Page 56 - 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
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Figure 12: Quality and depth of discussions at College meetings in 2014
Improvement needed
4%
Satisfactory
23%
Good
73%
Figure 13: Quality of Joint Risk Assessments process and content
Improvement needed
23%
Satisfactory
27%
Good
50%
In addition to the new approach for college
monitoring, the EBA developed its suite of
tools for supervisory colleges. One of such
tools is the quarterly EBA Colleges Newslet-
ter to inform and support colleges on relevant
regulatory developments. Additionally, the mi-
cro risk dashboard is a tool used to provide
information to supervisory colleges on how a
bank is performing in comparison to its peers
on a set of Key Risk Indicators (KRIs) (see Fig-
ure 19-Risk Dashboard).
College highlights in 2014
The published EBA annual Colleges Action
Plan for supervisory colleges provides com-
petent authorities, involved in supervisory
colleges, with a set of expected deliverables
based on the tasks defined in the CRD and
BRRD which aim to improve supervisory con-
vergence. The EBA monitors these tasks by
engaging with colleges in accordance with
their monitoring category.
Overall, the requirements of the EBA Col-
leges Action Plan for 2014 have been fulfilled
to a reasonable extent and improvements
were noted in college functioning compared
to previous years. The EBA follows colleges
from the EU banking sector as a whole and
in particular colleges undergoing specific
changes or restructuring (thematic colleges)
as well as colleges of the largest significant
banks (closely monitored colleges). In 2014
the EBA monitored 17 thematic colleges and
25 closely monitored colleges at the begin-
ning of the year. These 25 closely monitored
colleges held a total of 51 physical meetings
during the course of the year. Following some
restructuring changes, however, the number
of closely monitored colleges fell from 25 to 22
by end-2014. And due to institutional changes
in 2014, only 7 of these 22 colleges had agreed
and finalised the joint decisions by end-2014.
However, the remaining colleges were in the
process of finalisation with no cases of disa-
greement noted. Furthermore, the issuance
of the EBA home host protocol guidance (see
also Box 5 on the 2014 EBA EU wide stress
test) meant that 87 % of colleges shared the
stress test results within the college before
publication ensuring a coordinated approach
at publication.
For the first time, the EBA identified a three
level scoring system (good, satisfactory and
improvement needed) to feedback to colleges
at the end of the year on their performance
and the Colleges Action Plan with identified
and clear benchmarking. Some key compo-
nents of college functioning are summarised
below using the three level scoring system.
College meetings
2014 saw an increase in communication and
cooperation within the college framework
with more physical meetings and regular tel-
ephone conferences, especially due to the ad-
ditional thematic discussions in the context of
the AQR and stress test exercises. In general,
meetings were well structured and focused
on developing a common understanding of
the risk profile of the respective cross-border
banking groups. Overall, the EBA observed
good quality and in-depth discussions in the
majority of colleges.
The active participation of the EBA during col-
lege meetings was welcomed by competent
authorities in particular with regards to the
interpretation of new policy products and their
effect on the functioning of colleges as well as