EBA欧洲银行-EBA-BSG-2017-012-Minutes-of-meeting-held-on-22-February-2017_11页_247kb

Summary of EBA Banking Stakeholder Group (BSG) Meeting – 22 February 2017

Core Content

The EBA Banking Stakeholder Group (BSG) meeting on 22 February 2017 was held in London and covered a range of topics related to regulatory developments, consumer protection, financial innovation, and the implications of Brexit. The agenda was approved, and the meeting focused on the ongoing work of the EBA and its working groups, as well as the challenges and opportunities facing the European banking sector.

Main Topics and Key Points

1. BSG Update on Latest Developments

• Joint Consultation Paper on Management Body Suitability: The BSG Chairperson proposed that the BSG and ESMA collaborate on a common letter regarding the Joint Consultation Paper on the suitability of management bodies.
• Consultation Papers Allocation: Several consultation papers were assigned to specific working groups:
  • Guidelines on supervision of significant branches under the WG on Capital, Liquidity and Risks.
  • RTS on CCP for financial crime under the WG on Supervision, Governance, Reporting and Disclosure.
  • Guidelines on complaints of alleged PSD2 infringements under the WG on Payments, Digital and Fintech.
  • Regulatory Sandbox: An ad-hoc working group was set up to explore this initiative.

2. EBA Update on General Developments

• Future of ESAs: The EBA Chairperson mentioned that the European Commission was considering a consultation on the future of the European Supervisory Authorities (ESAs), and the BSG was invited to submit its views.
• BRRD and Bail-in Tool: The BSG discussed the interplay between State Aid and BRRD rules in recapitalisations, including the implications for investors and the need for transparency in self-placement practices.
• Dynamic Currency Conversion (DCC): The BSG Vice-Chair described DCC as a service that could lead to high additional fees for consumers and suggested drafting a paper by the end of March.
• Panama Papers: Concerns were raised about the role of supervisors in addressing tax evasion and the difficulty of accessing information on subsidiaries due to data protection rules.

3. Consumer Protection, Financial Innovation, and Payments

• PSD2 Consultation Papers:
  • Complaints Procedures: The BSG was asked to provide feedback on the EBA Guidelines for complaints related to alleged PSD2 infringements, with a deadline of mid-May 2017.
  • Incident Reporting: A consultation paper on incident reporting under PSD2 was introduced, with a deadline for comments set for 7 March 2017.
• Consumer Trends Report: The EBA decided to publish a "light" version of the 2017 Consumer Trends Report in June 2017, with a modified methodology and content. National consumer associations and CAs were to complete questionnaires by early April.
• Consumer Protection Day: The event in Prague on 23 June 2017 was welcomed, though some members questioned the inclusion of consumer representatives in panels and the potential impact on industry representation.

4. Discussion on General Topics

• Floor-Rate Clauses in Mortgages: A BSG member highlighted the issue of floor-rate clauses that prevent borrowers from benefiting from lower market rates. Concerns were raised about transparency and fairness in loan terms.
• Brexit Implications: The meeting addressed the impact of Brexit on the EU financial services network, including increased regulatory complexity, supervision fragmentation, and risks to consumer protection. The EBA emphasized the need for an orderly and transparent exit process and continued regulatory cooperation between the UK and the EU.

5. EBA Update on Other Regulatory Deliverables

• Internal Governance and Remuneration: The EBA presented revised guidelines on the suitability of management body members and KFH, expected to be finalised by mid-2017. The guidelines include ex-ante assessments, stricter independence requirements, and diversity policies.
• Internal Models Review: The EBA reviewed the IRB Approach and CRM framework, with a focus on harmonising risk assessment methodologies and supervisory practices. A backtesting approach was used to compare observed and estimated values, showing conservative estimates for PD and LGD.

Key Information

• NPLs Challenge: The EU faces a significant problem with non-performing loans (NPLs), with a total stock exceeding €1 trillion. A proposed EU Single AMC was discussed, with benefits including addressing market failures, improving transparency, and attracting cheaper funding.
• EBA's Role in Brexit: The EBA aims to ensure the smooth functioning of the supervisory and regulatory framework post-Brexit. A change to the EBA Founding Regulation is required for any relocation, and a speedy decision with a long transition period is preferred.
• Consumer Protection: The EBA is focusing on the enforcement of regulatory products in consumer protection, though concerns were raised about the prioritisation of statistical data collection.
• Regulatory Sandboxes: An ad-hoc working group was established to explore the regulatory sandbox concept, which is seen as a way to support financial innovation.

Conclusion

The BSG Chairperson outlined the dates of the next meetings: 2nd May and 3rd May, with the latter being a joint BSG/BoS meeting. Topics for discussion included the role of home/host supervisors and the impact of Fintech on the banking industry.

Participants

• BSG Chairperson: Santiago Fernández de Lis (BBVA)
• Consumer Representatives:
  • Michael Fryni (Erste Group Bank)
  • Monika Marcinkowska (University of Lodz)
  • Alin Iacob (Association of Romanian Financial Services Users)
  • Christophe Nijdam (Independent)
  • Giovanni Petrella (Catholic University, Milano)
  • Thaer Sabri (European Money Association)
  • Anne Fily (BEUC)
• EBA Staff:
  • Andrea Enria (Chairperson)
  • Adam Farkas (Executive Director)
  • Piers Haben (Director of Oversight)
  • Philippe Allard, Dirk Haubrich, Lars Overby, Antonio Barzachki, Cédric Coraillon-Parquet, Anna Gardella, Christopher Mills, Bernd Rummel, Larisa Tugui