Today, the European Banking Authority (EBA) released an updated list of institutions with reporting obligations for the 2024 EU supervisory benchmarking exercise. This exercise will involve a sample of 110 institutions from 16 countries across the EU and the European Economic Area.
The purpose of this benchmarking exercise is to assess the quality of internal approaches used by institutions to calculate risk-weighted exposure amounts. The EBA conducts this exercise using established data collection procedures and formats of regular supervisory reporting. By doing so, it assists Competent Authorities in evaluating the effectiveness of internal approaches.
The legal basis for these benchmarking exercises lies in Article 78 of the Capital Requirements Directive (CRD). This article mandates the EBA to produce reports aiding competent authorities in assessing the quality of internal approaches.
These annual exercises serve as important supervisory tools based on benchmarks. They support competent authorities in evaluating internal models and facilitate comparisons with peers across the EU. Furthermore, they contribute to increasing the convergence of supervisory practices regarding the application of internal models within the regulatory framework.
