The European Banking Authority (EBA) has published the following:
- Consultation Paper – Draft guidelines on the revised common procedures and methodologies for the supervisory review and evaluation process (SREP) and supervisory stress testing. The revisions to the SREP guidelines reflect the ongoing policy initiatives related to Pillar 2/SREP, which include amongst other things, the introduction of Pillar 2 Capital Guidance, the integration of supervisory stress testing requirements and supervisory assessment of banks’ stress testing from the EBA consultation on draft guidelines on stress testing and supervisory stress testing, clarification of certain aspects on scoring, further details on the articulation of total SREP capital requirements and overall capital requirements and various consistency checks with relevant EBA standards and guidelines that came into force after the publication of the original SREP guidelines in 2014. The deadline for comments on the Consultation Paper is 31 January 2018;
- Consultation Paper – Draft guidelines on institution’s stress testing. The draft guidelines seek to establish and develop the following concepts: (i) the taxonomy of stress testing; (ii) the description of types of stress test exercises; (iii) the reverse stress testing process for both regular stress testing and recovery planning purposes; and (iv) additional issues that have gained importance in the stress testing programme and need to be incorporated and properly defined, such as conduct risk and litigation costs, foreign exchange lending risk, interaction between solvency stress tests and liquidity stress tests, business models and data aggregation. The deadline for comments on the Consultation Paper is 31 January 2018; and
- Consultation Paper – Draft guidelines on the management of interest rate risk arising from non-trading book activities. The aim of the draft guidelines is to set out supervisory expectations regarding the management of interest rate risk arising from non-trading book activities. The guidelines build on the EBA guidelines on the management of interest rate risk arising from non-trading activities published on 22 May 2015 and take account of existing supervisory expectations and practices including the standards on interest rate risk in the banking book published by the Basel Committee on Banking Supervision in April 2016. The deadline for comments on the Consultation Paper is 31 January 2018.
View EBA launches consultations to strengthen the Pillar 2 framework, 31 October 2017