Page 89 - EBA 2015.1815 Annual report 2014 web 2

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2 0 1 4 a n n u a l r e p o r t
Key areas of focus for 2015
The EBA has an extensive schedule of work
for 2015 which will further promote and safe-
guard the integrity and stability of the EU
banking sector.
Among the areas of focus are RWAs, regula-
tory calibration on leverage and stable fund-
ing, regulatory monitoring of own funds in-
struments, remuneration and options and
discretions. The EBA will finalise a number
of regulatory products including the Deposit
Guarantee Scheme and establishing resolu-
tion authorities.
Regulatory developments will include a review
of the overall prudential treatment of invest-
ment firms, a report on small and medium-
sized enterprises (SMEs), facilitating an effec-
tive dialogue between competent authorities
supervising credit institutions and auditors
and audit firms. The EBA will issue guidelines
regarding shadow banking and develop draft
RTS concerning consolidation of prudential
In addition, the EBA will focus on enhanc-
ing supervisory convergence, upgrading risk
analysis tools, increasing the transparency of
the EU banking sector and further increase its
efforts on regulatory and supervisory conver-
gence in the area of payments.
Work on RWAs
Promoting consistency of RWAs
The EBA outlined the next steps of its work
as regards the consistency of RWAs in a dis-
cussion paper on the Future of the IRB Ap-
proach (
). It is agreed that besides the pro-
duction of technical standards and guidelines
on key aspects of the IRB models and its ana-
lytical work of divergences in RWAs (under Ar-
ticle 78 of the CRD), the EBA also intends to
promote increased supervisory convergence
and greater transparency.
In addition to data collection and running the
benchmarking itself (
), further work in 2015
will focus on the consistency of supervisory
approaches as regards to internal models.
The EBA will finalise the draft RTS on assess-
ment methodology of the IRB Approach. This
will establish specific requirements for com-
petent authorities on the scope and methods
of verification of all important aspects of the
IRB Approach including the estimation of risk
parameters, internal processes, governance,
internal use of risk parameters and calcula-
tion of own funds requirements. The level of
convergence of supervisory outcomes and
consistency of internal models is expected to
increase significantly.
In addition, the EBA will look at other aspects
of the supervision of internal models such as
the frequency of reviews and measures taken
to address deficiencies as part of the obliga-
tions imposed under Article 78 of Directive
2013/36/EU in its ongoing work in colleges
and other forums to promote consistency in
supervisory approaches.
) Discussion Paper Future of the IRB Ap-
proach, available at
) See the section on ‘Fostering convergence and
restoring confidence in the use of internal models’,