EBA standards for capital and reports coming soon

Date 26 April 2012

All banks and regulators throughout Europe will soon have to take account of the new EBA standards for capital and reports.

Europese vlag

Banks are increasingly being confronted with binding technical standards issued by the European Banking Authority (EBA). Once they have been endorsed by the European Commission, all these standards will take effect in the form of decrees governing all European banks and financial regulators. They will not need to be transposed into national legislation, and national departures from the European standard will no longer apply. This will improve the quality and harmonisation of the supervisory regulations, guidelines and practices within Europe. And that is precisely what EBA stands for.

Supervisory reports 

EBA is currently also working to develop a technical standard for supervisory reports. The aim is to enable banks throughout Europe to use a single reporting system in the near future. This means there will no longer have to be a separate reporting set for each national regulator. The introduction of the new reporting system will coincide with the introduction of the Capital Requirements Regulation (CRR).

Consultation on standards for capital

At the same time, EBA is also working on binding technical standards for capital. These standards are in addition to the new capital requirements set down in the CRR.
A package of 14 standards relating to a wide range of capital – from the highest quality of capital instruments (Common Equity Tier 1) to lower quality instruments (Tier 2) – has also been developed. Consultations about this package will run until 4 July and EBA plans to submit the final set of standards to the European Commission for approval on 1 January 2013. The new standards will apply as soon as the CRR formally takes effect.

EBA is also working to develop technical standards and guidelines for SREP/Spearhead 2, Boards, EEA passports for branch offices and liquidity reports for the LCR and NSFR.

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