Page 58 - 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
56
within the EU and an operational perspective
on resolution planning with the aim of fa-
cilitating an open and collaborative approach
amongst resolution authorities.
Mediation
Pursuant to the EBA Regulation, it is the task
of the EBA to contribute to the consistent ap-
plication of legally binding Union acts. This
role is achieved by the application of different
powers, one of which is the settlement of disa-
greements between competent authorities. In
line with the EBA Regulation, mediation may
be performed by using the procedure for the
binding settlement of disagreements between
competent authorities or by non-binding me-
diation.
Taking into account the changes introduced
into the EBA Regulation by Regulation (EU)
No 1022/2013, the EBA’s mediation processes
were reviewed and new procedures were de-
veloped to reflect the increased size of the
EBA’s Mediation Panel in order to ensure the
continued effectiveness of the initial concilia-
tion phase of mediation. (
17
) The rules on me-
diation were applied in 2014 in two cases of
non-binding mediation and two cases of bind-
ing settlement of disagreements between
competent authorities, all of which were set-
tled amicably at or before the conciliation
stage. To raise awareness among the National
Competent Authorities (NCAs) on the role and
features of the mediation processes a Media-
tion workshop was organised.
(
17
) Decision of the EBA on adopting the Rules of
Procedure for the non-binding mediation between
competent authorities; see EBA website:
.
Peer reviews
Another tool that the EBA uses to foster con-
sistency in supervisory outcomes is conduct-
ing peer reviews of activities of competent
authorities, in line with Article 30 of the EBA
regulation. The peer review work is carried
out by the EBA’s Review Panel, using a peer
review methodology agreed by the EBA’s BoS
in June 2012. The peer reviews seek to assess
supervisory implementation practices, such
as of EBA’s regulatory products and includ-
ing an assessment of the adequacy of com-
petent authorities’ resources and governance
arrangements, the degree of convergence in
the application of these supervisory practices,
including legal frameworks and guidance; and
seeks to identify best practices developed by
competent authorities.
The results of a peer review can lead to iden-
tification of best practices which might be
of benefit for other competent authorities to
adopt, to issue changes to existing guide-
lines and recommendations, inform technical
standards under development, and/or result
in the EBA providing an opinion to the EU In-
stitutions.
In 2014, all competent authorities underwent
a peer review in relation to their adherence to
specific aspect of the EBA’s peer review on the
credit concentration risk aspects in the EBA
‘Guidelines on the Management of Concentra-
tion Risk under the Supervisory Review Pro-
cess (GL 31)’. (
18
) The peer review consisted of
a self-assessment undertaken by competent
authorities, followed by the review by peers
phase. The EBA further conducted two on-
site visits to competent authorities based on
the outcomes of the desk-based peer review
of GL 31 to supplement its final assessment.
The final report, listing all findings from the
peer review and from the on-site visits, was
published in July 2014. (
19
) The findings from
the peer review suggested that concentration
risk is continuously monitored and assessed
and forms an integral part of the NSAs’ risk
(
18
) Guidelines on the Management of Concentra-
tion Risk under the Supervisory Review Process
(GL 31):
(
19
) Report on the peer review of the EBA Guidelines on
the management of concentration risk under the
supervisory review process (GL 31),