EBA reports on EU supervisory colleges

The EBA has published its annual report assessing EU supervisory colleges, which are responsible for the effective supervision of EU cross-border banking groups. The report highlights a number of achievements made by colleges in the course of 2016, including a good level and quality of engagement, and identifies areas for improvement in 2017.

The report finds that the group risk assessment reports, one of the key deliverables of colleges, provided a good overview of risk profiles but improvements could be made in the completion and sharing of the decomposition of capital requirements by individual risks. In addition, the report highlights that the joint decision documents on capital and liquidity, which are the ultimate outcomes of colleges work, were well reasoned and contained information on and references to the conclusions of the Supervisory Review and Evaluation Process (SREP), as reflected in the group risk/liquidity risk assessment reports.