Implementing technical standards on supervisory reporting

These updated ITS include (i) new information on sovereign exposures; (ii) changes to operational risk; (iii) changes to additional monitoring metrics for liquidity and (iv) Q&A-based changes and other minor amendments. These changes form part of the EBA reporting framework version 2.7, which will be applicable for submissions of data as of March 2018.

Documents

Links

Implementing Technical Standards published on the Official Journal

News

EBA acknowledges the Commission adoption of amended supervisory reporting standards

15 November 2017

The European Banking Authority (EBA) acknowledged the adoption by the European Commission of the Implementing Act amending Regulation (EU) No 680/2014 (Implementing Technical Standards on Supervisory Reporting) with regard to amendments to COREP and Additional Monitoring Metrics for liquidity as well as other amendments. The Implementing Act, which is based on the final draft ITS on supervisory reporting submitted by the EBA in April 2017, was adopted by the Commission on 9 November 2017. Its publication in the EU Official Journal is still pending. The amended requirements will apply as of 1 March 2018 (reporting framework v2.7).

The act and annexes as adopted by the European Commission are published under the following link: https://ec.europa.eu/info/law/banking-prudential-requirements-regulation-eu-no-575-2013/amending-and-supplementary-acts/implementing-and-delegated-acts_en.

The related documents published on the EBA website have been updated to reflect the adoption of the Implementing Act (see Implementing Technical Standards on Reporting and Reporting framework 2.7).

EBA updates XBRL taxonomy 2.7 for supervisory reporting

27 April 2017

The European Banking Authority (EBA) published today an update to the XBRL taxonomy that Competent Authorities should use for the remittance of data under the EBA Implementing Technical Standards (ITS) on supervisory reporting. The revised taxonomy will be used for reference dates from 31 March 2018 onwards.

The documents published today include the following:

A set of XML files forming the XBRL taxonomy;
A description of the architecture of the XBRL taxonomy;
A description of the Data Point Model (DPM), of which the taxonomy is a standardised technical implementation, including both a database and document representations, along with a description of the formal modelling methodology by which the DPM is defined.

Applicability

Reports with reference dates as of 31 March 2018 onwards are to use the new taxonomy set (2.7), which is related to the April 2017 framework release.

Background and legal basis

The taxonomy defines a representation for data collection under the reporting requirements related to 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 funding plans. As part of enhancing regulatory harmonisation in the EU banking sector and facilitating cross-border supervision, uniform data formats are necessary to enable comparable data on credit institutions and investment firms across the EU.

Although, the EBA XBRL taxonomy was primarily developed for data transmission between Competent Authorities and the EBA, many authorities have been using it for the collection of supervisory reporting from the credit institutions and investment firms they supervise. In this respect, the taxonomy proposed by the EBA will lead to greater efficiency and convergence of supervisory practices across Members States. In addition, it will facilitate the supervisory process, allowing supervisors to identify and assess risks consistently across the EU and to compare EU banks in an effective manner.

Press Release

EBA issues amended technical standards on supervisory reporting for EU institutions

07 April 2017

The European Banking Authority (EBA) published today its final draft Implementing Technical Standards (ITS) amending the European Commission's Implementing Regulation (EU) No 680/2014 on supervisory reporting so as to keep reporting requirements in line with changes in the regulatory framework and with the evolving needs for Supervisory Authorities' risk assessments. The updated ITS include (i) new information on sovereign exposures; (ii) changes to operational risk; (iii) changes to additional monitoring metrics for liquidity and (iv) Q&A- based changes and other minor amendments. These changes form part of the EBA reporting framework version 2.7, which will be applicable for submissions of data as of March 2018.

Legal basis

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 and supervisory benchmarking. These ITS are adopted by the EU Commission in the form of Implementing Regulations. The present publication comes as an update to the Regulation (EU) No 680/2014.

Consultation Papers

Consultation on amending ITS on additional monitoring metrics for liquidity (EBA-CP-2016-22)

Summary 16/11/2016

The European Banking Authority (EBA) launched today for consultation a proposal to review its Implementing Technical Standards (ITS) on additional monitoring metrics for liquidity, which mainly consists of reintroducing a maturity ladder in line with the reporting requirements laid down in the Commission’s Delegated Act on the Liquidity Coverage Ratio (LCR). These revised ITS aim at providing Competent Authorities with harmonised information on institutions’ liquidity risk profile, taking into account the nature, scale and complexity of their activities. The consultation runs until 2 January 2017.

The revised maturity ladder will require less detail on assets other than high quality liquid assets and on credit steps. It also captures the outflows from committed facilities as well as those due to downgrade triggers. In addition, a memorandum section has been included in the revised ITS to provide details on five LCR components, which help estimate any upcoming volatility of the LCR. Finally, the composition of the time buckets has been amended and the number of rows to be reported reduced.

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 2 January 2017.

All contributions received will be published following the close of the consultation, unless requested otherwise. A public hearing will then take place at the EBA premises on 14 December 2016 from 11.00 to 13.00 UK time.

Legal basis and background

These draft ITS have been developed according to Article 415(3)(b) of the Capital Requirements Regulation, which mandates the EBA to develop uniform formats and IT solutions with associated instructions for frequencies and reference and remittance dates for the purpose of liquidity reporting.

The EBA originally submitted its final draft ITS on additional monitoring metrics for liquidity on 18 December 2013 and a slightly updated version on 24 July 2014. On 1 March 2016, the Commission adopted the ITS without the maturity ladder as, in its view, the latter was based on the provisional approach of reporting requirements on liquid assets and, therefore, needed to be adapted to the detailed definitions of liquid assets laid down in the Commission’s Delegated Act on the LCR.

Responses

Public Hearing

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

Consultation on ITS amending Implementing Regulation (EU) No 680/2014 with regard to operational risk and sovereign exposures (EBA-CP-2016-20)

Summary 14/11/2016

The European Banking Authority (EBA) published today for consultation revised Implementing Technical Standards (ITS) on supervisory reporting. The proposed amendments concern new requirements for the reporting of information on sovereign exposures and changed requirements for the reporting of operational risk data. The standards on supervisory reporting aim at collecting information on institutions’ compliance with prudential requirements in a consistent way and need to be updated whenever prudential or supervisory requirements change. This consultation runs until 7 January 2017.

Information on sovereign exposures was crucial in the past and is becoming even more important now that the treatment of sovereigns is under review. The proposed draft ITS include additional information on sovereign exposures as the currently available data suffers from several shortcomings, which has required, so far, to resort to ad-hoc collections from Competent Authorities.

Considering the significant increase in institutions’ costs stemming from operational risk events and the significant impact on profitability, these draft ITS also propose improvements to the reported information on operational risk. These changes will allow supervisors to monitor the losses due to this risk and to analyse the drivers behind the events triggering such material losses.

Consultation process

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

Legal basis and next steps

These draft ITS have been developed according to Article 99(5) of the Capital Requirements Regulation (CRR), which mandates the EBA to develop uniform reporting requirements.

The EBA expects to submit these revised draft ITS to the European Commission in March/April 2017. The application of the revised requirements will be in March 2018, with the first reporting reference date as of 31 March 2018.