European Banking Authority

European Banking Authority

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The European Banking Authority (EBA) is a regulatory agency of the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

 headquartered in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

. Its activities include conducting stress tests on European banks to increase transparency in the European financial system by identifying weaknesses in banks' capital structures. The EBA was established on 1 January 2011, upon which date it inherited all of the tasks and responsibilities of the Committee of European Banking Supervisors
Committee of European Banking Supervisors
The Committee of European Banking Supervisors was an independent advisory group on banking supervision in the European Union. Established by the European Commission in 2004 by Decision 2004/5/EC, and its charter revised on 23 January 2009, it was composed of senior representatives of bank...

 (CEBS).

Overview


The EBA has the power to overrule national regulators if they fail to properly regulate their banks. The EBA is able to prevent regulatory arbitrage and should allow banks to compete fairly throughout the E.U. The EBA will prevent a race to the bottom because banks established in jurisdictions with less regulation will no longer be at a competitive advantage compared to ones based in jurisdictions with more regulations because all banks will have to comply with the higher pan European standard.

Common Reporting Framework (COREP)


Common Reporting (COREP) is the standardized reporting framework issued by the European Banking Authority (EBA) for the Capital Requirements Directive reporting. It covers credit risk, market risk, operational risk, own fund and capital adequacy ratios. This reporting framework has been adopted by almost 30 European countries. Regulated institutions are required to file periodically COREP reports, on both a solo and consolidated basis, using XBRL. All regulated organizations in the UK must use COREP to make their regular statutory reports by 31st December 2012.

See also

  • European System of Financial Supervisors
    European System of Financial Supervisors
    The European System of Financial Supervisors is an institutional architecture of the EU's framework of financial supervision created in response to the financial crisis...

  • European Systemic Risk Board
    European Systemic Risk Board
    The European Systemic Risk Board was established on 16 December 2010 in response to the ongoing financial crisis. It is tasked with the macro-prudential oversight of the financial system within the Union in order to contribute to the prevention or mitigation of systemic risks to financial...

  • European Securities and Markets Authority
    European Securities and Markets Authority
    The European Securities and Markets Authority is a European Union financial regulatory institution and European Supervisory Authority located in Paris....

  • European Insurance and Occupational Pensions Authority

External links