The EBA Publishes An Update Of Its Equivalence Monitoring Activities

The European Banking Authority (EBA) has updated its confidential Report on equivalence monitoring activities and submitted it to European Parliament, the Council, the European Commission and the other European Supervisory Authorities (ESAs). To enhance transparency, the EBA also published a public summary outlining recent regulatory and supervisory developments in 26 non-EU jurisdictions deemed equivalent under the Capital Requirements Regulation (CRR).

The Report provides factual information on regulatory and supervisory changes, identifies areas that may require continued monitoring, and ensures that the criteria for equivalence decisions continue to be met.

The public summary offers insight into the EBA’s monitoring approach, while respecting the confidentiality of the detailed Report. The summary provides information on the methodology, scope, parameters, and inherent limitations of the equivalence assessments. It emphasises that the nature and extent of any subsequent follow-up actions will be contingent upon the number and significance of the material findings identified for each jurisdiction.

Legal basis

Article 33(3)) of the EBA’s founding Regulation mandates the Authority to monitor regulatory, supervisory, and enforcement developments in jurisdictions benefiting from European Commission equivalence decisions under the CRR. This ongoing review ensures that the conditions underpinning those decisions remain fulfilled over time.