The EBA Updates Methodology On The Regulatory And Supervisory Equivalence Of Non-EU Countries

The European Banking Authority (EBA) today published its updated methodology for the assessment of regulatory and supervisory frameworks of non-EU countries. The changes reflect the amendments to the revised Capital Requirements Regulation (CRR) and Capital Requirements Directive (CRD).

The methodology used to perform a thorough assessment of the jurisdiction’s regulatory and supervisory framework is based on the following two questionnaires published on the EBA’s website:

• The 1st step questionnaire consists of a preliminary screening to determine whether the main requirements and principles are in place.
• The 2nd step questionnaire is a more in-depth examination, systematically mapping provisions of the EU framework with that of the non-EU country.

Further to aligning the methodology with the latest regulatory developments, the EBA also streamlined its 2nd step questionnaire to improve the overall user experience.

Finally, the content of the questionnaires was moved to an online platform, allowing countries to reply directly via a secured digital format. Upon request, interested non-EU jurisdictions may get a dedicated access to this platform. They may contact the EBA for further information (Equivalence@eba.europa.eu).

Legal Basis and background

Article 33(2) provides that the EBA shall assist the European Commission in preparing equivalence decisions pertaining to regulatory and supervisory regimes in non-EU countries following a specific request for advice from the European Commission or where required to do so by the legislative acts referred to in Article 1(2) of Regulation (EU) 2010/1093.