Implementing Technical Standards amending Commission Implementing Regulation (EU) No 680/2014 (ITS on supervisory reporting) with regard to the Liquidity Coverage Ratio (LCR)

Status: Adopted and published in the Official Journal

Following the Commission’s adoption on 10 October 2014 of a Delegated Act specifying the LCR framework, the EBA has now developed amendments to the current ITS on reporting. These draft 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. 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).

EBA publishes new DPM and XBRL taxonomy for remittance of supervisory reporting

EBA publishes new DPM and XBRL taxonomy for remittance of supervisory reporting

09 September 2015

The European Banking Authority (EBA) published today an update to the XBRL taxonomy that Competent Authorities should use for the remittance of data under the EBA Implementing Technical Standards (ITS) on supervisory reporting. The new taxonomy will be used for the first reports under the revised Liquidity and Leverage Ratio requirements resulting from Delegated Acts of the European Commission.
 
The updated taxonomy incorporates changes and corrections to the COREP and FINREP reporting structures. In particular, the updated taxonomy incorporates revised reporting structures for leverage ratio, and new parallel reporting structures for liquidity ratio for credit institutions. These changes represent the amendments to the ITS on supervisory reporting resulting from the Commission's adoption of Delegated Acts amending the definition of the Leverage Ratio (LR) and specifying a new Liquidity Coverage Ratio (LCR) framework.
 
In addition, the new taxonomy gives effect to the answer to the Single Rulebook question 2014_1042, which specifies that figures for LCR and Net Stable Funding Requirements (NSFR) templates with breakdowns in significant currencies should be reported in units of the relevant significant currency (and so such reports may contain values which are not all expressed in the same currency).
 
The following documents have been published today: 
  • A set of XML files forming the XBRL taxonomy
  • A description of the architecture of the XBRL taxonomy
  • A description of the Data Point Model (DPM), of which the taxonomy is a standardised technical implementation, including both a database and document representations, along with a description of the formal modelling methodology by which the DPM is defined
The EBA also published today an extension (2.3.2) to the currently applicable XBRL taxonomy set 2.3.1, providing representations of FINREP reports for individual entity consolidation scope. The new DPM and taxonomy elements in 2.3.2 parallel those already existing for consolidated FINREP reports, and are provided by the EBA in order to facilitate further harmonisation of regulatory reporting at the European level. It should be noted that 2.3.2 only adds additional, independent reports for individual consolidation scope FINREP, and makes no changes to existing 2.3.1 reports, with which it is directly compatible at the instance level. As such, it may be ignored by entities not needing to prepare or consume individual scope FINREP reports. 

Applicability

Since the amended LCR and LR ITS will apply 6 months from the date of their publication in the Official Journal, the new 2.4 taxonomy will apply for reference dates following their point of application. Note that this same application date will apply to the whole 2.4 taxonomy set, including reports other than LCR and LR. The new LCR templates are applicable to credit institutions and not to investment firms, the latter will continue reporting the LCR items using the (2.4 multicurrency version of the) current LCR templates.
Regarding 2.3.2, it is not anticipated that individual FINREP data will be remitted to the EBA in the near term, and so the extension will have no relevant applicability at the EBA level. It is however anticipated that competent authorities may choose independently to make use of this harmonised taxonomy in their data collection processes, for example under the ECB's regulation on supervisory financial information.

Background and legal basis

The taxonomy defines a representation for data collection under the reporting requirements related to own funds, financial information, losses stemming from lending collateralised by immovable property, large exposures, leverage ratio, liquidity ratios, asset encumbrance, additional liquidity monitoring metrics, supervisory benchmarking and funding plans. As part of enhancing regulatory harmonisation in the EU banking sector and facilitating cross-border supervision, uniform data formats are necessary to enable comparable data on credit institutions and investment firms across the EU.
 
Although, the EBA XBRL taxonomy was primarily developed for data transmission between competent authorities and the EBA, many authorities have been using it for the collection of supervisory reporting from the credit institutions and investment firms they supervise. In this respect, the taxonomy proposed by the EBA will lead to greater efficiency and convergence of supervisory practices across Members States. In addition, it will facilitate the supervisory process, allowing supervisors to identify and assess risks consistently across the EU and to compare EU banks in an effective manner.
 
 

Press contacts:

Franca Rosa Congiu

E-mail: press@eba.europa.eu - Tel: +44 (0) 207 382 1772

EBA issues amended technical standards on reporting of liquidity coverage ratio

EBA issues amended technical standards on reporting of liquidity coverage ratio

24 June 2015

The European Banking Authority (EBA) published today its updated Implementing Technical Standards (ITS) on supervisory reporting of liquidity coverage ratio (LCR) for EU credit institutions. The ITS include templates and instructions to update the LCR reporting framework following the Commission's adoption of the Delegated Act on the liquidity coverage requirement on 10 October 2014. As part of the EU Single Rulebook in the banking sector, these standards aim at harmonising reporting of the LCR across the EU by providing credit institutions with uniform templates and instructions.

The updated EBA final draft ITS on reporting on liquidity coverage ratio issued today include new templates and instructions for credit institutions so as to capture all the necessary LCR items and to adequately ensure a supervisory reporting of the LCR according to the Commission's Delegated Act. In addition, the ITS outline all the necessary steps needed for the calculation of the ratio.

These new templates and instructions will only be applicable to credit institutions and not to investment firms who will continue reporting the LCR items using the current instructions and templates. However, credit institutions will start reporting using the new instructions and templates only as of the application date of the amended technical standards, which will be specified in their final publication in the EU Official Journal.

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.

Validation rules, data point model (DPM) and XBRL taxonomies reflecting the amended templates are being finalised and will be published at a later stage.

Legal basis

These draft ITS have been developed to adequately reflect at the reporting level the specifications of the LCR introduced in the Commission's Delegated Act.

The draft ITS reflect the Single Rulebook at the reporting level and hence need to be updated whenever the Single Rulebook is updated. The Commission's Delegated Act on LCR constitutes a major update to the Single Rulebook as it provides in detail the liquidity coverage requirement for credit institutions.

Press contacts:

Franca Rosa Congiu

E-mail: press@eba.europa.eu - Tel: +44 (0) 207 382 1772