EBA provides further guidance on the use of flexibility and calls for heightened attention to risks

Following up on its previous strategic communications, the European Banking Authority (EBA) provided further clarity on how additional flexibility will guide supervisory approaches in relation to market risk, the Supervisory Review and Evaluation Process (SREP), recovery planning, digital operational resilience and ICT risk and securitisation.

Due to the COVID-19 outbreak, the EBA recognises that firms currently face increased operational challenges in the area of reporting in general. Those operational challenges are expected to present a particular impediment to the implementation of an entirely new market risk and reporting framework. As a consequence, the EBA intends to delay reporting for the first FRTB-SA figures to September 2021. This should allow institutions to focus on their core operations and should provide some operational relief, whilst not undermining the smooth implementation of the FRTB in the EU.

This article provides further insight on digital operation resilience, recovery plans in 2020 and securitisation in the context of payment moratoria.