EBA updates Q&As: EBA has updated its single rulebook Q&As to include seven new items. (Source:Single Rulebook Q&As)

EBA updates risk dashboard: EBA has updated its risk dashboard summarising the risks and vulnerabilities in the EU banking sector on the basis of the development of Key Risk Indicators from 55 banks for the third quarter of 2014. The dashboard shows that:

  • the positive trend of EU banks' capital positions continues, with the Common Equity Tier 1 (CET1) ratio reaching 12.1% in Q3 2014 (11.8% in Q2);
  • levels of non-performing loans remain stable, but still generally very high, despite divergences across banks;
  • profitability levels remain volatile and predominantly at low levels throughout the sector;
  • returns continue by and large to be subdued, being severely affected by the weak macroeconomic environment, the clean-up of some major banks' balance sheets, as well as litigation costs;
  • profitability dispersion across banks and jurisdictions is material, but continues to show a narrowing trend throughout 2014;
  • balance sheets' structures continue to shift towards less indebtedness with the loan-to-deposit ratio at an all-time low of 109.3%;
  • share of customer deposit to total liabilities is at 49.2%, a record high for the available data; and
  • total assets are also on the rise.

This edition of the risk dashboard is the first to have balance sheet information based on the supervisory reporting standards from FINREP, the Financial Reporting framework for financial institutions across the EU. (Source: EBA Updates its Risk Dashboard for EU Banking Sector)

EBA publishes assessment methodology responses: EBA has published the responses to its consultation paper on RTS on assessment methodology for the internal ratings based (IRB) approach. (Source: RTS on Assessment Methodology for IRB Approach)