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Overall, the EBA has identified significant improvement in the colleges' deliverables although further efforts are needed, in particular to ensure that the group risk/liquidity risk assessment reports form a real joint assessment of the group-wide risks.
The core of the Report focuses on some key observations regarding the 2018 cycle of supervisory colleges. These observations cover:
On the organisational aspects of the colleges' work and interactions, the Report notices a relatively high level of convergence among the colleges in terms of form and conduct but observes that some areas for improvement remain, for instance regarding the timely distribution of meeting documents. Considering the ever-increasing importance of anti-money laundering and countering the financing of terrorism (AML/CFT), supervisory colleges are invited to discuss this topic on a regular basis.
Regarding the colleges' deliverables (the group risk/liquidity risk assessment reports, as well as the joint decisions on capital, liquidity and recovery plans), the Report highlights that, in general, significant progress has been made. However, in some cases, the group risk/liquidity risk assessment reports still tend to be a compilation of the findings and assessments of the individual competent authorities and the information provided does not always enable readers to easily form a thorough opinion on the various topics. Moreover, despite the improvements achieved in the quality of the joint decisions, the Report notes that, in general, the reasoning for the liquidity joint decisions was less robust than for the capital joint decisions.
Seven key topics for supervisory attention had been identified for 2018, namely:
In general, in 2018, colleges of supervisors reflected these topics in their interactions.
The Report also sets out the colleges' action plan for 2019, which includes: