EBA finalises own funds RTS:  EBA has published its third series of regulatory technical standards
(RTS) concerning the calculation of own funds requirements under the Capital Requirements Regulation
(CRR). The RTS develop the provisions on the deduction of indirect holdings (via intermediate entities
such as funds) in financial sector entities, the avoidance of credit-sensitive dividend features, and the
calculation of minority interests. (Source: Final Draft RTS on Own Funds (Part 3))
EBA finalises securitisation retention RTS: EBA has published the final RTS developing the
requirements in CRR for investing in securitisations, namely:
  • the requirement on the originator, sponsor or original lender to retain 5% of the material net economic interest in the securitisation, and to disclose certain information to investors; and
  • the due diligence requirements applying to investors in securitisations.
EBA has also finalised standards on the factors national authorities must consider when deciding whether
to impose an additional risk weight to the investor's securitisation position where the retention, due
diligence or disclosure requirements have not been met. Additionally, EBA is also consulting, until 17
March, on guidelines applicable when national authorities assess whether significant credit risk transfer
EBA finalises joint decisions RTS: EBA has published its final draft implementing technical standards (ITS) establishing common procedures and templates for consolidating supervisors and those responsible for subsidiaries to reach joint decisions on own funds and liquidity requirements for the group at consolidated level and for each of the institutions within the group. (Source: EBA ITS on Joint Decisions)
EBA finalises CRD 4 passporting and information exchange standards: EBA has published its final draft RTS on passport notifications under the fourth Capital Requirements Directive (CRD4). The RTS set out the information required in branch passport notifications, services passport notifications and where the operation of a branch undergoes changes or is terminated. It has also published the final draft RTS on the content of information exchange between home and host competent authorities regarding branches and service providers, and related ITS establishing the forms, templates and procedures for exchanging information in going concern and liquidity stress situations. (Source: EBA Finalises CRD4 Passporting RTS)
EBA finalises bonus cap RTS: EBA has published its final draft RTS on the criteria to identify staff with a material impact on an institution's risk profile who will be caught by the limits in CRD4 on variable remuneration. The RTS lay down common qualitative and quantitative criteria but these may not be enough to identify all relevant staff within an institution. Institutions will therefore need to carry out a tailored self-assessment process to identify all relevant staff and comply with CRD4. The RTS allow for the exclusion of staff who, despite surpassing the quantitative and qualitative thresholds, are not involved in activities with a material impact on the institution's risk profile. This exclusion may require supervisory approval or notification to EBA, depending on the level of remuneration of the individual. (Source: EBA Agrees on Definition of Identified Staff for Remuneration Purposes)
EBA finalises market risk standards: EBA has published various final draft technical standards related to market risk, including RTS defining the thresholds that will trigger a supervisory assessment of risks in a bank's trading book. (Source: EBA Publishes Final Draft Technical Standards on Market Risk)
EBA finalises liquidity monitoring metrics standards: EBA has published the draft final ITS on additional monitoring metrics for liquidity. (Source: EBA Finalises Liquidity Monitoring Metrics Standards)
EBA consults on identifying G-SIIs: EBA is consulting on RTS setting out a methodology for scoring banks' systemic significance and imposing higher prudential requirements on those that are identified as being global systemically important institutions (G-SIIs). The first calculation will take place in early 2015, based on the data for 2014, and resulting higher own fund requirements would have to be met from 1 January 2016. Related ITS and guidelines lay down uniform disclosure requirements that will apply to any large institution with an overall exposure of more than €200 billion. EBA asks for responses by 28 February 2014. (Source: Methodology for G-SIIs)
EBA warns consumers on virtual currencies: EBA has issued a warning to consumers on the risks
involved in the acquisition, storage and use of virtual currencies. (Source: Warning to Consumers on
EBA publishes RWAs consistency reports: EBA has published reports on the consistency of risk-weighted assets (RWAs) in SMEs, residential mortgages and market risk portfolios. The results of these and previous reports have been compiled in a further report on comparability of RWAs used in banks' internal models. Related to this, EBA has also reported on its inquiry into whether the use of internal models allowed in the capital requirements framework contributes to pro-cyclicality. (Source: EBA Publishes Reports on Comparability of RWAs and Pro-cyclicality)