The EBA launches consultation on amendments to reporting on securitisation, asset encumbrance and G-SIIs

• The EBA is proposing to streamline asset encumbrance reporting for small and non-complex institutions.
• It is also proposing changes to COREP securitisation and G-SII reporting.
• The proposals are a step forward in the implementation of the EBA’s cost reduction measures included in its study on the cost of compliance with supervisory reporting requirements.

The European Banking Authority (EBA) launched today a public consultation to amend its Implementing Technical Standards (ITS) on Supervisory Reporting with regards to COREP and asset encumbrance reporting as well as the reporting for the purposes of identifying global systemically important institutions (G-SIIs). Among others, this consultation paper aims to enhance proportionality in the area of asset encumbrance reporting, as recommended by the EBA’s Report on the Study on the Cost of compliance with supervisory reporting requirements (CoC report). The consultation runs until 23 September 2021.

In response to the Capital Markets Recovery Package (CMRP), the reporting on securitisations needs to be amended to keep it aligned with the prudential requirements. Furthermore, the EBA is proposing some minor amendments to COREP (reporting on own funds and own funds requirements) in order to obtain a deeper understanding of institution’s use of the option to exempt certain software assets from the deduction from own funds.

Following the proposals for enhanced proportionality on asset encumbrance reporting, small and non-complex institutions will be exempted from the reporting of more granular data, as proposed in the CoC report. Besides that, this consultation paper suggests changing the definition of the level of asset encumbrance.

Regarding the reporting of information for determining G-SIIs and assigning G-SII buffer rates, the EBA is proposing to slightly expand the scope of application of the reporting obligation, to include standalone entities, and not only banking groups, that meet the relevant criteria.

Consultation process

Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 23 September 2021. All contributions received will be published following the end of the consultation, unless requested otherwise.

A public hearing will be organised in the form of a webinar on 9 July from 10:30 to 11:30 CET. The EBA invites interested stakeholders to register using this link by 6 July, 16:00 at the latest. The dial-in details will be communicated after the registration deadline.

Legal basis and next steps

These draft ITS have been developed in accordance with Article 430 of Regulation (EU) No 575/2013, which mandates the EBA to develop and specify uniform formats, definitions, frequencies and reference and remittance dates and IT solutions for the reporting to supervisory authorities.

The EBA expects to submit these draft ITS to the European Commission in Q4 2021 or Q1 2022. The revised requirements are envisaged to apply from the reference date 31 December 2022.