EBA欧洲银行-EBA-BS-2014-151v1-28Final-Minutes-BoS-Telcon-26-March29_5页_213kb

EBA Board of Supervisors Teleconference Summary – 26 March 2014

Core Content

The EBA Board of Supervisors (BoS) conducted a teleconference on 26 March 2014 to discuss the roadmap for credit risk deliverables and the detailed work plan for the finalization of SME and residential mortgage portfolio analyses. The meeting aimed to align the EBA's work with legislative requirements and ensure coordination with national competent authorities (NCAs) and other regulatory bodies.

Agenda Item 1: Road Map for Credit Risk Deliverables

Main Points

• The EBA Chairperson, Andrea Enria, proposed a roadmap to prioritise the delivery of regulatory technical standards (RTS) and guidelines (GL) under Directive 2013/36/EU and Regulation (EU) No 575/2013 (CRR).
• The proposed roadmap outlines deadlines for the submission of specific credit risk deliverables for 2014 and onwards.
• Key deliverables include:
  • RTS on assessment methodology of the IRB approach (Articles 144(2), 173(3), and 180(3b) CRR) – to be submitted by end of 2014.
  • RTS on permanent partial use and roll-out plan (Articles 148(6), 150(3), and 152(95) CRR) – to be submitted by end of 2014.
  • RTS on mortgages risk-weight and LGD floors (Articles 124(4) and 164(5) CRR) – to be submitted by end of 2014.
  • RTS on downturn LGD/CCF conditions (Articles 181(3a) and 182(4a) CRR) – to be submitted by mid-2015.
  • RTS on materiality threshold on defaulted exposures (Article 178(6) CRR) – finalised by end of 2014.
  • GL on treatment of defaulted assets (computation of IRB shortfall) – to be submitted by mid-2014.
  • Remaining GLs, including those on default definition (Article 178(7) CRR) and Article 502 CRR, are to be finalised by end of 2015.

Key Decisions and Concerns

• The European Commission representative supported the prioritisation and sought clarification on the delay for the RTS on eligible collateral (Article 194(10) CRR), which was postponed by six months.
• A BoS member raised concerns about the resource implications of the legislative framework, particularly regarding the comparability report on the IRB approach with respect to cyclicality of capital requirements.
• Another BoS member suggested limiting the roadmap to RTSs mandated by legislation and focusing on the treatment of defaulted assets, emphasizing the need to avoid over-reliance on guidelines and ensure coordination with Basel initiatives.
• The EBA confirmed that the delay for the RTS on eligible collateral would not impact the delivery of the Article 57 CRD work.

Conclusion

• There was broad agreement with the proposed roadmap.
• A letter would be sent to the European Commission outlining the EBA's priorities and revised timelines.
• The workload and resource constraints were acknowledged, with the EBA committing to include the Article 502 CRR GLs in the 2015 work programme.

Agenda Item 2: TCOR Detailed Work Plan for SME and Residential Mortgage Portfolio Analyses

Main Points

• The Task Force on Consistency of Outcomes in Risk Weighted Assets (TCOR) was tasked with analyzing SME and residential mortgage portfolios at the December 2013 BoS meeting.
• TCOR has initiated work on a robust framework for identifying outliers, supported by discussions with NCAs.
• The "drill-down" investigation for residential mortgages includes parameters such as loan-to-value, loan-to-income, debt-to-service, and credit risk mitigants.

Proposed Work Plan

• The finalisation of the exercise would involve:
  • Further interaction with NCAs.
  • Use of the ad-hoc bank tool for qualitative assessments of internal approaches.
  • Interviews/meetings between the EBA and NCAs.
• A report on the extra analyses would be presented to the BoS at its May meeting, with a decision on whether to publish a more granular report.
• NCAs would submit their assessments by June, and the EBA would prepare final outcomes for the July BoS meeting.

Concerns and Suggestions

• One BoS member expressed concerns about the workload and noted that the exercise would only target outlier banks, which was confirmed.
• Other members supported the plan but highlighted workload concerns and the need to translate templates into policy options, such as assessing whether RWA calculations reflect actual losses.
• The Chairperson suggested:
  • Preparing a high-level communication message for banks.
  • Holding an open discussion on the bank-by-bank results before sharing with the BoS.

Conclusion

• The BoS Members agreed with the proposed TCOR work plan.
• The report would be presented at the May meeting for a decision on publication.
• NCAs would be involved in defining the scope and submitting assessments.
• Further engagement with Members and NCAs would occur if needed.
• A discussion on overall feedback would be tabled for the June meeting if feasible.

Participants

Voting Members and Alternates

Observers

Institutions