1. Executive summary
Solvency and Supervision
| Title | Observation and implication | Grade |
| a. Basel III Reforms publication in the Official Journal of the European Union | • The European Union (EU) Banking Package CRR III/CRD IV consists of three parts: (i) implementing the final Basel IV reforms, (ii) contributing to the green transition (sustainability) and (iii) ensuring good management of EU banks and better protecting financial stability, published on 19 June 2024. • Most of the risks affected in solvency are credit risk, CVA, operational risk, market risk and the output floor, as well as ESG-related essentials under Pillar 2. • The application date for CRR III is 1 January 2025. Although some provisions will apply from the effective date 9 July 2024, and transitional provisions will apply until 2032. • The key challenges faced by credit institutions are ensuring regulatory compliance and deadlines in Q1 2025. |
H |
| b. Updated Supervisory Review and Evaluation Process by ECB Supervisory Board | • The European Central Bank’s Supervisory Board decided to update the Supervisory Review and Evaluation Process (SREP), published on 28 May 2024. • The main goals for the new SREP focus on risk assessment, better integrating supervisory activities, using the full supervisory toolkit, enhancing communication, making methodologies more stable and making better use of IT systems and analytics. • The European Central Bank (ECB) took steps to improve the supervisory process through prioritisation with a new Risk Tolerance Framework (RTF), in 2023, and implementing a multi-year assessment for the SREP. • The next step is implementing the changes reflecting the gradual revision of the supervisory news over the two next years. |
H |
| c. Countercyclical Capital Buffer by National Competent Authority | • Capital buffers are requirements in addition to the individual capital requirements. They are designed to curb the growth of systemic risk and bolster institutions’ solvency so that they can absorb any losses should systemic risks arise. • The Countercyclical Capital Buffer (CCyB) is activated during credit cycle upswings, increasing capital requirements to curb the development of systemic imbalances, raise banks’ solvency levels and thus improve their risk-absorbing capacity. • The National Competent Authority (NCA) has informed the European Central Bank and AMCESFI, the Spanish macroprudential authority, of the content of the proposal for a CCB rate of 0.5% on exposures in Spain for Q4 2024, drawn up according to the new framework proposed for setting this buffer rate. |
H |
Recovery and Resolution
| Title | Observation and implication | Grade |
| d. 2024 Single Resolution Board (SRB) Resolution Planning cycle | • The Resolution Plans include the preferred resolution strategy, the Minimum Requirements for Own Funds and Eligible Liabilities (MREL) and the resolvability assessment. • In line with the SRM’s new strategy, Vision 2028, the SRB in 2024 will have a greater focus on testing banks’ resolvability and the operationalisation of the resolution strategies defined in the resolution plans. • The 2024 Single Resolution Board’s Resolution Planning Cycle informs stakeholders about the SRB’s resolution planning activities and describes the main processes and phases of the current Resolution Planning Cycle (RPC). • Start of the preparation of the 2025 RPC: banks will receive the bank-specific 2025 SRB priority letters in 2024. |
M |
| e. Bail-in Part of the Single Resolution Mechanism’s Toolkit | • This document focuses on the bail-in tool and the application of Write-Down and Conversion (WDC) powers in support of any resolution tool, published on 26 June 2024. Bail-in is an essential component of resolution authorities’ toolkits, enabling them to impose losses on owners and creditors of a failing bank and, if required, recapitalise the bank through the conversion of its relevant capital instruments and bail-in-able liabilities into new equity. • As banks are expected to develop bail-in playbooks , they will ensure that such playbooks are properly aligned with the bail-in execution approach developed in the relevant jurisdictions. |
M |
European Banking Authority’s Stress Test
| Title | Observation and implication | Grade |
| f. 2025 European Banking Authority Stress | • The European Banking Authority (EBA) published for informal consultation its draft methodology, templates and guidance for the 2025 EU-wide stress test on 5 July 2024. • The exercise is carried out based on year-end 2024 figures, and the scenarios will be applied over a period of three years from 2025 to 2027. • This step marked the beginning of the dialogue with the banking industry and builds upon the methodology used in the 2023 exercise, with improvements reflecting new insights and regulatory changes. • Some important changes were introduced, notably the integration of the upcoming Capital Requirements Regulation (CRR III), set to be implemented on 1 January 2025. It also considers the Commission’s announcement to postpone the application date of the Fundamental Review of the Trading Book (FRTB). Other enhancements include the centralisation of Net Interest Income (NII) projections and advancements in the market risk methodology to increase risk sensitivity. • The EBA expects to publish the final methodology at the end of 2024, launch the exercise in January 2025 and release the results by the end of July 2025. |
H |
2. Background and rationale
a) Basel III Reforms publication in the Official Journal of the European Union
| Background and rationale | Accuracy comments | |
| European Banking Authority Published Official Journal of European Union 19 June 2024 Not determined |
• The banking package, based on Regulation (EU) No 575/2013 (the Capital Requirements Regulation – CRR) and Directive 2013/36/EU (the Capital Requirements Directive – CRD), which implements the Basel III framework in the EU, includes a full revision of the CRR and CRD with regard to the prudential metrics and encompasses various innovations in the prudential framework for credit institutions. • The standards are set by the Basel Committee on Banking Supervision (BCBS) for internationally active banks. • The key features that are now being implemented are as follows: – Changes apply in the standardised approach to determining RWA, using parameters that are clearly defined and calibrated in the capital rules. – Changes have also been made to the internal ratings-based (IRB) approach (notably the introduction of input floors on the parameters), allowing banks themselves to estimate the parameters used in the calculation of RWAs. – The option to use the IRB approach has been removed for certain types of exposure. – Basel III introduces the output floor, which is a measure that sets a lower limit (floor) on the RWAs (output) calculated by banks using their internal models. It has been agreed that if the output floor is fully implemented, the RWAs computed using internal models cannot fall below 72.5% of the RWAs computed using the standardised approach. – Basel III also introduces a new operational risk framework, which refers to the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. • With the regulations set to be in force from 1 January 2025, and member states given 18 months to transpose the directive into national legislation, banks will need to adjust their frameworks to comply with the new requirements. |
• The modifications introduced by CRR III will result in an increase in capital requirements. However, the size of the impact can differ significantly between credit institutions, as it will depend on the structure of bank portfolios and the methods used to calculate capital requirements. • Therefore, determining the ultimate impact of the new regulations on the position of banks’ capital requires a detailed analysis of their portfolios. When analysing the impact, it is crucial to consider those changes that allow for a decrease in capital requirements. • These opportunities often involve extended data requirements, so it is important to identify new data requirements in advance, start collecting the data, and take care of the integrity, completeness and correctness of the data. • The EBA estimates suggest that the EU implementation will mean a capital increase 3.6 percentage points lower than it would be following a faithful implementation of the Basel Framework. • FINBOX is an Accuracy customisable tool that can be used to develop and challenge the capital budget, budget planning and P&L statement projections and 2025 EBA Stress Test in line with regulations. • As the banking sector prepares for the implementation of CRR III and CRD IV, it also must deal with other regulatory challenges and developments driven by the competent authority and supervisory initiatives. • The cyber risk stress test in 2024 and the top-down climate risk stress test planned by the ECB are both indicative of the proactive measures being taken to ensure the banking sector’s preparedness for future risks. • Supervisors are expected to guide, facilitate and assess institutions’ transition to the revised regulatory framework by focusing on how information systems and capital planning can support the revised prudential metrics and corresponding robustness. |
b) Updated Supervisory Review and Evaluation Process by ECB’s Supervisory Board
| Background and rationale | Accuracy comments | |
| European Central
Bank In progress 2025–2026 Not determined |
• The actions taken because of the Expert Group’s review of the Supervisory Review and Evaluation Process (SREP) and a report published by the European Court of Auditors on how to streamline the SREP review will result in simpler, more flexible supervisory processes and a shorter timeline. • The ECB changes to SREP are the following: – Comprehensive planning: Supervisors plan their activities throughout the year, taking into consideration the external environment and bank-specific risks. – Multi-year assessment (MYA): ECB teams will prioritise a few specific modules each year, assessing the rest at a later point in accordance with the Risk Tolerance Framework. – Flexible Risk Assessment System (RAS): certain risk assessments can be completed with greater flexibility at the discretion of the Joint Supervisory Team. – Proportionality: ECB internal reporting will be simplified for smaller banks. – Supervisory methodologies: ECB is currently revising the Pillar 2 methodology to make it simpler and more transparent. – IT and analytical tools. – Clear and concise decisions: ECB will reduce the length of SREP decisions by focusing on key supervisory concerns, outlining expectations and including actionable measures. • Changes to the way ECB calculates capital requirements. The revised P2R methodology will undergo an initial test phase and will not be implemented until 2026. Stakeholders and the industry will be informed of potential changes in a timely manner. • ECB’s next steps: ECB will take a staggered approach to implementing the changes to the SREP across the 2025 cycle, which ends in October, and the 2026 cycle, which ends in September, reflecting the gradual revisions that will be implemented over the next two years: – The MYA, the flexible RAS and shorter SREP decisions will be introduced in the 2025 SREP cycle. – The new P2R methodology will become applicable in the 2026 cycle. |
• Credit institutions need to see what the real impact of this new ECB methodology will be, not only in terms of consumption of regulatory capital, but also in terms of taking on additional costs to implement the methodology (e.g. more specialised knowledge to comply with the regulation), which could partially offset the benefits. • By 2025, credit institutions will face additional various challenges that impact solvency: – Stress Test by the EBA to demonstrate the resilience of institutions in both baseline and adverse scenarios – Adoption of Basel IV, which will increase capital requirements for EU banks – Integration of environmental risks into the capital requirements of Pillar I. • This is an additional incentive to the current supervisory situation, for credit institutions to be able to demonstrate once again their robustness in solvency, risk assessment and management, as well as their operational resilience in the face of the new regulatory framework and variation of the supervisory process and evaluation, adapting their IT systems and analytics. • In addition, EBA identified, on 8 July 2024, key supervisory areas as part of the European Supervisory Examination Programme (ESEP) for 2025. It provided competent authorities with a single set of priorities for implementation in 2025, as set out below: – Testing and adjusting to increasing economic and financial uncertainties. Institutions’ efforts should be supported by appropriate stress testing capabilities, consistently deployed including in the context of the Internal Capital Adequacy Assessment Process (ICAAP) and Internal Liquidity Adequacy Assessment Process (ILAAP). – Digital changes. The new Legislation on Digital Operational Resilience Act (DORA) becomes applicable from 17 January 2025 onwards, setting harmonised requirements across the EU financial sector and developing a single rulebook and system of supervision to cover digital operational resilience. – Transitioning towards Basel III and the EU banking package implementation (please see first topic in this document). – The institution-specific nature of the SREP should guide supervisors in the bank-specific supervisory review, where all material idiosyncratic risks should be assessed. |
c) Countercyclical Capital Buffer by National Competent Authority
| Background and rationale | Accuracy comments | |
| Competent National Authority
Proposal Q2 2024 In progress Not determined |
• The Countercyclical Capital Buffer (CCB) is the main macroprudential tool available in current regulations in the European Union to address the cyclical dimension of systemic risks. • Capital buffers are additional capital requirements on top of the requirements established according to the individual risk level of each credit institution, designed both to curb the systemic risk growth and to strengthen the solvency position of these institutions, enabling them to absorb the losses that would arise if these risks materialised. • The National Competent Authority (NCA) established the CCyB considering the framework for monitoring cyclical systemic risks, through a set of 16 main indicators grouped into four dimensions: – The macroeconomic environment encompasses economic activity and labour market indicators, such as the real GDP growth rate and unemployment rate. – The macro financial environment encompasses financial indicators, such as private credit and the house price index, among others. – The financial markets environment encompasses risk indicators such as systemic risk. – The financial status of the banking system encompasses indicators computed from consolidated and individual accounting information reported by credit institutions to the NCA. • The CCyB is activated during the upward phases of credit cycles through an increase in capital requirements to curb the development of systemic risk, enhancing the solvency level of credit institutions, and thereby improving their capacity to mitigate such risks. This buffer is released (fully or partially) during the downward phases of credit cycles to help minimise the negative impact of crises on the provision of credit to the real economy. • The NCA in Spain intends to set the CCyB rate from Q4 2024 at 0.5% (mandatory from 1 October 2025). Subsequently, and provided that cyclical systemic risks remain at a standard level, the NCA is expected to raise the CCyB rate to 1% from Q4 2025 (mandatory from 1 October 2026). This second increase in the buffer rate will require a new decision, separate from the one subject to this public notice, which will be the subject of a new public notice at the appropriate time. |
• The update framework to establish the CCB: – Follows the recommendations of the European Systemic Risk Board (ESRB). – Incorporates experience in the use of this capital buffer in Spain and other countries over the last decade. – Aligns the framework with the latest guidance on the use of the CCB issued by the Basel Committee on Banking Supervision (BCBS) to authorities in all jurisdictions. – Follows the recommendations to establish a neutral positive level of the CCyB as outlined in the conclusions of the International Monetary Fund (IMF) staff during their 2024 Article IV mission to Spain. • The two most notable changes in the new framework are as follows: – Under the new framework, the CCyB rate will be positive when cyclical systemic risk is at an intermediate or standard level, neither very high nor very low (previously the activation of this instrument occurred exclusively when the level of cyclical systemic risks was high). – The indicators scope for monitoring cyclical systemic risks is expanded (under the previous framework only the deviation of the credit-to-GDP ratio from its long-term trend, known as the “credit-to-GDP gap” was considered). • None of the Spain’s six major credit institutions would encounter difficulties in meeting the new capital requirement, even if the requirement were 1%, instead of 0.5% in October of this year. • The increase in solvency requirements implies that institutions cannot employ this regulatory capital in new operations, thereby limiting the investment capacity of credit institutions’ economic capital. |
d) 2024 Single Resolution Board’s Resolution Planning Cycle
| Background and rationale | Accuracy comments | |
| • The 2024 SRB Work Programme sets out the SRB’s roadmap for the shift from resolution planning to operationalisation, resolution testing and crisis readiness, ensuring that each plan and preferred resolution strategy can be implemented and at short notice. • The plans are prepared by the SRB in cooperation with the National Resolution Authorities (NRAs) and updated on an annual basis considering changes in the market and in banks themselves, to make sure that there are ready-to-go plans that can be immediately operational, if necessary. • It provides a structured framework to organise all bank-specific resolution planning activities and to implement the SRM’s strategic objectives on resolvability of banks. • The SRB resolution planning approach is as follows: – During the Resolution Planning Cycle (RPC) at SRB, the Internal Resolution Team (IRT): – Further update and operationalise the resolution plans; – Determine the MREL; – Conduct the resolvability assessment for each SRB bank. – The review phase: – SRB quality assurance is a centralised internal process conducting a quality review of resolution plans combining vertical and horizontal checks. – ECB consultation with banks as part of the process to draw up resolution plans, in particular regarding the determination of MREL, the assessment of resolvability and substantive impediments. – The approval phase: the decision-making process for resolution plans is different for banks without subsidiaries or significant branches in non-participating member states than for those with subsidiaries or significant branches in non-participating member states, for which an RC is established. – The communication phase: once the resolution plans and MREL decisions are approved by the SRB’s Extended Executive Session (ExExS), the SRB shares a summary of key elements of the plan with the bank and communicates the MREL decision to the NRA, which will implement it vis-à-vis the bank. For RC banks, the SRB communicates the joint decisions to the RC. |
• The SRB will monitor banks’ compliance with the SRB Expectations for Banks (EfB), which were phased in by the end of 2023. • The SRB has set the 2024 policy milestones and accompanied them with concrete work priorities in the 2024 RPC communicated to banks in 2023. • As a new element, the SRB has launched SRM Vision 2028 to implement a new strategy for the SRM from 2024 to 2028. In this context, the SRB will focus its resolution planning activities on testing banks’ resolvability and the operationalisation of the resolution strategies defined in the resolution plans. This will be integrated into the annual RPC without changing its overall timelines and key elements. • General milestones in 2024: – Focusing policy work in 2024 on lessons learned from the application of the existing policies, specific areas – revision of the resolvability assessment methodology – and activities linked to the strategic review. – Conducting close monitoring of resolvability and preparation of the substantive impediments procedure for those banks that show insufficient progress towards achieving resolvability. – Conducting close monitoring of the final MREL targets, which became binding as of 1 January 2024. – Updating the deep-dive guidance, building the on-site inspection guidance and conducting more deep dives and on-site inspections. • The SRB EfB will remain the general reference for banks’ resolvability capabilities and IRTs’ resolvability assessment. SRB plans to revisit its resolvability assessment methodology and provide a resolvability self-assessment template (public consultation in Q3 2024). |
e) Bail-in Part of the Single Resolution Mechanism’s Toolkit
| Background and rationale | Accuracy comments | |
| Single Resolution Mechanism
Report Finished In progress 26 June 2024 |
• Bail-in is a key resolution tool, which allows the write-down of debt owed by a bank to creditors or its conversion into equity to absorb losses and stabilise the bank. • EBA’s Guidelines to resolution authorities on the publication of the write-down and conversion and bail-in exchange mechanism (EBA/GL/2023/01) recommend that resolution authorities publish their exchange mechanism in the context of bail-in. • This document guides operations within the bank and with external stakeholders to execute the SRB’s bail-in decision. These operations are subject to the national bail-in mechanism applied to the bank under resolution. This mechanism is defined by each Banking Union jurisdiction in accordance with their respective national legal framework. • This report is structured around the different stylised phases of a resolution process, describing the roles of the SRB, the National Resolution Authorities (NRAs), the bank, and other stakeholders throughout these phases in relation to the bail-in. • Resolution planning and preparation for resolution: – Resolution planning – Preparing for resolution – Drafting and issuing the resolution scheme – The national implementing act and jurisdiction-specific bail-in mechanism • Resolution period: – External execution of bail-in: the exchange mechanism in practice – Bail-in in a cross-border context • Post-resolution: – Business Reorganisation Plan (BRP) – Valuation 3, NCWO |
• The “FSB Key Attributes” defined at the G-20 the elements of an effective resolution framework in response to the global financial crisis to address the problem of “too big to fail” financial institutions. They are the basis of TLAC/MREL requirements. • In Europe, the resolution scope is broader than systemic institutions, as it includes those with a public interest. The remaining institutions go into liquidation. • Resolution tools: – Bail-in: amortisation and conversion of equity and debt – Business sale: full (sale of shares) or partial (sale of assets) transfer of the distressed bank’s business to one or more buyers. – “Bridge bank”: transfer of part or all of the shares or assets and liabilities to a temporary entity that can be arranged to separate it from the rest, while preserving the essential functions. – Asset separation: transfer of assets and liabilities from the distressed bank to an asset management vehicle (AMV) with the aim of maximising its value (“bad bank”). • The authorities have two types of financial resources to manage a resolution: – Internal resources (TLAC/MREL), consisting of capital and eligible income instruments. – Collective funds (Single Resolution Fund), which are funded by contributions from institutions based on their deposits and risk profile. • The MREL is the first loss-absorbing mechanism to be used by banks. However, smaller entities in several jurisdictions have trouble issuing eligible liabilities in the market or placing them with suitable investors. • The European Deposit Insurance Scheme (EDIS) is key as the third pillar of the Banking Union to equalise the level of depositors’ confidence in the Single Market and thus the “level playing field”, strengthen protection against local and national shocks and spread risks across the member states of the Banking Union. • Recent crises are a reminder of the criticality of robust liquidity support mechanisms. • The resolution lessons learned can be summarised in two issues: authorities need strong public liquidity support mechanisms and must retain flexibility to manage banking crises. |
f) 2025 European Banking Authority’s Stress Test
| Background and rationale | Accuracy comments | |
| European Banking Authority
Methodological Note In progress January 2025 Not determined |
• EBA is required, in cooperation with the European Systemic Risk Board (ESRB), to initiate and coordinate EU-wide stress tests to assess the resilience of financial institutions to adverse market developments. • The objective of the EU-wide stress test is to provide supervisors, banks and other market participants with a common analytical framework to consistently compare and assess the resilience of EU banks and the EU banking system to shocks and to challenge the capital position of EU banks. • The exercise is based on a common methodology, internally consistent and relevant scenarios, and a set of templates that capture starting point data and stress test results to allow a rigorous assessment of the banks in the sample. • 68 banks from the EU and Norway, including 54 from the euro area, will participate in the exercise, thus covering 75% of the EU banking sector. • This forward-looking exercise will assess the resilience of EU banks in the face of adverse economic conditions, providing essential data for the 2025 Supervisory Review and Evaluation Process (SREP). • The EBA will maintain a primarily constrained bottom-up approach, complemented by supervisory top-down models that will offer net fee and commission income projections, as well as the newly centralised NII projections to the participating banks. The methodology will further leverage the breakdown of credit risk by sector of economic activity. • The introduction of CRR III into the methodology means that the Risk Exposure Amount (REA) will need to be restated for the risk areas, while the output floor will be computed on the total REA. Considering the Commission’s announcement to postpone the implementation of the CRR III market risk rules (FRTB) until 1 January 2026, EBA has adjusted the draft methodology to align with the current market risk REA regulations, effective as of the start date of the exercise. • EBA remains prepared to update this methodology to accommodate any further information or changes following the adoption of Commissions’ Delegated Act. • Proportionality will be emphasised for smaller and less complex banks to promote efficiency and transparency. Instead of a single capital threshold, banks will be evaluated against the relevant supervisory capital ratios within a static balance sheet assumption. The results from the stress test will play a crucial role in informing the SREP, thereby influencing decisions on bank capital resources and future capital planning. |
• This document describes the common methodology that defines how banks should calculate the stress impact of the common scenarios and, at the same time, sets constraints for their bottom-up calculations. • In addition to setting these requirements, it aims to provide banks with adequate guidance and support for performing the EU-wide stress test. • This guidance does not cover the quality assurance process or possible supervisory measures that should be put in place following the outcome of the stress test. • The exercise is run at the highest level of consolidation. The scope of consolidation is the perimeter of the banking group as defined by the CRR/CRD. • Banks are permitted to use pro forma data only for a selected list of events that are considered to affect the banks’ scope of consolidation and/or the banks’ structure so that the financial statements no longer show a representative view of the bank. The list includes mergers, acquisitions, spin-offs of relevant business units, divestments and transfers of assets/liabilities. • The results of the EU-wide stress test on a bank-by-bank basis and in the form of aggregated analyses and reports are published by EBA using common disclosure templates. • Climate-related and broader ESG risks are a growing focus of banks and supervisors given the increases in relevant risk drivers, such as intensification of extreme weather events translating into higher physical risks, or higher risks of disorderly transmission, for example due to geopolitical tensions. • Thus, it is important that CAs continue to monitor institutions’ efforts to appropriately reflect ESG risks in their business strategies, governance and risk management processes. • EBA considers tackling climate-change-related risks – transition and physical – through adequate methodologies, data and scenarios while improving its stress test approach. |
3. Regulatory next steps
| Regulatory codification | Steps ahead | Deadline |
| a. Basel III Reforms publication in the Official Journal of the European Union | The application date for CRR III is: | 1 January 2025 |
| Some provisions will apply from the effective date: | 9 July 2024 | |
| Other transitional provisions will apply: | Until 2032 | |
| b. Updated Supervisory Review and Evaluation Process by ECB Supervisory Board | The MYA, the flexible RAS and shorter SREP decisions will be introduced in: | The 2025 SREP cycle |
| The new P2R methodology will become applicable: | The 2026 cycle | |
| c. Countercyclical Capital Buffer by National Competent Authority | The NCA in Spain intends to set the CCB rate at 0.5%: | From Q4 2024 and mandatory from 1 October 2025 |
| The NCA is expected to raise the CCB rate to 1%: | From Q4 2025 and mandatory from 1 October 2026 | |
| d. 2024 Single Resolution Board’s Resolution Planning Cycle | Start of the preparation of the 2025 RPC (bank-specific 2025 SRB priority letters): | In 2024 |
| f. 2025 European Banking Authority’s Stress Test | EBA expects to: | |
| Publish the final methodology: | At the end of 2024 | |
| Launch the exercise: | January 2025 | |
| Release the results: | By the end of July 2025 |
Glossary
| The following terms and abbreviations have been used throughout this document: | |||
| AW | Asset Management Vehicle | IRB | Internal Ratings-Based |
| BCBS | Basel Comm itt eon Bankin Super visi n | IRT | Internal R solu ionT eam |
| BR | Business Re rgan sationPlan | JSTs | Jo ntSupervis ry Teams |
| CA | Competent Authorities | MREL | MinimumR quirement fo Own Fund and EligibleLiabilities |
| CCyB | Counter yclicalCapital B ffer | MYA | Multi-Y e arAssessment |
| C DIV | Capital R quirementsDirect veIV | NCA | NationalCompete tAuthority |
| CR III | C api alReq ire entsRegu ationIII | NII | Net InterestIncome |
| CV | Credit V a luationAdjustment | NR s | National Reso utionAuth rities |
| DORA | Di italOpera ionalResilien eAct | OSIs | O -site Inspect ons |
| EBA | Euro eanBanking Au hority | P2R | P llar2 Requ rements |
| E A | EuropeanCourt o Auditors | R S | Risk AssessmentSystem |
| E B | European C ntralBank | RC | ResolutionC lleges |
| EDIS | E ropeanDepo itInsuranceSch me | REA | Risk ExposureAmoun |
| EfB | Expe tationsforBanks | RPC | R e olutionPlanningCycle |
| ESE | Europ an Supervisory Exami ationProgr mme | RTF | RiskToleran eFramew rk |
| ESG | Environment l,Socialand Governanc | RWA | Risk Weighted As ets |
| ESRB | Europe nSystemi Risk Board | SRB | Single Res lut onBoard |
| EU | European U ion | SREP | S pervisoryReview an Evaluation P ocess |
| ExExS | E tendedExecutiveS ssion | SRF | S ngleResolutionFund |
| FRTB | Fund mental R evi wof the TradingBook | SRM | Single R esolutionMechanism |
| ICAAP | Inte nalC pitalAdequacyA sessmentPr cess | TLAC | Total Lo sAbsorbingCapacity |
| IL AP | Inte nal L iquidityAd quacyAssessmentProce s | WDC | Writt -Down an Conversio |