LONDON, 28 November 2015 – A group of high-level representives representing the European Savings and Retail Banking Group (ESBG) met today with European Banking Authority (EBA) Chair Andrea Enria. ESBG leaders held the meeting with the EBA head to gain insight and discuss priorities and workplan of the London-based EU banking authority.
During the meeting, ESBG highlighted priorities of savings and retail banks including stressing the importance of transparency and better communication on the stress test and AQR in order to avoid sending wrong or premature signals to the media and markets. Members successfully conveyed that it is of utmost importance that the leverage ratio remains a backstop measure and that the European MREL – the minimum requirement for own funds and eligible liabilities – is taken appropriately into account when calibrating the total loss-absorbing capacity, or TLAC. They noted that in reality the TLAC will be used as a benchmark by markets and rating agencies for all financial institutions not just global systemically important banks, or G-SIBs.
Mr Enria expressed, among others, the importance that stakeholders such as ESBG deliver input into the diverse EBA consultations, especially on the Bank Recovery and Resolution Directive (BRRD) and deposit guarantee schemes. He promised that the EBA will continue to engage in a dialogue in order to ensure that proportionality is developed in every standard. He further mentioned that a Resolution Committee has been created in the EBA in order to ensure a smooth cooperation with the European Systemic Risk Board (ESRB) and the single supervisory mechanism (SSM) and to avoid duplication of work while promoting sharing of information. He noted that there is indeed a strong demand for enhanced harmonisation in the regulatory area in the European Union, however he ensured that common standards do not mean “one size fits all” as differences of treatment can be justified based on the business model.