EBA amends implementing technical standards on supervisory reporting with regard to financial information (FINREP)

The European Banking Authority (EBA) published today amendments to the Implementing Technical standards (ITS) on supervisory reporting with regard to FINREP. The amendments concern the reporting requirements on non-performing exposures (NPE) and forbearance to allow monitoring of reporting institutions' NPE strategies, the reporting requirements on profit and loss items and the implementation of the new International Financial Reporting Standard on leases (IFRS 16).

Amendments to the ITS on supervisory reporting with regard to FINREP

These final draft ITS amending the European Commission's Implementing Regulation (EU) No 680/2014 on supervisory reporting with regard to FINREP aim to improve the reporting requirements on non-performing exposures and forbearance in order to strengthen supervisors' ability to assess and monitor these exposures. To ensure proportionality, only institutions having a NPL ratio equal to or greater than 5% are required to report more granular information.

Other changes concern the reporting requirements on profit or loss items, in particular additional details on operating and administrative expenses in order to allow supervisors to make an in-depth analysis on reporting institutions ‘cost structure and to monitor the impact of reporting institutions ‘remuneration policies.

These changes apply to both IFRS and N-GAAP reporters. Finally, for IFRS reporters, minor changes were brought about by the implementation of the new International Financial Reporting Standard on leases (IFRS 16).

These final draft ITS will be submitted to the European Commission for adoption together with the final draft ITS on COREP changes which were published in May 2019.

The publication of the corresponding Data Point Model (DPM) and XBRL taxonomy is expected in August 2019.

Implementation and remittance date

The first reporting reference date will be 30 June 2020.

Legal basis

In accordance with Regulation (EU) N0 575/2013, the EBA is required to develop ITS specifying supervisory reporting in the areas of 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 resolution planning. These ITS are adopted by the EU Commission in the form of Implementing Regulations. These final draft ITS amend and update to the Regulation (EU) No 680/2014.