ESAs detail work during the pandemic in annual report

The Joint Committee of the European Supervisory Authorities (ESAs) has detailed the joint work of the authorities over the past year, which was dominated by the Covid-19 pandemic.

The ESAs consist of the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA).

Under the EBA Chairmanship, the Joint Committee said it played a pivotal role in 2020 to ensure close cooperation among the authorities in the context of the Covid-19 pandemic. As part of the ESAs' continued efforts in overseeing market developments and cross-sectoral risks, the Joint Committee also prepared the first cross-sectoral Covid-19 risk assessment.

The report highlighted that valuation, liquidity, credit and solvency risks have increased across the board. In addition, the impact of the pandemic on EU banks’ asset quality remained a key concern as significant uncertainty about the timing and size of a recovery persists.

Furthermore, during the year the Joint Committee also adapted to the amended scope of issues under its remit, as laid down in the revised ESAs’ Founding Regulation. Consumer protection remained a key priority with the finalisation of the report including advice to the European Commission under the PRIIPs Regulation.

In addition, the Joint Committee delivered a substantial contribution to the development of the sustainable finance framework, namely by delivering on the mandates stemming from the Sustainable Finance Disclosure Regulation, the joint work on disclosure and the joint input to the Non-Financial Reporting Directive consultation.

Technological Innovation and cybersecurity also became prominent topics in 2020 and the ESAs strengthened their efforts to facilitate cooperation and coordination on digital finance more generally. The Joint Committee continued to work also in the areas of securitisation and financial conglomerates.

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