The European Banking Authority (EBA) has published a revised work programme for 2016. The EBA explains that due to budget constraints and available resources, the European Supervisory Authority has carried out a reprioritisation exercise.
The EBA’s revised key priorities for 2016 are:
- promoting a common approach to the calibration of the leverage ratio, enhancing the framework for credit risk and reviewing the impact of banking regulation, including the promotion of the Capital Markets Union development;
- promoting convergence in supervisory approaches to ensure comparability and consistency in supervisory outcomes across the Single Market, including Pillar 2 and banks’ internal models. At the same time the repair of EU banks will continue with a focus on addressing Europe’s high levels of non-performing loans and assessing the resilience of banks in the 2016 EU wide stress test;
- concluding the new crisis management framework (which includes the Bank Recovery and Resolution Directive, the Deposit Guarantee Schemes Directive and the Single Resolution Mechanism), in particular finalising requirements for loss absorbing capacity and ensuring its consistent implementation across EU Member States; and
- enhancing the framework for the protection of consumers and the monitoring of financial innovation and preparing for mandates under the revised Payments Services Directive.
The EBA has decided to postpone to 2017 its work on credit risk mitigation, the guidelines on intraday liquidity risk and the regulatory technical standards (RTS) on consolidated methods and RTS on central contact points under the revised Payments Services Directive. The EBA will also have to delay the integration of some pieces of legislation and their related technical standards into Q&As and will need to reduce its frequency of its remuneration benchmarking and high earners data reports.
Finally, the EBA will not be able to commit at the desired level in areas such as resolution planning and colleges. The work on benchmarking of Pillar 2 approaches will be reduced and assessments of equivalence in third countries halted.
View EBA revises work programme for 2016, 26 February 2016