-on-the-functioning-of-supervisory-colleges-in-2015_65页_1mb

Summary of the 2015 Report on the Functioning of Supervisory Colleges

Core Content

The 2015 report provides an overview of the functioning of supervisory colleges across the European Union, focusing on their re-establishment, organisational aspects, and the quality of their activities. It outlines the EBA's role in monitoring and supporting these colleges, and highlights both achievements and challenges in their operation.

Main Viewpoints

• The EBA sets annual action plans to improve the functioning of supervisory colleges, and the 2015 plan was largely fulfilled.
• The year 2015 was a milestone in the re-establishment of supervisory colleges, driven by the implementation of the Single Supervisory Mechanism (SSM) and new regulatory requirements.
• Supervisory colleges are structured to facilitate cooperation between EU and non-EU authorities, and their reorganisation involved changes in membership and observership statuses.
• The EBA introduced a mapping template to help colleges identify and assess the significance of group entities, which became a key tool in their operations.
• The WCCA (Written Coordination and Cooperation Arrangements) was central to the functioning of colleges, with most colleges developing new WCCA, though finalisation was incomplete for many.
• The EBA provided support and guidance to colleges, particularly in the development of WCCA and SEPs (Supervisory Examination Programmes).

Key Information

1. Identification of EEA Colleges and Selection of Monitored Colleges

• The EBA identified 134 EEA cross-border banking groups, with 68 active colleges.
• 16 colleges related to EEA groups under direct SSM supervision ceased to exist in 2015 due to the location of subsidiaries and branches in SSM countries.
• 135 third-country banking groups were also identified, with seven active colleges at the EEA sub-consolidated level.
• The EBA selected 23 closely monitored colleges and 13 colleges followed on a thematic basis from a total of 75 active colleges.

2. Organisational Aspects of College Work

• Competent authorities invested significant effort in reorganising colleges, especially in the first two quarters of 2015.
• All closely monitored colleges developed and shared mapping templates for group entities, but 65% failed to cover all credit institutions.
• 96% of closely monitored colleges developed WCCA, which were well-structured and comprehensive.
• All colleges adopted SEPs, but concerns remain regarding the lack of joint activities and insufficient information on resources committed.

3. Level and Quality of Interaction

• 74% of closely monitored colleges exceeded the EBA's expectations for minimum interaction, holding at least two physical meetings and quarterly conference calls.
• The quality of meetings improved, supported by well-structured agendas and sufficient time for discussions.
• However, meeting documents were often shared only 1-2 days before the meeting, affecting the preparation of participants.

4. Group Risk Assessment and Liquidity Risk Assessment

• All closely monitored colleges communicated relevant timelines for risk assessments.
• The quality of group risk assessment reports was generally good, with all material risks captured.
• However, incomplete information on the breakdown of SREP capital requirements by risk type affected the reasoning of joint decisions.
• The formulation of additional capital requirements was inconsistent, with 65% of colleges not expressing them in terms of TSCR.

5. Joint Decisions on Capital and Liquidity

• 78% of closely monitored colleges had formal joint decisions on capital and liquidity finalised by the end of 2015.
• However, 26% failed to circulate the final group risk assessment, and 35% failed to circulate the final liquidity risk assessment, leading to confusion in the joint decision process.
• The process for developing joint decisions was not always aligned with the regulatory framework, especially regarding the timing of consultations.

6. Recovery Plan Assessments

• 19 out of 23 recovery plans were submitted by closely monitored colleges.
• A formal joint decision process was initiated for most of these plans.
• Challenges remained in handling pre-existing individual recovery plans and requests from host authorities outside the joint decision process.

7. EBA Tools and Support

• The EBA IT collaboration tool and the Quarterly Colleges Newsletter were used to facilitate college operations.
• EBA staff provided support and guidance throughout the year, especially in the development and finalisation of WCCA and SEPs.

Conclusion and Next Steps

• The report concludes that while significant progress was made in the functioning of supervisory colleges, there are still areas needing improvement, particularly in the timely circulation of documents and the completeness of information.
• The EBA encourages further development of mapping templates and WCCA to ensure comprehensive and consistent cooperation between supervisory authorities.