European Banking Authority Sets Timeline for Provision of Advice to the European Commission on Review of EU Capital Requirements

The European Banking Authority published a letter from it to the European Commission relating to the Calls for Advice on various aspects of the revised international regulatory capital requirements. The Commission has requested advice from the EBA on the revision of the own funds requirements for market risk, counterparty credit risk, exposures to CCPs, large exposures and the net stable funding requirement.

The EBA has begun work on the advice requested. However, the EBA does not think that the deadlines for the advice are feasible. The EBA sets out the dates by which it will be able to provide certain aspects of the advice requested. The EBA considers that it will be able to provide some analysis and information by June 1, 2016 and other points by November 1, 2016. However, the EBA is experiencing difficulties accessing the market risk data of the Basel Committee on Banking Standards and the analysis on firms' exposures to CCPs will be impossible to provide by June 1, 2016 because the EU data does not include sufficiently granular information and the Basel data is no longer considered representative.

The EBA has also been asked to provide an overview of possible errors and inconsistencies in the Capital Requirements Regulation using the Single Rulebook Q&A tool. The EBA states that it will concentrate its efforts on those areas of CRR that would be subject to review by the end of 2016.

View the EBA's letter to the Commission.

View the Commission's request for advice on the NSFR.

View the Commission's request for advice on counterparty credit risk.

View the Commission's request for advice on exposures to CCPs.

View the Commission's request for an overview of errors and inconsistencies.