Macroprudential

According to the Capital Requirements Regulation (CRR), the EBA is required to provide opinions on different topics to the Council of the EU, the European Commission and sometimes to Member States. In particular, according to the second subparagraph of Article 458(4) of the CRR, within one month from receiving a notification from a designated or competent authority entrusted with the national  application of Article 458 of the CRR, the EBA is required to provide its opinion on the points referred to in Article 458(2) of the CRR to the Council, the European Commission and the Member State concerned. But there are also other EBA opinions on macroprudential topics. For instance, when consulted by the European Commission, the EBA can respond to such calls for advice by issuing opinions in the context of Article 8(1)(a) of the its Founding Regulation.

List of EBA Opinions on measures in accordance with Article 458

(a) an analysis of market developments that could potentially increase macro- or micro-prudential risks in all or most Member States and which could potentially warrant the use of the Commission’s power to adopt Delegated Acts in accordance with Article 459 of the Capital Requirements Regulation (CRR);

(b) an analysis whether the Capital Requirements Directive (CRD) and the CRR have a significant effect on the economic cycle, focusing in particular on the use of internal models, as stated in Article 502 of the CRR.

Furthermore, the EBA has the mandate to develop Regulatory Technical Standards in the field of macroprudential instruments. For instance, articles 124 and 164 of the CRR give to the EBA the mandate to develop draft RTS to specify the types of factors to be considered for the assessment of the appropriateness of the risk weights as well as the conditions that the authority designated by the Member State shall take into account when assessing the appropriateness of minimum loss given default (LGD) values.