Page 10 - EBA 2015.1815 Annual report 2014 web 2

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E U R O P E A N B A N K I N G A U T H O R I T Y
8
Foreword by the
Chairperson
2014 marked an important milestone for the European Banking Author-
ity (EBA). After four years of intense work, I believe we are now reaping
the fruits of our efforts to shape a new and stronger regulatory and su-
pervisory framework for European Union (EU) banks. The Single Rule-
book has become a reality in banking, with the EBA’s standards being
applied for the first time throughout the EU. The EU-wide asset quality
review and stress test represented a significant step forward in the re-
pair of banks’ balance sheets, paving the way to a successful start of
the Banking Union. Also, our work on convergence of supervisory prac-
tices and consumer protection took a new impetus, setting the stage for
an important shift in the focus of the EBA’s work in the years to come.
Let me start with the progress in the development of the Single Rule-
book. The G20 reforms were a catalyst for coordinated global regulatory
responses and were essential in establishing the core elements of the
new global financial regulatory framework. But in the EU it was es-
sential to implement the new international standards through a set of
truly homogeneous rules that are legally binding across the 28 Member
States of the Union. This was a key objective assigned to the EBA. It
became even more urgent with the Banking Union, as both the Single
Supervisory Mechanism (SSM) at the European Central Bank (ECB) and
the Single Resolution Mechanism (SRM) could not work properly if the
rules they had to apply in their own jurisdictions were to vary according
to the implementation choices made in each Member State. Moreover,
the Single Rulebook took up a new meaning by underpinning the inte-
gration of the Single Market for all the 28 Member States of the Union,
and becoming a necessary bridge between countries participating in the
Banking Union and others that for the time being have decided not to join.
The construction of the Single Rulebook is at a very advanced stage:
by the end of 2014 we had issued 93 technical standards: in concrete
terms, this means that EU banks of all types and sizes are now fac-
ing truly uniform definitions of key supervisory aggregates, for instance
a common definition of non-performing loans and forbearance, com-
mon definitions of capital and of high quality liquid assets and a single
framework for supervisory reporting – to mention but a few. In addition,
40 more standards (to be finalised by end 2015) are in the pipeline, and
so some further work will still be needed in 2016. But by the end of that
year, the whole reform package should be in place and we will have a
stable and strong regulatory framework, giving certainty to the bank-
ing industry and supervisors alike after an intense period of regula-
tory changes.
Andrea Enria