The European Banking Authority's strategic priorities for 2024

The European Banking Authority (EBA) has outlined its work programme for the upcoming year. In 2024, the EBA faces a multitude of mandates, emphasising policy development, risk assessment and implementation of the EU banking package (Capital Requirements Regulation (CRR) III / Capital Requirements Directive VI).

There are also numerous evolving risks that will require monitoring as they further evolve. As a result, the EBA has decided upon five strategic priorities for its work programmed for the year ahead.

EBA strategic priority steps for 2024

Priority 1

  • The EBA is keen on the timely implementation of outstanding BASEL III reforms, to enhance banks’ resilience to future crises and maintain the stability of the European and global financial systems.
  •  Negotiations for the CRR/CRD package concluded in 2023, leaving the EBA with numerous mandates to develop regulatory standards and guidelines, potentially totalling around 125, with many expected by the end of 2024.

Priority 2

  • The EBA will intensify its focus on the impact of rising interest rates, inflation, and potential credit crunches on the real economy and banking sector.
  • Additionally, the authority will fulfil mandates from various regulations and contribute to European and international initiatives outlined in the Sustainable Finance Strategy and Commission's action plan.

Priority 3

  • The EBA's Data Strategy implementation enhances the acquisition, compilation, utilisation, and dissemination of regulatory data, strengthening analytical capabilities.
  • The EBA will finalise the Data Point Model (DPM) standard 2.0, ensuring the data dictionary meets future reporting and digital processing challenges. The authority will use Digital Regulatory Reporting tools to produce reporting frameworks, incorporating joint development with EIOPA.

Priority 4

  • The EBA, along with the other European Supervisory Authorities, will continue implementing the Digital Operational Resilience Act (DORA) and Markets in Crypto Assert Regulation (MiCAR), which will contribute to the digital risk aspect of the Single Rulebook and provide a framework for crypto-asset regulation respectively.
  • Regarding DORA, the ESAs will be responsible for delivering 13 legal mandates, most of which are due in July 2024.
  • Regarding MiCAR, the EBA will deliver 20 technical standards and guidelines. The EBA will begin supervising significant Asset Reference Tokens and Electronic Money Tokens from the end of 2024 which will require the development of supervisory policies, procedures, forms, templates and IT capabilities.

Priority 5

  • In 2024, the EBA will intensify the supervisory conduct of financial institutions, specifically focusing on strengthening competent authorities’ abilities to address financial crime risks.
  • Companies should view these EBA initiatives as an impetus to strengthen their regulatory compliance, risk management, and consumer protection measures while staying agile in the face of evolving financial innovation and Anti-Money Laundering/Counter Financing of terrorism (AML/CFT) frameworks. Collaborative engagement with regulatory bodies and proactive participation in relevant industry initiatives will be key to navigating these changes effectively.

How can we help?

Our prudential risk experts recognise that regulations remain a pivotal driver for the strategic priorities of financial institutions. Our team excels at helping clients within the financial services sector to navigate the intricate web of regulations. We collaborate closely with our clients to identify their regulatory responsibilities and develop strategies for full compliance.

This article is the first instalment in a four-part series outlining the strategic priorities of European Supervisory Authorities for the financial sector.

Read article two on EIOPA strategic priorities for 2024

Read article three on the European Central Bank’s strategic priorities 2024-2026

Read article four on the European Securities and Markets Authority’s strategic priorities for 2024

Join our mailing list banner-Mazars in Ireland