Implementing Technical Standard (ITS) on Supervisory Reporting (Forbearance and non-performing exposures)

Status: Adopted and published in the Official Journal

These Implementing Technical Standards (ITS) aim at implementing uniform definitions and reporting requirements for forbearance and non-performing exposures. Harmonised definitions are crucial in addressing questions over the correct valuation of assets in banks’ balance sheets, in particular, the extent of forbearance and the accurate assessment of non performing exposures. These ITS will be part of a broader set of ITS related to supervisory reporting which 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 and asset encumbrance.

Consultation on draft Implementing Technical Standards (ITS) on supervisory reporting on forbearance and non-performing exposures (EBA/CP/2013/06)

Summary
26/03/2013

The European Banking Authority (EBA) launches today a consultation on definitions and associated reporting templates on forbearance and non-performing exposures. The consultation is open until 24 June 2013.

Harmonised definitions are crucial in addressing questions over the correct valuation of assets in banks ‘balance sheets, in particular, the extent of forbearance and the accurate assessment of non performing exposures,

These consistent EU wide definitions are a key step in the early identification of risks to the financial stability at EU level and will facilitate further actions, such as asset quality assessments.

These definitions will be used for supervisory reporting purposes and complement, but not supersede, existing definitions.

The proposed definitions and templates, once implemented, will allow European supervisors to:

  • assess the extent of forbearance transactions and their effects on asset quality and loss recognition,
  • capture asset quality deterioration,
  • compare asset quality on a more consistent and homogeneous basis across EU institutions.

Next steps

These templates will complement the Implementing Technical Standards (ITS) on supervisory reporting, currently being developed by the EBA in the context of the Capital Requirements Regulation (CRR).

The EBA expects to finalise these additional standards by Q3 2013.

Consultation process

Comments can be sent to the EBA by e-mail to EBA-CP-2013-06@eba.europa.eu by 24 June 2013, indicating the reference EBA/CP/2013/06.

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.