On 21 November 2019, the European Banking Authority (EBA) published a set of roadmaps outlining its approach and timelines for delivering the mandates stemming from the risk reduction measures package adopted by the Council of the EU and the European Parliament on 20 May 2019.

The risk reduction package allocates over 100 new mandates to the EBA under the revised Capital Requirements Directive, Capital Requirements Regulation, Bank Recovery and Resolution Directive. These mandates are mainly focused in the areas of:

  • Pillar 2. The EBA will consider how to make the Pillar 2 framework fit for purpose in light of ongoing and new challenges;
  • governance and remuneration. The EBA will contribute to optimising the existing framework with an emphasis on the finalisation of the remuneration deliverables;
  • large exposures. The EBA’s priority will be to complete the framework for determining exposures arising from derivatives;
  • resolution. The EBA’s work aims at facilitating effective resolution planning and preparedness, such as on MREL calibration and monitoring;
  • supervisory reporting. The EBA aims at achieving an efficient reporting framework with enhanced proportionality; and
  • disclosure. The EBA aims to become the EU-wide Pillar 3 hub following the completion of the EUCLID project.

The EBA also intends to publish two further detailed action plans on money laundering and sustainable finance.