On March 1, 2016, the European Banking Authority published its report on the functioning of supervisory colleges in 2015. The report sets out the EBA’s annual assessment of how well the supervisory colleges have met the action plan for 2015. The EU supervisory colleges make joint decisions on capital, liquidity and recovery plans for EU cross-border banking groups. The EBA considers that, generally, there were significant improvements, particularly when it came to the reorganization of supervisory colleges following the introduction of the Single Supervisory Mechanism in 2014, the frequency of interaction and the quality of supervisory colleges. However, the EBA notes that some areas still require work, such as the joint decision processes, quality of joint decision documents and requests for individual recovery plans outside the joint decision process. The report also includes the EBA’s action plan for supervisory colleges in 2016. The plan sets out the focus areas for supervisory colleges which are: on-going balance sheet cleaning, reduction of non-performing loans for legacy portfolios, the sustainability of banks’ business models, conduct risk and IT risk.
The EBA’s Report is available at: http://www.eba.europa.eu/documents/10180/1390624/Report+on+the+functioning+of+supervisory+colleges+in+2015.pdf.