Page 10 - 2014_3865_EBA 5th

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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
8
1. Introduction
This is the fifth semi-annual report on risks
and vulnerabilities of the European banking
sector conducted by the European Banking
Authority (EBA). This report describes the
main developments and trends that affected
the EU banking sector in the first half of 2014
and provides the EBA’s outlook on the main
micro-prudential risks and vulnerabilities
looking ahead.
The EBA considers that the information con-
tained in the report provides the relevant
stakeholders with a useful benchmark for
analysis(
1
). The report draws on the views of
banks and national supervisors to construct
a forward-looking view of risks that are of
concern to regulators and policy-makers.
Among other sources of information, this
report is based on four main exclusive data
sources, namely:
(a) EBA key risk indicators (KRI);
(b) EBA risk assessment questionnaire for
banks (RAQ);
(c) EBA risk assessment questionnaire for
market analysts (RAQ for market ana-
lysts); and
(d) Micro-prudential expertise and college
information gathering.
(
1
) With this report, the EBA discharges its responsibility
to monitor and assess market developments and provides
in-formation to other EU institutions and the general public,
pursuant to Regulation (EU) No 1093/2010 of the European
Parliament and of the Council of 24 November 2010, and
amended by Regulation (EU) No 1022/2013 of the European
Parliament and of the Council of 22 October 2013.
The EBA key risk indicators (KRI) are a set of
53 indicators collected on a quarterly basis by
national supervisors, from a sample of 57 Eu-
ropean banks in 20 EEA countries from 2009
onwards. The banks in the sample cover at
least 50 % of the total assets of each national
banking sector. Most of the indicators are not
publicly available: therefore, these data pro-
vide a unique and valuable source of informa-
tion. The reference date for the most recent
data is 31 December 2013. Information about
the sample and descriptive statistics of the
latest KRIs can be found in both the appendix
and annex. The weighted average ratios are
described unless stated otherwise. Since KRI
are collected at a point in time, they tend to
be backward-looking in nature. They are thus
complemented with various forward-looking
sources of information and data, such as
semi-annual and ad hoc surveys.
The risk assessment questionnaire (RAQ) is
a semi-annual survey conducted by the EBA,
asking banks and/or their financial supervi-
sors a number of multiple-choice questions.
Information from the questionnaire complet-
ed in April 2014 and comparisons with previ-
ous responses from a representative sample
of 39 European banks (Annex I) is used in this
report. In addition, the EBA conducted a sur-
vey (RAQ for market analysts) asking market
analysts (23 respondents) a number of ques-
tions in a multiple-choice format with re-
sponses reflecting the degree of agreement
with a given statement.