EBA欧洲银行-EBA-BS-2014-028-28Final-Minutes-Telco-BoS-27-January-201429_6页_197kb

2014 EBA BoS Conference Call Summary

Agenda Item 1: Communication on the Main Features of the 2014 EU-Wide Stress Test

Core Content

The EBA Board of Supervisors (BoS) discussed the main features of the 2014 EU-Wide Stress Test. The meeting aimed to finalize the communication strategy and timeline for the stress test, with a focus on ensuring comparability and transparency while allowing national supervisory flexibility.

Main Features of the Stress Test

• A common macro-economic scenario and 3-year time horizon were agreed upon.
• A common methodology was established, including:
  • Capital thresholds: 8% in the baseline scenario and 5.5% in the adverse scenario.
  • A common definition of capital, with national transitional rules in place by the end of 2016.
  • Static balance sheet assumptions.
  • Risk coverage and scope of consolidation at the highest level.
  • A sample size of at least 50% national coverage.

Flexibility for Competent Authorities

Competent authorities were allowed flexibility in:

• Applying additional sensitivities and requesting additional data.
• Using stricter capital definitions or higher hurdle rates.
• Considering balance sheet dynamics and management actions in supervisory responses.
• Conducting stress tests on subsidiaries without publishing the results under the EBA umbrella.

Communication and Timeline

• The EBA would publish its communication before the ECB's scheduled communication.
• The timeline was revised to be less granular, with the final methodology published by end April/May 2014 and the finalisation of the Stress Test Exercise by end October/November 2014.
• The ECB representative suggested clarifying the role of the ECB in the sample selection and disclosure of results.
• The EU COM representative supported the document but suggested simplifying the timetable, clarifying the ECB's role, and ensuring that sovereign risk treatment was clear.

Conclusion

• The Chairperson proposed that comments be submitted to EBA Staff by the end of the day, and that the document be considered final unless further discussion is needed.
• If at least three Members deemed it necessary, an additional BoS conference call would be convened.

Agenda Item 2: Protocol on Home Host and AQR Stress Tests

Core Content

The BoS reviewed the Protocol on the coordination of Home Host and AQR Stress Tests, which outlines the basic principles, points of contact, and information sharing between competent authorities.

Key Points

• The Protocol was generally supported by Members, though some suggested drafting improvements.
• The ECB representative highlighted the challenging timeline, suggesting potential changes to portfolio selection, methodology (sampling), and conclusion and communication.
• The SSM representative noted that the SREP Decision of 2014 would be made after the AQR and Stress Test results were available.
• The EU COM representative supported the Protocol and suggested keeping it as a "live" document for future updates.

Conclusion

• The Chairperson agreed that the Protocol should remain a "live" document and that the current wording is balanced and provides guidance for annual updates as required by the CRD.
• He also emphasized the need for further discussions on the timing of communication of final results and supervisory follow-up actions.
• The text of the document will be modified to reflect these points.
• The Chairperson concluded that comments should be sent directly to the Director of Oversight by the end of the day.

Participants

Representatives Mentioned

• Dominique Thienpoint
• Ignazio Angeloni
• Francesco Mazzaferro
• Daniel Perez
• Adam Farkas
• Piers Haben
• Slavka Eley, Mario Quagliariello, Joseph Mifsud