Front Matter Page
INTERNATIONAL MONETARY FUND
IMF Country Report No. 18/233
EURO AREA POLICIES
FINANCIAL SECTOR ASSESSMENT PROGRAM
DETAILED ASSESSMENT OF OBSERVANCE—BASEL CORE PRINCIPLES FOR EFFECTIVE BANKING SUPERVISION
July 2018
This Detailed Assessment of Observance of Basel Core Principles for Effective Banking Supervision for the euro area was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed in June 2018.
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© 2018 International Monetary Fund
Front Matter Page
EURO AREA POLICIES
FINANCIAL SECTOR ASSESSMENT PROGRAM
June 29, 2018
DETAILED ASSESSMENT OF OBSERVANCE
BASEL CORE PRINCIPLES FOR EFFECTIVE BANKING SUPERVISION
Prepared By
Monetary and Capital Markets Department
This Detailed Assessment Report was prepared by John Laker, Thomas Curry, Pierpaolo Grippa, and Fabiana Melo in the context of an IMF Financial Sector Assessment Program (FSAP) mission in the euro area during November 2017 and March 2018, led by Daniel Hardy, IMF and overseen by the Monetary and Capital Markets Department, IMF. Further information on the FSAP program can be found at http://www.imf.org/external/np/fsap/fssa.aspx
Contents
Glossary
SUMMARY AND MAIN FINDINGS
A. Main Findings
INTRODUCTION AND METHODOLOGY
A. Introduction
INSTITUTIONAL AND MARKET STRUCTURE—OVERVIEW
PRECONDITIONS FOR EFFECTIVE BANKING SUPERVISION
DETAILED ASSESSMENT
A. Supervisory Powers, Responsibilities, and Functions
B. Prudential Regulations and Requirements
SUMMARY COMPLIANCE WITH THE BASEL CORE PRINCIPLES
RECOMMENDED ACTIONS AND AUTHORITIES COMMENTS
A. Recommended Actions
B. Authorities’ Response to the Assessment
BOX
1. The 2012 Revised Core Principles
FIGURE
1. Financial System Overview
Glossary
| AMA |
Advanced Measurement Approaches |
| AML |
Anti-Money Laundering |
| BCBS |
Basel Committee on Banking Supervision |
| BCP |
Basel Core Principles for Effective Banking Supervision |
| BIRD |
Banks’ Integrated Reporting Dictionary |
| BRRD |
Bank Recovery and Resolution Directive - Directive 2014/59/EU of May 15, 2014 |
| CCR |
Counterparty Credit Risk |
| CMT |
Crisis Management Team |
| COI |
Centralized Onsite Inspections division |
| COREP |
Common Reporting (in the EU) |
| CRD |
Capital Requirements Directive - Directive 2013/36/EU |
| CRO |
Chief Risk Officer |
| CRR |
Capital Requirements Regulation - Regulation (EU) No 575/2013 |
| CVA |
Credit Valuation Adjustment |
| DA |
Delegated Regulation ((EU) 2015/61) |
| DG |
Directorate General |
| DGSD |
European Directive on Deposit Insurance |
| EBA |
European Banking Authority |
| ECA |
European Court of Auditors |
| ECB |
European Central Bank |
| EIOPA |
European Insurance and Occupational Pension Authority |
| ESCB |
European System of Central Banks |
| ESMA |
European Securities and Market Authority |
| ESRB |
European Systemic Risk Board |
| EU |
European Union |
| EUR |
euro |
| FICOD |
Financial Conglomerates Directive |
| FINREP |
Financial Reporting (in the EU) |
| FSAP |
Financial Sector Assessment Program |
| G-SIB |
Global Systemically Important Bank |
| G-SII |
Global Systemically Important Institution |
| HoM |
Head of Mission |
| ICAAP |
Internal Capital Adequacy Assessment Process |
| IDRA |
ITS Data Reporting and Analysis |
| IFRS |
International Financial Reporting Standards |
| ILAAP |
Internal Liquidity Adequacy Assessment Process |
| IMAS |
Information Management System |
| IMF |
International Monetary Fund |
| IReF |
Integrated Reporting Framework |
| IRB |
Internal Ratings-Based |
| IRRBB |
Interest Rate Risk in the Banking Book |
| ITS |
Implementing Technical Standard |
| JST |
Joint Supervisory Team |
| LCR |
Liquidity Coverage Ratio |
| LEI |
Legal Entity Identifier |
| LSI |
Less Significant Institution |
| MCM |
Monetary and Capital Markets Department |
| MEL |
Minimum Engagement Level |
| MFHC |
Mixed Financial Holding Company |
| MoU |
Memorandum of Understanding |
| NCA |
National Competent Authority |
| NCB |
National Central Bank |
| NDA |
National Designated Authority |
| nGAAP |
National Generally Accepted Accounting Principles |
| NP |
National Parliaments |
| NPE |
Nonperforming Exposure |
| NPL |
Nonperforming Loan |
| NRA |
National Resolution Authority |
| RAF |
Risk Appetite Framework |
| RAS |
Risk Assessment System |
| RCAP |
Regulatory Consistency Assessment Program |
| RTS |
Regulatory Technical Standard |
| SEP |
Supervisory Examination Programme |
| SI |
Significant Institution |
| SRB |
Single Resolution Board |
| SREP |
Supervisory Review and Evaluation Process |
| SRM |
Single Resolution Mechanism - Regulation (EU) No 806/2014 of July 15, 2014 |
| SSM |
Single Supervisory Mechanism |
| SSMFR |
SSM Framework Regulation - Regulation (EU) No 468/2014 of April 16, 2014 |
| SSMR |
SSM Regulation - Council Regulation (EU) No 1024/2013 of October 15, 2013 |
| STE |
Short-term Exercises data |
| TRIM |
Targeted Review of Internal Models |
| WCCA |
Written Coordination and Cooperation Arrangement |