Page 90 - EBA 2015.1815 Annual report 2014 web 2

Basic HTML Version

E U R O P E A N B A N K I N G A U T H O R I T Y
88
The outcome of this analysis will serve as
the basis for future development of guide-
lines in order to improve supervisory prac-
tices in this field.
As regards to transparency, the EBA will re-
sume its assessment of Pillar 3 disclosures by
banks, continue the disclosure of the risk pa-
rameters at the country level and assess the
opportunity to run an ad hoc disclosure exer-
cise (transparency exercise).
Regulatory calibration on
leverage ratio and stable
funding requirements
Calibration report on LR
Article 511 of the CRR mandates the EBA to
report to the Commission by 31 October 2016
on a number of aspects related to the lever-
age ratio. One core question for the EBA is
whether the leverage ratio should migrate to
Pillar 1 and, if so, what the minimum level(s)
should be especially taking into account busi-
ness models and risk profiles. A considerable
number of other aspects, such as interaction
with the RWA based ratios and liquidity re-
quirements as well as the impact on various
segments of financial markets, shall also be
analysed (see Article 511(3) and (4) CRR). On
this basis, by 31 December 2016, the Commis-
sion will report to the Parliament and Council
on the impact and effectiveness of the lever-
age ratio, together with a potential legislative
proposal on the introduction of one or more
levels of the leverage ratio (see Article 511(1)
and (2) CRR).
Report on net stable funding requirements
Article 510 of the CRR mandates the EBA to
report to the Commission by 31 December
2015 on the appropriateness of stable funding
requirements for European institutions. This
report is required to encompass both a meth-
odology for determining the amount of stable
funding available to and required by institu-
tions for the calculation of such a net stable
funding requirement and an assessment of
its impact on the business and risk profile of
European institutions, financial markets, the
economy and bank lending, with a particular
focus on lending to SMEs, trade financing and
pass through financing models.
Areas subject to
regulatory monitoring
Monitoring of own funds instruments
The EBA will continue to issue updates to the
initial CET1 list on a regular basis with new
types of CET1 instruments being assessed
against the criteria laid down on the CRR.
In particular, the provisions on multiple divi-
dends and preferential distributions laid down
in the EBA final draft RTS on Own Funds (part
IV) will be taken when they enter into force.
The objective of the EBA will be to promote
harmonisation as well as preventing a dete-
rioration of the quality of those instruments.
In 2015, the EBA will continue to exchange
views with institutions and market partici-
pants on the results of this monitoring.
Collecting new data for the remuneration
benchmarking report
The EBA will continue to collect data on staff
that have received remuneration of one million
euros or more in the previous financial year
and to benchmarking remuneration practices
and trends. The EBA will collect the data for
2014 in June 2015 and issue a benchmarking
report before the end of the year. The report
will analyse changes in the figures that result
from the introduction of additional remunera-
tion requirements and specific attention will
be given to changes related to the limitation
of the variable remuneration to 100 % of the
fixed remuneration (200 % with shareholders’
approval).
As part of its tasks to monitor and assess the
developments in the area of remuneration, the
EBA will also follow up on the actions taken
by competent authorities regarding role based
allowances. This will be in line with the find-
ings of the EBA Opinion on the application of
CRD IV regarding the principles on remunera-