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THE EBA AT A GLANCE

14

Guidelines and recommendations

Establishing a set of consistent, efficient and effective

supervisory practices across the EU is of fundamental

importance to ensure uniform application of EU law. The

EBA produces regulatory guidelines and recommenda-

tions with the purpose of providing guidance to banking

institutions, investment firms and competent supervi-

sory authorities on the application of EU regulations and

directives. Authorities and financial institutions across

the EU are required to make every effort to comply with

the EBA guidelines and recommendations.

Within 2 months of publishing guidelines and recom-

mendations in all EU official languages on the EBA

website, competent authorities across the EU must in-

form the EBA whether they comply or intend to comply

with the guidelines or recommendations. If a competent

authority does not comply or does not intend to com-

ply, it must inform the EBA of this and state reasons for

non-compliance, as prescribed by the ‘comply or ex-

plain’ principle. If specified in the guidelines or recom-

mendations, banking institutions and investment firms

might also have to report as to whether or not they comply.

Technical standards

The EBA is mandated by EU legislative texts such as the

CRD IV package and the BRRD to produce TSs. TSs are

legal acts which specify particular aspects of an EU leg-

islative text (directive or regulation) and aim at ensur-

ing consistent harmonisation in specific areas. The EBA

drafts TSs adopted in the form of binding regulations

and decisions, which are submitted to the European

Commission for final endorsement. They contribute to the

development of the single rulebook for banks in the EU.

The draft TSs are formally adopted by the European

Commission, usually within a few months, and pub-

lished in the

Official Journal of the European Union

unless they are considered disproportionate or incom-

patible with EU law. The European Parliament and the

Council also have the right to scrutinise certain types

of TSs.

Following their publication in the Official Journal, these

standards become legally binding and apply directly in

all Member States. This means that, on the date of their

entry into force, they become part of the national law of

the Member States.