The European Banking Authority (EBA) has published its 2015 Annual Report. The Annual Report provides a detailed account of all the work the European Supervisory Authority has achieved in the past year and anticipates the key areas of focus in the coming years.

Page 71 onwards discusses the EBA’s key areas of focus for 2016. This includes:

  • promoting a common approach to the calibration of the leverage ratio (page 71);
  • enhancing the framework for credit risk (page 72);
  • reviewing the impact of proportionality (page 72);
  • resolving Europe’s legacy assets (page 74);
  • facilitating the implementation and understanding of IFRS 9 in relation to banks in the EU (page 74);
  • promoting compliance, comparability and consistency for supervisory practices in the EU (page 74);
  • monitoring supervisory convergence through onsite reviews (page 75);
  • enhancing the consistency of risk weighted assets (page 77­); and
  • revised version of Pillar 3 (page 78).

Another key activity for the EBA in 2016 will be the development of the regulatory technical standards (RTS) and guidelines under the revised Payment Services Directive (PSD2) and the Interchange Fee Regulation (IFR).

The PSD2 entered into force in January 2016 and applies from January 2018 onwards. It confers eleven mandates on the EBA, some of which the EBA will have to deliver within 12 months of entry into force, while others are due within 18 or 24 months. By way of following up on the three discussion papers and consultation papers it had published in December 2015, the EBA will analyse the responses received to the discussion paper on strong customer authentication and secure communication and will progress to issue a consultation paper in the summer of 2016. The EBA will also finalise the RTS on the framework for cooperation and exchange of information between competent authorities for passporting. Also, the EBA will consult on the guidelines covering the criteria to be considered by competent authorities when stipulating the minimum monetary amount of professional indemnity insurance, the authorisation of payment institutions, and complaints procedures for national competent authorities. It will also consult on RTS on supervision and working with the European Central Bank will finalise RTS under the IFR to ensure that payment card schemes and processing entities are independent from one another in terms of accounting, organisation and decision-making processes.

View EBA publishes its 2015 Annual Report, 2016