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EBA sets priorities for its 2023 examination program for resolution authorities and prudential supervisors

On 27 October 2022, the European Banking Authority (EBA) published its 2023 European Resolution Examination Program (EREP) and European Supervisory Examination Program (ESEP).

In contrast to EREP, which aims to proactively drive convergence in resolution practices, ESEP aims to drive supervisory convergence in regard to the supervisory review and evaluation process (SREP) across the EU.

2023 European Resolution Examination Program (EREP) for Resolution Authorities

Using its expertise in EU-wide policy development, its role in colleges, and the practical experience of resolution authorities, EBA proactively promotes convergence in resolution practices. Consequently, EBA's EREP seeks to shape resolution authorities' work priorities and practices.

In the evaluation of their 2023 priorities, resolution authorities need to consider the following key aspects:

  • Addressing the MREL shortfalls;
  • Developing management information systems for valuation in resolution;
  • Preparations for managing liquidity needs in case of resolution;Bail-in strategy operationalization.

EBA will monitor how these key topics are incorporated into the 2023 priorities of resolution authorities and how these are reflected in their activities during the year. EREP identifies topics also relevant to EU resolution colleges. In the context of cross-border banking groups, engagement between home college and host college members will even further enhance convergence.

2023 European Supervisory Examination Program (ESEP) For Prudential Supervisors

In an annual cycle, EBA's ESEP contributes to enhanced supervisory convergence across EU members by providing supervisors with common directions and focus areas that help them align their prudential supervisory priorities and practices.

Based on the EBA's EU-wide risk analysis, relevant policy work, and the practical experience of Competent Authorities, the main topics for supervisory attention for 2023 include:

  • Risks associated with macroeconomics and geopolitics;
  • Resilience in both operational and financial areas;
  • Risks associated with the transition towards sustainability and digitalization;
  • Risks related to money laundering and terrorist financing in the supervisory review and evaluation process and internal controls and governance.

As part of its supervisory activities throughout 2023, EBA will monitor the integration efforts of the ESEP's key topics into competent authorities' priorities for 2023. The topics covered by ESEP are also relevant for supervisory colleges since cross-border banking groups require convergent practices and methodologies.

For inquiries please contact:

RBI Regulatory Advisory

Raiffeisen Bank International AG | Member of RBI Group | Am Stadtpark 9, 1030 Vienna, Austria  | Tel: +43 1 71707 - 5923