Implementing Technical Standard on Supervisory Reporting (Asset Encumbrance)

Adopted and published on the Official Journal

These Implementing Technical Standards (ITS) aim at implementing reporting requirements for asset encumbrance. The objective is to ensure a harmonised measure of asset encumbrance across institutions.
These ITS will be part of a broader set of ITS related to supervisory reporting which will cover reporting of own-funds and capital requirements (currently under the COREP Guidelines), reporting of financial information (currently under the FINREP Guidelines), reporting on large exposures (currently under the COREP Large Exposures Guidelines) as well as other specific reporting templates on liquidity coverage and stable funding, leverage ratio and forbearance and non performing exposures.

Documents

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Press Release

EBA issues revised version of some of its technical standards

25 July 2014

The European Banking Authority (EBA) published today the updated versions of three final drafts Implementing Technical Standards (ITS) on Asset Encumbrance, Non-Performing Exposures and Forbearance, and Additional Monitoring Metrics for Liquidity. The three versions published today substitute those previously issued on the same topics.

The updated versions of the ITS on Asset Encumbrance and Non-performing exposures and Forbearance remove data point definitions and validation rules from the ITS on supervisory reporting of institutions submitted to the European Commission (which is now published in the Official Journal of the EU as Regulation (EU) No 680/2014) by introducing an additional text in those ITS that have not yet been adopted by the Commission.

In addition, the standards on Additional Monitoring Metrics (AMM) have undergone minor formatting changes which were necessary to ensure a correct transposition into the DPM/taxonomy format and to ensure consistency with the main provisions of the ITS on supervisory reporting. Additionally, some incorrect legal references were rectified and some clarifications added. Here is an overview of the main changes:

Format changes needed for the development of the DPM/Taxonomy (identification of templates, columns and rows used in the DPM);
Deletion of some provisions which were inconsistent with the main instructions of the ITS (precision, treatment of cells without content, use of "Of which");
Additional specifications needed for reporting amounts;
Inconsistencies between templates and instructions, especially in terms of labels or missing explanations;
Correction of legal references and general clarifications.

For the sake of transparency, the EBA also published a track-changes version of the Annexes of the ITS on Additional Monitoring Metrics for Liquidity. The Data Point Model and the set of validation rules applicable to the set of AMM templates will be publicly available on the EBA website shortly.

Legal basis and next steps

The EBA is required, among others, to develop implementing technical standards specifying supervisory reporting in the area of encumbrance of assets for institutions (Articles 99(5) and 100 of Regulation (EU) No 575/2013); additional monitoring metrics (Articles 415(3)(b) of Regulation (EU) No 575/2013) and non – performing exposures (Article 99(5) Regulation (EU) No 575/2013).

EBA publishes final draft technical standards on asset encumbrance

30 October 2013

The European Banking Authority (EBA) published today its final implementing technical standards (ITS) on reporting for asset encumbrance. These ITS, which will be part of the EU Single Rulebook in banking, provide reporting templates and instructions with the ultimate aim of ensuring harmonised reporting of asset encumbrance across institutions.

In particular, the objective of these ITS is to provide supervisory authorities with a standardised and harmonised framework for reporting purposes on the level of asset encumbrance in institutions. These ITS on asset encumbrance complement the existing reporting framework (COREP and FINREP) submitted for endorsement to the European Commission on 26 July 2013.

These ITS consist of three parts:

A legal text which outlines both the frequency and the proportionality criteria in the reporting;
A detailed definition of asset encumbrance, reporting templates, instructions and extensive information to assist institutions in the implementation of their reporting activities on asset encumbrance.
A data point model (DPM) and validation rules providing a structured representation of the requested data. The DPM contains all of the relevant technical specifications necessary for developing information technology reporting formats, as well as common dictionaries of terms that can be used in the institutions' databases.

The development of these ITS has taken into account the proportionality principle in order to ease the reporting burden on smaller institutions which have no material levels of asset encumbrance in light of the of lower complexity of their business models.

Legal basis and next steps

These final ITS have been developed in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (colloquially known as Capital Requirements Regulation or CRR).

The final standards have been sent today to the European Commission for their adoption as EU Regulations that will be directly applicable throughout the EU.

The reporting of asset encumbrance shall be implemented on 30 June 2014 by large institutions with assets above 30bn€ and on 31 December 2014 by all other institutions.

The next step will be the development of a set of guidelines on asset encumbrance disclosure that will provide clear and consistent standards in this area. The EBA expect to publish a Consultation Paper on these guidelines in coming months. The final version will be published in June 2014 and reviewed after one year. This review will then form the basis for the binding technical standards on more extensive disclosure that the EBA will have to develop by 2016.

Consultation Papers

Consultation on draft Implementing Technical Standards (ITS) on Asset Encumbrance Reporting (EBA/CP/2013/05)

Summary 26/03/2013

The European Banking Authority (EBA) launches today a consultation on draft implementing technical standards (ITS) on reporting for asset encumbrance. The ITS, which will be part of the EU single rulebook, intend to develop reporting templates and instructions for asset encumbrance with the ultimate aim of ensuring a harmonised measure of asset encumbrance across institutions. The consultation runs until 24 June 2013.

The aim of these ITS is to provide supervisory authorities with the necessary information on the level of asset encumbrance in institutions in a standardised and harmonised framework. The reporting on asset encumbrance will complement the existing reporting framework, which has been previously consulted upon.

These ITS consist of three parts:

• A legal text which introduces the definition of asset encumbrance and outlines both the frequency and the proportionality criteria in the reporting;

• Reporting templates and instructions which, in the future, will be used for regulatory reporting on asset encumbrance;

• A data point model (DPM) and validation rules providing a structured representation of the requested data. The DPM contains all the relevant technical specifications necessary for developing an IT reporting format.

Following the end of the consultation period, and to the extent that the final CRR text changes before the adoption of the ITS, the EBA will adapt the draft ITS accordingly to reflect any developments.

Consultation process
Comments can be sent to the EBA by e-mail to EBA-CP-2013-05@eba.europa.eu indicating the reference EBA/CP/2013/05. Please note that the deadline for submission has been extended for an extra week until 1 July 2013.

All contributions received will be published following the close of the consultation, unless requested otherwise.

A joint public hearing covering the Consultation Paper on supervisory reporting for forbearance and non-performing exposures and the Consultation Paper on asset encumbrance reporting will take place at the EBA premises on 2 May 2013 at 10am. To register for the public hearing, click here.

Responses

Public Hearing

Note: A Public Hearing is related to this consultation but is not visible to public users since the date is past