26 July 2013
The European Banking Authority (EBA) published today its final draft Implementing Technical Standards (ITS) on supervisory reporting. They set out reporting requirements related to own funds, financial information, losses stemming from lending collateralised by immovable property, large exposures, leverage ratio and liquidity ratios. These draft ITS will be part of the Single Rulebook aimed at enhancing regulatory harmonisation in the banking sector in the EU and facilitating a proper functioning of cross-border supervision.
Uniform reporting requirements are necessary to ensure fair conditions of competition between comparable groups of credit institutions and investment firms. In this respect, these ITS on reporting requirements will lead to greater efficiency for institutions, but also to greater convergence of supervisory practices across Members States, allowing supervisors to identify and assess risks consistently across the EU and to compare EU banks in an effective manner.
These draft ITS specify uniform formats, frequencies, dates of reporting, definitions and IT solutions to be applied by credit institutions and investment firms in Europe on both an individual and consolidated level, with the exception of financial information.
The ITS package released today includes the following technical documents:
Main provisions covering reporting requirements;
A set of templates and related instructions regarding supervisory reporting requirements;
A set of data point descriptions and
A set of validation formulae.
Questions from stakeholders on the interpretation and implementation of the requirements included in the ITS will be answered by the EBA using a Q&A tool available on its website. Answers will only be published once the Standards have been published in the Official Journal of the European Union.
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.
In the second half of 2013, the EBA is expected to publish an update of these ITS as a result of additional reporting requirements regarding asset encumbrance, non performing loans and forbearance.