European Banking Authority

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European Banking Authority
Agency overview
Formed 1 January 2011 (2011-01-01)
Preceding Agency Committee of European Banking Supervisors (CEBS)
Jurisdiction European Union
Headquarters Tower 42 (level 18), 25 Old Broad Street, London EC2N 1HQ, United Kingdom
Agency executives Andrea Enria, Chairperson
Adam Farkas, Executive Director
Key document Regulation (EU) No 1093/2010
Website www.eba.europa.eu

The European Banking Authority (EBA) is a regulatory agency of the European Union headquartered in London, United Kingdom. Its activities include conducting stress tests on European banks to increase transparency in the European financial system and identifying weaknesses in banks' capital structures.[1] 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 (CEBS).

Overview[edit]

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 EU. 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 banks based in jurisdictions with more regulations as all banks will henceforth have to comply with the higher pan European standard.

Common Reporting Framework[edit]

Common Reporting (COREP) is the standardized reporting framework issued by the 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 from 1 January 2014 onwards.[2]

See also[edit]

Notes[edit]

  1. ^ "New European Banking Regulator Will Conduct a Stress Test on Lenders". New York Times. 2011-01-13. Retrieved 2011-02-01. 
  2. ^ "Common Reporting Framework (COREP)". Moody's Analytics. 2011-07-01. 

External links[edit]