EBA consults on amending ITS on LCR and LR reporting

16 December 2014

The European Banking Authority (EBA) launched today two consultations on two draft Implementing Technical Standards (ITS) amending the Commission's Implementing Regulation on supervisory reporting with regard to the Liquidity Coverage Ratio (LCR) and the Leverage Ratio (LR). The proposed amendments follow the Commission' Delegated Acts specifying the LCR and the LR respectively. The consultation on the amendments to the LCR reporting will run until 10 February 2015 and the one on the amendments to the LR reporting will run until 27 January 2015.

Proposed amendments to the LCR reporting

Following the Commission's adoption on 10 October 2014 of a Delegated Act specifying the LCR framework, the EBA now has developed amendments to the current ITS on reporting. The proposed amendments are only applicable to credit institutions and not to investment firms. The latter will continue reporting the LCR items using the current instructions and templates. These ITS will provide credit institutions with a completely new set of templates and instructions so as to capture all the necessary LCR items and to adequately ensure a proper supervisory reporting of the LCR according to the Commission's Delegated Act. In addition, these ITS outline all the necessary steps needed for the calculation of the ratio. For informative purposes only, the EBA is also publishing an excel-based "LCR calculation tool", which is not part of the ITS and, therefore, will not have any legal value for reporting purposes.

Proposed amendments to the LR reporting

Following the Commission's adoption on 10 October 2014 of a Delegated Act amending the definition of the LR in the Capital Requirements Regulation, the EBA now has developed amendments to the current ITS on reporting. The proposed amendments to the LR reporting instructions and templates are, however, limited and mainly reflect an alignment with the standard on LR published by the Basel Committee on Banking Supervision (BCBS). 

Implementation timeline

In terms of implementation, for both the amended LCR and LR reporting, the EBA is proposing to have the first reference date six months from the adoption of the updated ITS, with the restriction that the resulting reference date would be no earlier than December 2015.

Consultation process

Comments to both consultations can be sent separately to the EBA by clicking on the "send your comments" button on the respective consultation page. Please note that the deadline for the submission of comments is 10 February 2015 for the ITS on LCR and 27 January 2015 for the ITS on LR.
 
A joint public hearing for both ITS will take place at the EBA premises on 15 January 2015 from 14.00 to 17.00 UK time. All contributions received will be published following the close of the consultation, unless requested otherwise.

Legal basis 

These draft ITS have been developed to adequately reflect at the reporting level the single rulebook, which will be to a great extent updated as a result of the Commission's LCR and LR Delegated Acts.