EBA updates Q&As: EBA has published a further updated version of its single banking rulebook questions and answers. (Source: EBA Updates Q&As)

EBA consults on DGS contributions: EBA is consulting on draft guidelines for calculating contributions to Deposit Guarantee Schemes (DGS). EBA proposes methods for calculating ex-ante contributions and on adjusting contributions in line with banks' risk profiles to incentivise good risk behaviours. EBA asks for comment by 11 February 2015. (Source: EBA Consults on DGS Contributions

EBA consults on retail banking product governance: EBA is consulting on a set of guidelines for manufacturers and distributors of retail banking products. The guidelines focus on product governance and oversight arrangements that ensure consumers' interests, objectives and characteristics are taken into account in product design and sale. The consultation also attaches examples of good practice. EBA asks for comments by 10 February 2015 and aims for supervisory authorities to implement the guidelines by 1 April 2016. (Source: EBA Consults on Retail Banking Product Governance)

EBA consults on valuations backing resolution action: EBA is consulting on draft RTS regarding the independent valuations the Bank Recovery and Resolution Directive (BRRD) requires in the context of bank resolution:

  • to assess whether the conditions for resolution or bail-in have been met;
  • to inform the choice and intensity of resolution action. This valuation should ensure losses are fully recognised, even if this requires departures from accounting and prudential rules; and 
  • to ensure respect for the no-creditor-worse-off principle. In this case, valuation should be conducted on a gone-concern basis. 

EBA asks for comments by 6 February 2015. (Source: Draft RTS on Valuation under BRRD

EBA consults on conversion rates of debt to equity: EBA is consulting on guidelines on how and when to set different conversion rates when converting debt to equity in bail-in situations. The draft guidelines cover the purpose of the rates, and the ultimate aim of ensuring the arrangements meet the BRRD principle of creditor hierarchy. EBA has also published a related paper on guidelines on treatment of shareholders when applying the bail-in tool or the write-down or conversion of capital instruments. EBA asks for comment on both papers by 6 February 2015. (Source: EBA Consults on Conversion Rates of Debt to Equity and EBA Consults on Shareholder Treatment in Bail-In)

EBA consults on IRB approach methodology: EBA its consulting on draft RTS on an assessment methodology for the internal ratings based (IRB) approach. The standards should help regulators assess whether a bank complies with the minimum IRB requirements on initial application and on specific other events. It asks for comment by 12 March 2015. (Source: EBA Consults on IRB Approach Methodology)