EBA欧洲银行-EBA-BS-2012-095-BoS-telco-minutes-22-May2012PUBLIC_6页_230kb

EBA Board of Supervisors Teleconference Summary (22nd May 2012)

Core Content

The EBA Board of Supervisors convened a teleconference on 22nd May 2012 to discuss the follow-up to the 2011 Recapitalisation Recommendation. The meeting focused on the interaction between the capital definition used in the 2011 Recommendation and the transition to the CRD4/CRR framework. The EBA staff presented a note outlining the implications of this transition, and the discussion centered on whether the 2011 Recommendation should be rescinded or maintained.

Main Views and Positions

• EBA Staff Position: The staff recommended continuing to apply the 2011 Recommendation using the unchanged definition of capital. They argued that the Recommendation should remain in force until external conditions improve sufficiently for the Board to review and rescind it.

• Members' Opinions:

  • Some Members supported dropping the Recommendation by 31 December 2012, citing the potential for confusion among banks operating under two different capital frameworks.
  • Others advocated for maintaining the Recommendation until the next stress test, emphasizing the importance of stability in the current market conditions.

• Consensus:

  • There was a general agreement that supervisors should not allow banks to deplete their current absolute capital levels.
  • One Member suggested that if the Recommendation is maintained, the current definitions should also be applied to the calculation of Risk-Weighted Assets (RWAs).

• Sovereign Buffer:

  • The Chairperson proposed that the sovereign buffer should operate in a parallel track, remaining in place until the situation improves, with the possibility of reconsideration and review at any time.

Key Information

• The discussion was informed by a prior meeting (MB meeting on 16 May 2012) where it was agreed to keep the buffer calculated under current rules.
• The outcome of today's discussion will be compiled into a paper for future Board of Supervisors (BoS) meetings.
• The Chairperson, Andrea Enria, emphasized the importance of conserving capital at this stage and preventing premature capital release.
• The majority of the Board appeared to support the conservation of capital and the continued application of the 2011 Recommendation.

Participants

Chairperson and Alternate Chairperson

• Andrea Enria (Chairperson)
• Matthew Elderfield (Alternate Chairperson)

Country Representatives

Country Observers

• Norway: Morten Baltzersen
• Iceland: (Not specified)
• Lichtenstein: Rolf Brueggemann
• Croatia: (Not specified)

Institutions Representatives

• European Commission: Dominique Thienpont
• European Central Bank: Mauro Grande
• ESRB: (Not specified)
• EIOPA: (Not specified)
• ESMA: Verena Ross

EBA Staff and Officials

• EBA Executive Director: Adam Farkas
• EBA Director Oversight: Piers Haben
• EBA Director Regulation: Isabelle Vaillant
• EBA Staff: Joseph Mifsud and Patricia Juanes

Conclusion

The meeting highlighted the need for clarity and consistency in capital definitions and the importance of maintaining regulatory stability during the transition to the CRD4/CRR framework. While there were differing opinions on the timeline for rescinding the 2011 Recommendation, the consensus was to prioritize capital conservation and avoid premature changes to the current framework. The final decision will be reflected in a subsequent paper and may influence future regulatory actions.