EBA欧洲银行-Final-Minutes_-BSG-Meeting-4-July-2018_10页_237kb

Banking Stakeholder Group (BSG) DRAFT Minutes Summary

Meeting Details

• Date: 4 July 2018
• Time: 09:30–16:30
• Location: London

Core Content Overview

The meeting was held between the Banking Stakeholder Group (BSG) and the European Banking Authority (EBA), focusing on updates on EBA activities, regulatory developments, and the BSG's role in shaping EU banking policy.

Main Points and Key Discussions

Item 1: Welcome and Adoption of the Agenda

• The BSG and EBA Chairpersons welcomed members.
• The agenda was approved.
• A BSG member requested clarification on the absence of a risk update in the agenda. The EBA staff explained that the next risk dashboard will be published after this meeting, with a risk update planned for the October BSG meeting.
• The EBA Chairman suggested that BSG members prepare a risk presentation for the next meeting.
• The EBA will assess all applications for BSG renewal during summer, with finalisation expected by the end of September.

Item 2: BSG Update on Latest Developments

• The BSG Chairperson outlined the End of Term report, including BSG role, main activities, and work by five working groups.
• The report will serve as the BSG's legacy, summarising contributions, lessons learned, and challenges.
• The BSG Chairperson presented open consultations and requested volunteers for future consultations.

Item 3: EBA Update on General Developments

• EBA Relocation to Paris: The EBA has identified a new building but needs final approval from the European Parliament and changes to its founding regulation. Measures to retain staff include teleworking facilities and vacancy notices.
• Brexit Opinion: The EBA issued an opinion urging EU institutions to increase preparedness for Brexit consequences, particularly in data protection and information sharing.
• Binding Mediation Decision: The EBA published its first binding mediation decision between the SRB and the National Bank of Romania (NBR) on resolution planning.
• BUL Cases: Three BUL cases were opened, with one closed due to alignment with EU law. Two ongoing cases relate to AML in Malta and Latvia.
• AML Strategy: The EBA highlighted increased supervisory workload and the need for more capacity. They also mentioned the importance of respecting national responsibilities in risk allocation.
• Joint Consultation Papers (CPs): The EBA presented CPs on the Clearing Obligation and Risk Mitigation Techniques under EMIR, with special treatment for STS SSPEs and covered bonds.
• Regulatory Framework: The EBA clarified that for joint mandates, the drafting process is led by one ESA, but approval requires consensus among all ESAs.

Item 4: Call for Advice on Own Fund Requirements

• The EBA received a Call for Advice (CfA) from the European Commission to revise own fund requirements for credit, operational, market, and credit valuation adjustment risks.
• The EBA is preparing templates and data collection aligned with the Basel monitoring exercise, with submission deadlines set for 14 September and finalisation by mid-November.
• Concerns were raised about the tight timeline, the impact on banks' business models, and the need for exemptions, translations, and benchmarks for RWA variability.
• The EBA clarified that the data collection is separate from benchmarking and that translations would delay the process.

Item 5: Regulatory Sandboxes and ESNs

• The EBA updated the BSG on regulatory sandboxes and innovation hubs, including the launch of the FinTech Knowledge Hub.
• BSG members requested clarification on consumer protection evaluation, geographic distinctions in innovations, and exit mechanisms from sandboxes.
• The EBA mentioned that differences in innovations reflect market activity and that consumer protection and level playing field issues are under review.
• The EBA also presented the Call for Advice on European Secured Notes (ESNs), highlighting the potential of dual recourse instruments for SMEs but expressing concerns about infrastructure ESNs.
• BSG members raised questions on MREL/TLAC treatment, impact on the ESN market, and the need for impact assessments on specific SME segments.

Item 6: Commission SBBS Proposal

• The EBA presented the Commission's proposal on sovereign bond-backed securities (SBBS), based on ESRB task force work.
• The proposal includes rules on SBBS definition, transparency, supervision, and legal amendments.
• BSG members expressed concerns about the liquidity of the instrument and the lack of clarity on riskier tranches, debt collateralisation, and stress testing.
• The EBA clarified that diversification is embedded in the design and that further discussion is needed on the treatment of other tranches.

Item 7: BSG Members' Presentations

• US Financial Regulation Reforms: A BSG member presented the US banking system and the Crapo Bill, which aims to reduce regulatory burden and enhance consumer protection. The EBA noted the US administration's commitment to international standards.
• Financial System Manipulation (Vilibor Case): A BSG member discussed the 2008 credit crunch in Lithuania due to liquidity manipulation, suggesting stricter regulations on repossessed asset re-selling. The EBA mentioned ongoing initiatives to reduce benchmark manipulation and enhance resilience.

Participants

BSG Members:

• Santiago Fernández de Lis (BBVA) – Chairperson
• Gerda Holzinger-Burgstaller (Erste Group Bank AG, Austria)
• Anne Fily (Finance Watch, Belgium)
• Fryni Michael (Cyprus Consumers Association, Cyprus)
• Søren Holm (Nyckredit, Denmark)
• Michel Bilger (Crédit Agricole, France)
• Christophe Nijdam (Independent, France)
• Mark Roach (Ver.di, Germany)
• Ernst Eichenseher (UniCredit Group, Germany)
• Sabine Masuch (Association of Private Bausparkassen, Germany)
• Nikos Daskalakis (GSEVEE, Greece)
• Dermott Jewell (Consumers Association of Ireland, Ireland)
• Sergio Lugaresi (Italian banking association, Italy)
• Giovanni Petrella (Catholic University, Milan, Italy)
• Giedrius Steponkus (Lithuanian Investors Association, Lithuania)
• Monika Marcinkowska (University of Lodz, Poland)
• Alin Iacob (Association of Romanian Financial Services Users, Romania)
• Angel Berges (AFI-UAM, Spain)
• Simon Hills (UK Finance, UK)
• Dominic Lindley (Independent, UK)
• Jesper Bo Nielsen (FSU-dk, Denmark)
• Luigi Guiso (University of Rome Tor Vergata, Italy)
• Herve Guider (European Association of Co-operative Banks, Belgium)

EBA Staff:

• Andrea Enria – EBA Chairperson
• Adam Farkas – EBA Executive Director
• Ester Botica Alonso, Philippe Allard, Michele Zarpellon, Massimiliano Rimarchi, Dorota Siwek, Helene Oger-Zaher, Dirk Haubrich, Slavka Eley, Elisabeth Noble, Christian Moor, Ruxandra Popescu

Key Takeaways

• The EBA is working on multiple regulatory initiatives, including the End of Term report, mediation decisions, and SBBS proposals.
• The BSG is actively involved in shaping these initiatives and providing feedback.
• Concerns were raised about timelines, transparency, and the impact of new regulations on banks, especially small institutions and FinTech.
• The EBA is focusing on harmonisation of regulatory practices, especially in the context of FinTech and cross-border operations.
• Brexit-related preparedness and AML supervision remain key priorities for the EBA.