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Fintech 08 Nov 2018

Fintech and data among the EBA’s priorities for 2019

The European Banking Authority (EBA) has just released its work programme for next year. Understanding the risks and opportunities arising from financial innovation and a better handling of data are some of the priorities the institution has outlined for 2019.

As every year as the end of the year draws nearer, the EBA has just released its work programme for the coming year. In 2019, the EBA will focus on (i) leading the Basel III implementation in the EU; (ii) Understanding risks and opportunities arising from financial innovation 10 (iii) Collecting, disseminating and analyzing banking data; (iv) Ensuring a smooth relocation of the EBA to Paris; and (v) Fostering the increase of the loss‐absorbing capacity of the EU banking system.

Leading the Basel III implementation

Within the EBA’s tasks related to the new regulatory frameworks, the institution’s action plan establishes Basel III implementation as a priority. Other key areas of focus include the development of a single rulebook for the supervision and resolution of institutions, and, increasingly, the oversight function.

Understanding risks and opportunities arising from financial innovation

The EBA acknowledges that “Financial innovation offers great opportunities but also introduces new risks and challenges, having the potential to transform the financial system.” Innovation in products and sustainable finance will be some of the key tasks that the EBA will tackle next year, in line with its Fintech Roadmap, approved on February 2018.

In 2019, the EBA will work to authorize and regulate the creation of regulatory sandbox regimes, cybersecurity, consumer protection, the impact of Fintech on the resolution of credit institutions and the impact of fintech on anti-money laundering activity.

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As every year as the end of the year draws nearer, the EBA has just released its work programme for the coming year.

Collecting, disseminating and analyzing banking data

Another EBA priority for 2019 is becoming a EU‐wide data hub for official bodies as well as for the public. The EBA considers that the expanded access to supervisory data should allow further improved risk analysis and facilitate enhanced dissemination and disclosure of bank data.

With a better analysis of the data, also, the EBA considers that it should be in a better position to develop data-based policies and lead the regulatory and supervision debate in the EU, as well as to expand its publications portfolio.

Ensuring a smooth relocation of the EBA to Paris

In 2019 the EBA will relocate from London to Paris, one of the consequences of the United Kingdom’s decision to leave the European Union. In the words of the EBA itself, the relocation is a “significant challenge.” The goal in this sense is to implement a smooth relocation to Paris and reduce the level of disruption for staff and stakeholders to a minimum.

Fostering the increase of the loss‐absorbing capacity of the EU banking

During the shift from bail‐out to bail‐in – i.e. from a model where troubled financial institutions are bailed out using public funds to one where institutions rescue themselves – it is of paramount importance to support credit institutions in their efforts to progressively build up their loss‐absorbing and recapitalization capacity.

To face this challenge, the EBA’s goal is to ensure that MREL decisions taken by

On top of these five priorities, specific for 2019, the EBA also has defined a set of cross-cutting priorities, such as promoting the implementation of the proportionality principle, contribute to the implementation of the Single Rule Book (or European Banking code), improve consumer protection and prepare the banking sector for Brexit.

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