Regular Public Hearing with Danièle Nouy, Chair of the Single Supervisory Mechanism, 9 November 2016

This note was prepared by the Economic Governance Support Unit of DG for Internal Policies of the European Parliament in advance of a regular public hearing on the 9 November 2016 referred to in Regulation 1024/2013 and in line with the Interinstitutional Agreement between the European Parliament and the European Central Bank.

The following issues are addressed in the Briefing:

+ Results of the EBA 2016 EU-wide stress test and their relevance for banks’ capital requirements, including some methodological issues and conduct risk

+ Ongoing revisions of the Basel III framework

+ Abstracts of three external briefing papers - Banks' Internal Rating Models - Time for a Change? The System of Floors as Proposed by the Basel Committee

+ the ECB guidance on non-performing loans

+ EBA’s latest Risk Dashboard.

Authors: M. Magnus, A. Margerit and B. Mesnard

ESO: Background information: Banks' Internal Rating Models - Time for a Change? The System of Floors as Proposed by the Basel Committee http://www.europeansources.info/record/banks-internal-rating-models-time-for-a-change-the-system-of-floors-as-proposed-by-the-basel-committee/

ESO: Background information: Hearing with Mrs Elke König, Chair of the Single Resolution Board - ECON 13 July 2016 http://www.europeansources.info/record/hearing-with-mrs-elke-konig-chair-of-the-single-resolution-board-econ-13-july-2016/

ECB: Banking Supervision: Single Supervisory Mechanism https://www.bankingsupervision.europa.eu/about/thessm/html/index.en.html

---