The importance of supervisory transparency and accountability is stressed by the Basel Committee on Banking Supervision and by the European Banking Legislation: Directive 2013/36/EU and Regulation (EU) No 575/2013.
The main purpose of supervisory disclosure is to provide easy access to information, give a comprehensive overview of supervisory and regulatory framework in Europe and enable a meaningful comparison of the approaches adopted by the competent supervisory authorities in the different Member States.
The European Banking Authority (the “EBA”) therefore developed a supervisory disclosure framework that consists of a standardised set of tables of information. These are published on the individual homepages of the competent authorities of the EU Member States.
The EBA website serves as a centralised electronic repository and allows for quick and easy comparison of the relevant information. The websites of the national competent authorities provide the exhaustive and detailed information required by the EU banking legislation.
It should be noted that the European Central Bank (the “ECB”), as the competent authority for the Single Supervisory Mechanism (the “SSM”) also publishes tables of information on supervisory disclosure. The methodology applied for filling the tables is deemed to reflect how supervision is carried out by the respective competent authorities within the EU, taking into account the setup of the SSM on 4 November 2014. In this regard, since the ECB assumes the responsibility for the supervision of significant banking groups since November 2014, as from the 2015 supervisory disclosure exercise, the ECB publishes information for the Significant Institutions under its supervision.
In this section, the CSSF will publish and give access to information regarding the texts of laws, regulations, administrative rules and general guidance adopted in the field of prudential regulation and supervision in Luxembourg.
The supervisory disclosure requirements cover options and national discretions available in EU banking legislation, as well as general criteria and methodologies used nationally in the Supervisory Review and Evaluation Process (the “SREP”). This section also contains aggregate statistical data on key aspects of the implementation of the prudential framework in Luxembourg.
The content of the pages in this section has been divided into four sections:
Rules and guidance
1. Laws and regulations adopting in each Member State the provisions of Directive 2013/36/EU and Regulation (EU) No 575/2013.
These texts outline the primary supervisory requirements for supervised credit institutions and investment firms.
2. Administrative rules
There is a variety of definitions of administrative rules. For the purpose of disclosure they are understood as instructions to supervised entities to fulfil certain legislative and regulatory requirements.
3. General guidance includes explicit disclosure requirements from Directive 2013/36/EU and explanations deemed necessary to set out how the rules should be applied by institutions.
Additionally, such guidance will cover any other relevant information that competent authorities may wish to release to enhance the understanding of the capital adequacy framework.
Options and national discretions
Directive 2013/36/EU and Regulation (EU) No 575/2013 contain a large number of options and national discretions which may be applied on the basis of national circumstances.
This section includes general criteria and methodologies of the SREP, minimum requirements for institutions' own Internal Capital Adequacy Assessment Process (the “ICAAP”) and policies on supervisory measures.
Aggregate statistical data
This section includes aggregate statistical data on key aspects of the implementation of the prudential framework in each Member State. The disclosure includes national statistical data on the financial sector, credit risk, operational risk, market risk, waivers and on supervisory measures and administrative penalties.
Relevant document - Legal basis