The European Banking Authority in its Opinion of the 7th March, assesses that there are systemic and significant delays in the adoption of ITS by the Commission and proposes ways to improve the decision-making framework for adopting EU’s supervisory reporting requirements based on Regulation 575/2013 (CRR).
According to EBA, these delays create difficulties for the competent authorities and financial institutions:
-they disrupt effective planning and preparing for the implementation of ITS;
-they lead to mismatches between the reporting requirements and the underlying obligations to which they relate;
-the technical nature of supervisory reporting results in the need for regular updates which results in non-harmonised solutions, creating unnecessary burdens and poor-quality data.
According to EBA this can be avoided if it adopts supervisory reporting requirements directly through its own implementing technical decisions.
In this regard, does the Commission:
-assess the same delays and consequences for the operators?
-envisage that shifting the powers to the EBA is the only way to improve the efficiency of the decision-making process or are there alternative solutions?
-believe that such delegation of powers would need stronger constraints than the ones set out in the EBA opinion, to ensure the respect of the mandates in Level 1 legislation, of the proportionality principle, and of accountability of policy makers?