EBA calls for crowdfunding convergence: EBA has published an opinion recommending the legislators clarify how EU law applies to loan-based crowdfunding. It notes areas of risk and gives reasons for a consistent regulatory treatment. It thinks the best place to address its recommendations would be in the revised Payment Services Directive. (Source: EBA Calls for Crowdfunding Convergence)

EBA consults on CSD requirements: EBA is consulting a draft Regulatory Technical Standards (RTS) under the CSDR. The RTS harmonise calculations of capital requirements for CSDs and set out a prudential framework for CSDs that provide banking-type ancillary services. Consultation closes on 27 April and EBA must submit its views to the Commission by 18 June. (Source: EBA Consults on CSD Requirements)

EBA consults on remuneration policies: EBA is consulting on Guidelines on implementing sound remuneration policies, which will be consistent with CRD 4 and will replace its 2010 Guidelines. The Guidelines cover:

  • mapping all remuneration components into either fixed or variable pay; and
  • applying deferral arrangements and the pay-out instruments.

Parts of the Guidelines will apply to all staff and part to specified staff. FCA urged firms to respond to the consultation, which closes on 4 June. (Source: EBA Consults on Remuneration Policies)

EBA updates single rulebook FAQs: EBA has added new questions to its single rulebook FAQs. (Source: EBA Single Rulebook FAQs)

EBA looks at own funds benchmarks: EBA has published a set of Regulatory and Implementing Technical Standards that enable benchmarking of internal approaches for calculating own funds requirements for credit and market risk exposures. It has also published its response to the Commission on the benchmarking process. The first exercise under the data will take into account data referred to Q4 2015 observations and institutions must report the information by 11 April 2016. (Source: EBA Looks at Benchmarks)

EBA publishes Basel monitoring results: EBA has published its latest report on the Basel III monitoring exercise on the European banking system. The key findings show:

  • none of the Group 1 category banks would face a shortfall in Common Equity Tier 1 (CET1) capital to achieve the minimum requirement;
  • the average liquidity coverage ratio (LCR) of these banks would have been 113% as of June 2014, with 82% of the banks sampled already meeting the 100% Basel requirement that takes full effect in 2019;
  • for the Net Stable Funding Ratio (NSFR), the average fully-implemented NSFR would have been 102% for Group 1 banks and 111% for Group 2 banks; and
  • the average fully implemented liquidity ratio (LR) for Group 1 banks, assuming joint compliance with the 6% Tier 1 capital requirement, would be 3.9%.

(Source: EBA Publishes Basel Monitoring Results)

EBA updates on EU stress test: EBA says it will not carry out an EU-wide stress test in 2015. Instead, it will run a transparency exercise on EU banks' balance sheets and portfolios. There will be another stress test in 2016. (Source: EBA Updates on EU Stress Test)