EBA欧洲银行-EBA-BS-2014-395rev1-28Draft-Minutes-BoS-16-17-September201429_16页_474kb

EBA Board of Supervisors – Final Minutes Summary (EBA BS 2014 395rev1)

Core Content

The document summarizes the final minutes of the EBA Board of Supervisors (BoS) meeting held on 16–17 September 2014 in London. It outlines the discussions and decisions on various regulatory and supervisory agenda items, including guidelines on payment commitments, securitisations, sovereign exposures, deferred tax assets, and resolution-related topics. The BoS also addressed the establishment of the Resolution Committee (ResCo) and other procedural matters.

Main Views and Key Information

Agenda Item 2: Approval of Agenda and Minutes

• The meeting was opened and the agenda was adopted.
• Minutes of previous meetings (April 2014, May 2014, June 2014) were approved.
• A reminder was given to BoS members to restrict their comments to the focus of the discussion rather than individual interventions.
• A request was made to circulate minutes more timely.

Agenda Item 3: Draft Consultation Paper on Payment Commitments to DGS

• The draft CP proposed a $30% threshold for payment commitments as a maximum share of contributions to deposit guarantee schemes (DGS).
• Three options were presented to ensure neutral prudential treatment of payment commitments compared to cash contributions.
• The EBA Director of Regulation emphasized that DGSs have the power to accept payment commitments and that this is not a matter of national discretion.
• Concerns were raised about the currency of denomination for collateral and the disposal of low-risk assets by custodians in title transfer arrangements.
• The CP will be published for a three-month public consultation in October 2014, with a follow-up discussion in February 2015.
• An open question on geographic concentration and currency risks will be included.

Agenda Item 4: Draft Discussion Paper on High-Quality Securitisations

• The draft paper proposed two criteria for qualifying securitisations: simplicity and transparency and contained credit risk.
• Covered bonds were discussed, with some BoS members suggesting that synthetic securitisations should be allowed if they meet the criteria.
• A 10% risk weight for senior tranches of qualifying securitisations was considered too low, with suggestions for higher risk weights (e.g., 15%).
• There was disagreement on the 35% risk weight for underlying exposures.
• Criterion 21 regarding loan-by-loan access to data was supported, but ESMA and ECB representatives emphasized the need for harmonization with BCBS-IOSCO proposals.
• The 35% risk weight was slightly increased.
• The draft discussion paper was to be finalized by SCRePol in late September before publication.

Agenda Item 5: Guidance on Permanent Partial Use on Sovereign Exposures

• Two options were considered: reducing PPU for sovereigns to 0% or a phased-in approach, or deferring action until 2018.
• The 2018 timeline was adopted, aligning with the CRR.

Agenda Item 6: Interpretation Issues on Deferred Tax Assets (DTA)

• Article 478(2) CRR allows a 10-year deduction period for DTAs, but there was ambiguity over whether it applies to all DTAs or only those based on temporary differences.
• The Commission suggested that both interpretations were possible, leading to significant differences in capital treatment.
• The Chairperson recommended a conservative approach, allowing the 10-year transition only in cases of significant asset sales.
• A Q&A process was suggested for clarifying interpretations.

Agenda Item 7: Report on the First Monitoring of AT1 Instruments

• A report on the first monitoring of AT1 instruments was presented.
• The report aimed to foster convergence in issuance terms and conditions.
• Standardized terms were supported, with non-standardized triggers and share conversion clauses being areas of concern.
• A discussion table with the industry and SGOF to work on standardization were planned.

Agenda Item 8: Liability Management Exercises for AT1/T2 Instruments

• A proposal was made to allow exchanges of AT1/T2 instruments before five years, if replaced with higher quality instruments.
• The Commission opposed this, suggesting the Q&A be classified as Category 1, while the Chairperson argued that it was prudentially sound.
• The BoS agreed with the proposed answer but would not publish it immediately, to allow further discussion with the Commission.

Agenda Item 9: Election of the Chair of SCConFin

• A secret ballot was held for the election of the Chair of the Standing Committee on Consumer Protection and Financial Innovation (SCConFin).
• Bernard Sheridan from the Central Bank of Ireland was elected.

Agenda Item 10: Timing of Implementation of Internet Payment Security Guidelines

• A draft CP on the timing of implementation of internet payment security guidelines was discussed.
• The proposal was to publish the CP by 20 October 2014.
• The Commission suggested a delay until the adoption of PSD2, but the BoS approved the CP for publication on 20 October 2014.

Agenda Item 11: Establishment of the Resolution Committee (ResCo)

• A draft mandate for establishing ResCo was presented, based on previous BoS conclusions.
• ResCo would be structurally separated from other EBA functions.
• BoS members expressed concerns about the written endorsement of ResCo decisions, suggesting a more interactive process.
• The SSM representative suggested a review clause for ResCo after one year.
• The ECB requested to be an observer on ResCo, which was denied but allowed participation in technical groups.
• A staff reorganization proposal was noted for consideration by the Management Board.

Agenda Item 12: Resolution Colleges and EBA's Oversight Role

• The EBA Director of Oversight outlined the role in overseeing resolution colleges.
• Activities for 2015 included mapping entities, drawing up written arrangements, and setting up secure information channels.
• The EBA would provide guidance, training, and IT tools for resolution colleges.

Agenda Item 13: Draft Final Guidelines on Public Support Measures

• Draft final guidelines on public support measures under BRRD were adopted.
• The guidelines included a timeline, scope, methodology, and macro-economic scenarios.
• The purpose was to assist CAs in conducting tests, reviews, or exercises and determining support measures.

Agenda Item 14: Draft Consultation Paper on Recovery Indicators

• The draft CP introduced mandatory indicators (capital, liquidity, asset quality, business model, governance) and optional market indicators.
• CAs were to agree on these indicators when assessing recovery plans.
• The Commission noted that investment firms should not be exempt from the mandatory indicators.
• The draft CP was endorsed for public consultation.

Agenda Item 15: Draft Consultation Paper on Group Financial Support

• Draft RTS, ITS, and GL on group financial support were presented.
• Key points included coordination between CAs, differentiation between upstream and downstream support, and clarification on resolvability.
• The BoS requested further elaboration on the mandatory and optional indicators and the impact on entities inside and outside the SSM area.
• The draft CPs were endorsed for public consultation, with possible revisions post-consultation.

Agenda Item 16: Simplified Obligations

• Two draft CPs on simplified obligations were presented.
• Mandatory and optional indicators were outlined for assessing whether simplified obligations apply.
• Proxies could be used if FINREP data was unavailable.
• Categorization could be based on size rather than only SREP outcomes.
• The optional indicators list was proposed to be an open list to account for institutional specificities.
• A question on the feasibility of assessing the impact of derivative portfolio liquidation on central counterparties was included.

Agenda Item 17: Resolution Tools

• Four draft CPs on resolution tools were discussed.
• Concerns were raised about the treatment of AT1 instruments in write-down and conversion processes.
• A question on assessing impact of derivative liquidation on central counterparties was included.
• All draft CPs were endorsed for public consultation.