EBA suggests RTS corrections: EBA has suggested changes to two of the Regulatory Technical Standards (RTS) the Commission adopted under the fourth Capital Requirements Directive (CRD 4). EBA says the Commission changed EBA's suggested text and in doing so inadvertently altered the meaning. It says the texts should be changed back to how EBA originally drafted them. The RTS relate to:

  • the treatment of non-delta risk of options in the standardised market risk approach. EBA had said that only institutions that exclusively purchase options and warrants can use the simplified approach, but they do not have to do so. The Commission's version had obliged these institutions to use the simplified approach, while not preventing other institutions from doing so; and
  • the criteria to identify categories of staff whose professional activities have a material impact on an institution's risk profile. EBA's intention was that there should be a refutable presumption that any staff whose total remuneration takes them into the same remuneration bracket as senior management and risk takers will be staff whose professional activities have a material impact on the institution’s risk profile. It says the Commission's changes did not reflect this.

(Source: EBA Suggests RTS Corrections)

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

EBA status update on liquidity monitoring: EBA has published an update on the application date of its final draft Implementing Technical Standards (ITS) on additional liquidity monitoring metrics. EBA originally submitted the final draft ITS to the Commission in December 2013, with a proposed application date of 1 July 2015. As the Commission has not yet adopted the ITS, it is highly likely that the application date, which will be specified once the ITS are published in the OJEU, will be postponed by at least three months. (Source: EBA Updates on the Status of its Final Draft Technical Standards on Additional Liquidity Monitoring Metrics)

EBA reports on macroprudential measures: EBA has published a report on macroprudential policy measures throughout the EU with a specific focus on the interaction of macro- and microprudential measures under the CRD 4 package. (Source: EBA Reports on Macroprudential Measures)

EBA publishes management suitability assessment report: EBA has published its peer review report on assessing suitability of members of the management body and key function holders within banks. Despite most authorities being fully or largely compliant with EBA's guidelines, the peer review assessment found supervisory practices still do not converge enough. The report also reveals some best practices, including assessing candidates for key positions by performing interviews, applying the proportionality principle and the criteria used to assess suitability. EBA proposes to incorporate these identified best practices in the guidelines and will consult on an update in early 2016. EBA might also submit an opinion to the Commission suggesting legislative amendments that would allow for enhanced convergence of supervisory practices in this area. (Source: EBA Publishes Management Suitability Assessment Report)