The European Banking Authority (EBA) has announced its 2017 annual work programme. The programme addresses the specific activities for the coming year and also highlights the areas of focus for the following 3-year period up to 2020.
Within the forthcoming year, the EBA shall focus on:
- liquidity and leverage ratio, by delivering two technical standards to amend the Commission's implementing technical standards on supervisory reporting in relation to liquidity coverage ratio;
- credit risk and credit risk modelling;
- early intervention and recovery planning, by delivering the regulating technical standards and guidelines on related areas which substantiate the Banking Recovery and Resolution Directive (BRRD);
- promoting convergence, particularly in supervisory approaches and thus aiding comparability, consistency and transperency, which are all essential for the best functioning of the Single Market; and
- an improvement of the framework for the protection of consumers.
The above areas are part of the fulfilment of the EBA's 3-year multi-annual work programme. The EBA highlights that its main aims for the 2017-2020 period are to:
- play a central role in the regulation and policy framework with the development and maintenance of the Single Rulebook;
- promote efficient and coordinated crisis management of credit institutions, investment firms and financial market infrastructures in the EU;
- promote the convergence of supervisory methodologies and practices to a high standard so as to ensure that regulatory and supervisory rules for going concern and crisis situations are implemented consistently across the EU;
- identify and analyse trends, potential risks and vulnerabilities stemming from the microprudential level across borders and sectors;
- maintain and develop the common supervisory reporting framework, as well as to strengthen its role as the EU data hub for the collection, use and dissemination of data on EU banks;
- protect consumers, monitor financial innovation and contribute to efficient, secure and easy retail payments in the EU;
- be a competent, responsible and professional organisation, with effective corporate governance and efficient processes.
In addition, the number of legislative reforms by the Commission in 2017 may effect the EBA which may opt for a reprioritisation of the EBA's strategic areas. In this regard, the EBA shall increase its ability to collect supervisory data in order to have a better analysis of the impact of the revised legislation while increasing transparency in its work.
From a local point of view, this means that the local competent authority may necessitate changes to the information it collects in relation to institutions and this might alter the licencing process and other applicable rules related to financial institutions with the view of being in line with a common European supervisory framework. On this note however, we consider the local framework to be at the forefront of adherence to current EU legislation and therefore we expect changes to be minimal, predictable and gradual.