European Banking Authority Publishes Strategic Focus Areas for 2020
09/27/2019The European Banking Authority has published its 2020 Work Programme. The Programme details six strategic areas of focus for 2020 and these are:
- Support the development of the risk reduction package and the implementation of the global standards in the EU. The EBA will work on developing level 2 legislation required by the revised Capital Requirements Regulation and Directive, the revised Bank Recovery & Resolution Directive and the new Covered Bonds Directive and Investment Firm Regulation and related Directive (the latter two have not yet entered into force). The EBA will continue to work on the implementation of the market risk requirements, following the finalization of the Basel Committee on Banking Standard's fundamental review of the trading book (FRTB). In particular, in 2020, the EBA anticipates implementing the reporting requirement and certain aspects of the FRTB revisions for the internal model approach and for the treatment of non-trading book positions subject to FX or commodity risk. Another priority will be finalization of the EBA's roadmap for the internal ratings-based approach for calculating minimum capital requirements for credit risk.
- Providing efficient methodologies and tools for supervisory convergence and stress testing. The EBA intends to consult on Pillar 2 changes during 2020 and will conduct the 2020 stress test for EU banks.
- Developing an integrated EU data hub and a streamlined reporting framework.
- Prioritizing anti-money laundering. From January 1, 2020, the EBA will have new AML responsibilities and this will be reflected in the EBA's work to continue to make AML a priority for the EU.
- Contributing to the sound development of financial innovation and sustainability. On sustainable finance, as part of the implementation of CRD5 and the IFD, the EBA will be publishing a discussion paper on the incorporation of environmental, social and governance (ESG) factors into risk management and supervision and work on the classification and prudential treatment of assets. In addition, the EBA will be preparing, together with the other European Supervisory Authorities, technical standards on disclosures. On FinTech, the EBA will continue its thematic work and help to facilitate scalability across the EU.
- Promoting an operational framework for resolution. The EBA will work on the implementation of the revised BRRD, focusing on the revised minimum requirements for own funds and eligible liabilities (MREL) and the bail-in regime.
View the EBA's 2020 Work Programme.
View details of CRD5 and CRR II.
View details of BRRD II.
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