EBA publishes discussion paper on the centralisation of EEA banks Pillar 3 disclosures in the EBA Pillar 3 data hub
- The Pillar 3 data hub is a key and strategic project with European relevance that will provide a single access to the prudential information disclosed by all institutions of the European Economic Area (EEA). It promotes enhanced transparency and comparability of data.
- For the first time, users of Pillar 3 information will have centralised access to this data through visualisation and exploration tools, which will facilitate the comparison of information across institutions and disclosure periods.
- The Pillar 3 data hub will offer high-quality banking data to all stakeholders, enhancing market discipline in the EU banking sector, ensuring better access to data, and contributing to the soundness of the European financial system.
The European Banking Authority (EBA) today published a discussion paper on the Pillar 3 data hub processes and its possible practical implications. This project of centralising institutions’ prudential disclosures and making prudential information readily available through a single electronic access point on the EBA website is part of the Banking Package laid down in the Capital Requirements Regulation (CRR3) and Capital Requirements Directive (CRD6). In the discussion paper, the EBA presents its initial ideas for the development of the Pillar 3 data hub and raises for discussion a number of aspects that are relevant for the implementation and functioning of the hub. The EBA welcomes feedback both from institutions and users of Pillar 3 information.
The Pillar 3 data hub will leverage on the EBA’s past and ongoing work in the area of disclosures, namely the development of a comprehensive package on comparable, standardised Pillar 3 prudential disclosures (EBA Pillar 3 Implementing Technical Standards, which are currently under revision), and the EBA European Centralised Infrastructure for Supervisory Data (EUCLID).
The EBA will receive the Pillar 3 information directly form EEA large and other credit institutions and republish it on the Pillar 3 data hub. For small and non-complex institutions, the EBA would prepare the disclosure information based on the supervisory reporting data that these institutions are already submitting and would publish it on the Pillar 3 data hub.
The discussion paper explains the processes for institutions, for the EBA and for users of information and the main challenges that could potentially arise. In parallel, the EBA is running a pilot with a sample of voluntary institutions to test the processes for large and other institutions.
The discussion paper also includes a section on the verifiable legal entity identifiers (vLEI), a new form of digital organisational identity developed by the Global Legal Entity Identifier Foundation (GLEIF). This is a possible scalable and secure solution for the submission of Pillar 3 data by large and other institutions on the EUCLID platform in an efficient manner.
Legal basis and background
The CRR3 proposal (Articles 434 and 434a) mandates the EBA to publish on its website all the prudential disclosures for all institutions subject to these disclosure requirements, making it readily available in a centralised manner to all the relevant stakeholders through a single electronic access point on its website. To comply with this mandate the EBA is building a data hub putting together all the disclosures required under Part Eight of the CRR.
In addition, the feedback to this discussion paper will also be an important source of information for the preparation of the feasibility study that the EBA is envisaged to prepare at a later stage, according to Article 434c of the CRR3 proposal.
The forthcoming Banking Package (CRR3/CRD6), which will implement the latest Basel III reforms, includes the mandate for the EBA to develop a Pillar 3 data hub. The EBA’s plan on how to implement the mandates included in the banking package is explained in the ‘EBA Roadmap on strengthening the prudential framework, also published today.
Comments to this discussion paper can be sent to the EBA by clicking on the EU survey link button on the consultation page. Please note that the deadline for the submission of comments is 29 March 2024. 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 23 January from 12:00 to 13:30 CET. Please register for the hearing here by 19 January 16:00 CET.
Discussion paper on Pillar 3 data hub
(2.17 MB - PDF)
Franca Rosa Congiu