On 11 May 2022, the European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021.

Among other things the annual report notes:

  • Member State competent authorities (NCAs) made progress in the implementation of the EBA Guidelines on supervisory review and evaluation process (SREP).
  • There needs to be more harmonised practices among NCAs in the determination of capital add-ons.
  • Pillar 2 Requirements are now legally binding across the EU and consistently considered when calculating the trigger point for the maximum distributable amount restrictions.
  • There is still room for further convergence in the use of internal capital adequacy assessment as well as in the consistent treatment of risks across the EU and in the setting of the Pillar 2 Guidance.