EBA announces achievements in EU Supervisory convergence
Supervisory practices across the EU are increasingly in alignment, according to a recent European Banking Authority (EBA) report.
The EBA has been monitoring and reporting on supervisory convergence in the EU as part of a push to actively foster further supervisory convergence across the Union. This year’s report found that key targets from the EBA 2019 convergence plan have been largely implemented in supervisory work throughout the EU, leading to improvements in supervisory convergence.
In today’s international business environment supervisory convergence is essential to effectively monitor financial conditions and risks. Aligned requirements for data collection and monitoring enable useful and more comprehensive comparisons and analytics, and convergence is an essential basis for strong supervisory standards.
This year’s report found that key topics for supervisory attention – internal governance, ICT risk and operational resilience, non-performing exposures, and benchmarking of internal models – have been largely implemented across the EU.
Next steps identified by EBA’s report include a need to focus on aligning supervisory attention on ICT risk and operational resilience, loan origination standards, profitability, capital and liability management and money laundering and terrorism financing (ML/TF) risk. [Ed – And presumably operational risk, data security and the management of what some consultants are now calling “exogenous risks”, but we would prefer to call Covid-19.]
Read more here.