31 January 2023
- The consultation paper proposes new, harmonised reporting requirements for the assessment and monitoring of institutions’ Interest Rate Risk in the Banking Book (IRRBB) across the EU.
- This new reporting will provide supervisors the necessary data to monitor IRRBB risks in credit institutions, taking into careful consideration the concept of proportionality.
The European Banking Authority (EBA) launched today a public consultation on its draft Implementing Technical Standards (ITS) on supervisory reporting with respect to IRRBB. Proportionality is a key consideration in the proposed new reporting, in order to make reporting requirements better suited to the size and risk of the institutions. The consultation runs until 2 May 2023.
These draft amending ITS aim at providing quality data to supervisors to monitor institutions’ IRBB risk and the implementation of the policy package published by the EBA in October 2022. The reporting package under consultation is particularly relevant in the current environment of high inflation combined with growing interest rates. Proportionality has been a key consideration when developing this package, building on the evidence and recommendations drawn from the EBA Cost of Compliance study. In this regard, the consultation paper includes simplified templates for the reporting by small and non-complex institutions (SNCIs) and asks for specific feedback on proportionality for medium institutions.
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 May 2023. 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 15 March 2023 from 14:00 to 16:00 CET. The EBA invites interested stakeholders to register using this link by 13 March at 16:00 CET.
The dial-in details will be communicated in due course
Legal basis and next steps
These draft ITS have been developed in accordance with Article 430(7) of Regulation (EU) No 575/2013, which mandates the EBA to develop uniform formats, definitions, frequencies and reference and remittance dates and IT solutions. These draft ITS has also follow up on the policy work on IRRBB that the EBA completed in October 2022.
The EBA expects to submit these draft ITS to the European Commission in mid 2023. The expected application of the revised requirements is for 30 June 2024 reporting reference date.