EACB comments on EBA DP on Proportionality assessment methodology (EBA/DP/2021/03)

We welcome the EBA’s aim to ground the principle of proportionality in the framework with concrete tools, including having a reference point for assessing the need for applying a proportional treatment of institutions in the design phase of relevant regulatory pieces.
At the same time, the DP does not make a more detailed contribution to the question of where and how proportionality can be further applied in concrete, also in light of the elements introduced via CRR II. While we understand that this was not the aim of the DP from the onset, some further elements in that respect could have helped the discussion progress further.
It should be noted that proportionality is a fundamental constitutional principle and obligation for EU policy makers, under Article 5 of the Treaty. As such, proportionality is a right and a legitimate expectation for EU banks and not a concession from the authorities, therefore translating the principle into concrete measures should be a core policy objective.
The EBA illustrates that while the legislator considers proportionality when developing new legislative proposals, the ESAs do this when developing their Single Rulebook and are required to use their powers in the most effective and proportionate way. We indeed believe that greater balance between intended policy outcomes and required resources/efforts should be achieved in a more structural manner. In this vein, the methodology, once refined, could also support an assessment of existing technical standards and guidelines to see where they can be improved and made more proportionate.