European Banking Authority Proposals for Powers to Adopt Implementing Decisions

The European Banking Authority published an Opinion on improving the decision-making framework for supervisory reporting requirements under the Capital Requirements Regulation. The CRR imposes an obligation on the EBA to prepare Implementing Technical Standards on supervisory reporting requirements. Once the final draft ITS is sent to the European Commission, there are timeframes (usually three months, extendable by one month) built into the relevant EU legislation for the Commission to endorse the ITS. However, there has often been a gap between the EBA providing the final draft ITS and the Commission’s final endorsement. The ITS on supervisory reporting requirements needs to be updated regularly and corrections and clarifications are needed too. The delayed finalisation of changes made to the ITS have caused problems for financial institutions, national regulators and the EBA.

The EBA is proposing that the EU legislation which grants it powers to prepare the draft ITS should be amended to give it powers to adopt its own implementing technical decisions, instead of the changes being made through an amending ITS - thus reducing the involvement of the Commission in the process. The proposals include a framework of accountability for the EBA. In addition, the EBA considers that the same powers would be useful for all cases of regular supervisory reporting that are currently covered by ITS on reporting and should extend to, inter alia, the benchmarking ITS under the Capital Requirements Directive, remuneration data and reporting requirements under the Bank Recovery and Resolution Directive.
 
View the Opinion.