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

EBA publishes early intervention guidelines: EBA has published its final guidelines on the triggers for the use of early intervention measures. The guidelines set out the triggers which should prompt regulators to decide to apply the Bank Recovery and Resolution Directive's (BRRD) early intervention measures. The triggers are largely based on the outcomes of the supervisory review and evaluation process (SREP), specifically the scores resulting from the regulatory assessment supervisors should carry out under EBA guidelines. The guidelines recognise that there might be triggers unconnected to SREP but do not provide any quantitative thresholds for indicators that could be perceived as new capital or liquidity requirements. (Source: EBA Publishes its Final Guidelines on Triggers for the Use of Early Intervention Measures)

EBA publishes payment account guidelines: EBA has published guidelines on national provisional lists of the most representative services linked to a payment account and subject to a fee. The guidelines direct regulators as to:

  • how to go about identifying services to be considered for the provisional lists;
  • the exercise of judgement when establishing provisional lists;
  • responding to the Commission and EBA with the provisional lists; 
  • the supporting evidence and data that should be included; and 
  • how to submit the provisional lists.

The guidelines will apply once published in the official languages of the EU. (Source: Guidelines on National Provisional Lists of the Most Representative Services Linked to a Payment Account and Subject to a Fee)

EBA publishes retail product oversight responses: EBA has published the responses to its consultation paper on draft guidelines on product oversight and governance arrangements for retail banking products. It received 19 responses from a range of industry bodies, consumer groups and individual banks. (Source: Guidelines on Product Oversight and Governance Arrangements for Retail Banking Products)

EBA updates reporting taxonomy: EBA has released an update to its taxonomy for supervisory reporting of funding plans and supervisory benchmarking. The update inserts corrections to funding plans and supervisory benchmarking structure. It also specifies how separate variants of the reports apply for remitting individual and consolidated data. The revised taxonomy will apply for reports on funding plans and supervisory benchmarking with reference dates from 31 December 2014 onwards. (Source: EBA Publishes Updated DPM and XBRL Taxonomy for Remittance of Supervisory Reporting of Funding Plans and Supervisory Benchmarking)

EBA issues recovery indicators guidance: EBA has published its final guidelines on indicators for the recovery and resolution plans of EU credit institutions and investment firms as required by the BRRD. The guidelines set out the requirements institutions should follow when developing recovery plans. The minimum list of items that institutions should include in their plans includes both qualitative and quantitative indicators grouped into different categories such as capital, liquidity, profitability and asset quality. It notes where institutions should include macroeconomic and market-based indicators. EBA will use these indicators to identify the points at which appropriate recovery measures may be needed. In addition the guidelines include a list of extra possible indicators. The guidelines will enter into force on 31 July. (Source: EBA Issues Final Guidance on Recovery Indicators)

EBA consults on derivatives valuation: EBA is consulting on regulatory technical standards (RTS) defining the valuation of derivative liabilities for the purpose of bail-in in resolution under the BRRD. It uses a statutory valuation methodology based on the costs or gains that would be incurred by the counterparty in replacing the contract. Derivative counterparties can provide evidence of commercially reasonable replacement trades and determine the close-out amount within a certain deadline; and, if they do not, then resolution authorities will apply their valuation based on mid-market prices and bid-offer spreads. The consultation covers timings of valuations and potential exemptions from the requirement. EBA also takes into account the position for centrally cleared contracts under the European Market Infrastructure Regulation (EMIR) and says resolution authorities will impose their own valuation only where CCPs do not deliver a close-out amount or do not apply default procedures within an agreed deadline. EBA asks for comments by 13 August. (Source: EBA Consults on Derivatives Valuation)

EBA consults on ECAIs' credit assessment ITS: EBA has launched a consultation on draft Implementing Technical Standards (ITS) on the mapping of External Credit Assessment Institutions' (ECAIs) credit assessments for securitisation positions. The draft ITS set out the mapping between credit ratings and credit quality steps that will determine the allocation of appropriate risk weights to credit ratings issued by the ECAIs on securitisations which use the standard approach or the internal ratings based approach. The consultation closes on 7 August. (Source: EBA Consults on Draft Technical Standards on the Mapping of ECAIs Credit Assessments for Securitisation Positions)

EBA consults on lending exposures RTS: EBA is consulting on RTS on specialised lending exposures. The proposed RTS define four classes of specialised lending: project finance, real estate, object finance and commodities finance. For each the draft RTS list factors that institutions should consider and also propose two ways in which these factors could be combined to determine the risk weight assigned to the specialised lending exposure. The approach in these RTS is in line with the Basel framework. (Source:EBA Consults on Technical Standards on Specialised Lending Exposures)