The European Banking Authority (EBA) has published its annual assessment of EU colleges of supervisors, responsible for the oversight of cross-border banks.
The report notes that 2014 was a transitional year for supervisory colleges, with important changes taking place in the institutional setting of Eurozone banks, which came under European Central Bank supervision. This was combined with the Asset Quality Review and EU-wide stress test exercise, and important developments in EU legislation with the CRD introducing new tasks for supervisory colleges as a joint decision on liquidity.
The report also identifies key activities for the effective oversight of EU cross-border banking groups in 2015. The report introduces items for supervisory attention in 2015, including conduct risk, information technology risks and the need for effective decisions on recovery plans. In 2015, close monitoring of capital plans, as part of their regular assessments, will also be vital as a follow up to last year’s stress tests. This is to ensure that EU banks preserve their strong capital positions and facilitate investigations of potential future weaknesses. In addition, supervisors will closely monitor credit risk management and undertake benchmarking of internal model outcomes.
View EBA reviews work of EU colleges of supervisors for cross-border banking groups, 16 April 2015