European Banking Authority

European Banking Authority
European Banking Authority
Agency overview
Formed	January 1, 2011
Preceding agency	Committee of European Banking Supervisors (CEBS)
Jurisdiction	European Union
Headquarters	Tower 42 (level 18), 25 Old Broad Street, London EC2N 1HQ, United Kingdom
Agency executives	Andrea Enria, Chairperson; Adam Farkas, Executive Director
Key document	Regulation (EU) No 1093/2010
Website
	www.eba.europa.eu

The European Banking Authority (EBA) is a regulatory agency of the European Union headquartered in London, United Kingdom. Its activities include conducting stress tests on European banks to increase transparency in the European financial system by identifying weaknesses in banks' capital structures.¹ The EBA was established on 1 January 2011, upon which date it inherited all of the tasks and responsibilities of the Committee of European Banking Supervisors (CEBS).

Overview

The EBA has the power to overrule national regulators if they fail to properly regulate their banks. The EBA is able to prevent regulatory arbitrage and should allow banks to compete fairly throughout the E.U. The EBA will prevent a race to the bottom because banks established in jurisdictions with less regulation will no longer be at a competitive advantage compared to ones based in jurisdictions with more regulations since henceforth all banks will have to comply with the higher pan European standard.

Common Reporting Framework (COREP)

Common Reporting (COREP) is the standardized reporting framework issued by the European Banking Authority (EBA) for the Capital Requirements Directive reporting. It covers credit risk, market risk, operational risk, own fund and capital adequacy ratios. This reporting framework has been adopted by almost 30 European countries. Regulated institutions are required to file periodically COREP reports, on both a solo and consolidated basis, using XBRL. All regulated organizations in the UK must use COREP to make their regular statutory reports by 31st December 2012.²