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CEBS draft guidelines on joint assessment and joint decision regarding the capital adequacy of cross border groups

mercredi 07 avril 2010 CEBS
According to Article 129 (3) of the revised Capital Requirements Directive (CRD)1- which will come into force on 31 December 2010 - consolidating and host supervisors of an EEA cross border banking group shall do everything within their power to reach a joint decision on the application of the Pillar 2 provisions related to the Internal Capital Adequacy Assessment Process (ICAAP) and to the Supervisory Review and Evaluation Process (SREP). The joint decision should cover the adequacy of the consolidated level of own funds held by the group with respect to its financial situation and risk profile, as well as the required level of own funds above the regulatory minimum applied to each entity within the group. The revised CRD also requires CEBS to elaborate guidelines to help facilitate the implementation of these provisions and the convergence of supervisory practices with regard to the joint decision process.
The Guidelines published today provide tools to facilitate a common understanding within colleges of the results of assessments of material risks and control factors, the ICAAP processes and methodologies, as well as compliance with various minimum requirements of the CRD performed by national supervisors with reference to CEBS's existing guidance on the Supervisory Review Process (SRP).

CEBS expects its members to implement these Guidelines in conjunction with the implementation of the revised CRD which will come into force on 31 December 2010.

The consultation is open to all interested parties, including supervised institutions and other market participants.

The public consultation starts today and will run until 9 July 2010. Comments received will be published on CEBS's website unless respondents request otherwise. Please send your comments to the following email address: cp39@c-ebs.org.

A public hearing will be held on 3 June 2010 at CEBS's premises in London from 11:00 to 15:00 to allow all interested parties to share their views with CEBS.

Read more on CEBS website