Adopted and published on the Official Journal
The proposed changes to the Implementing Technical Standards (ITS) Amending Regulation (EU) No 680/2014 on Supervisory Reporting aim at amending and adding new reporting of non-performing and forborne exposures, amending the reporting of profit or loss items (in particular on expenses) and the reporting on leases due to new IFRS 16.
The European Banking Authority (EBA) published today amendments to the Implementing Technical standards (ITS) on supervisory reporting with regard to FINREP. The amendments concern the reporting requirements on non-performing exposures (NPE) and forbearance to allow monitoring of reporting institutions' NPE strategies, the reporting requirements on profit and loss items and the implementation of the new International Financial Reporting Standard on leases (IFRS 16).
These final draft ITS amending the European Commission's Implementing Regulation (EU) No 680/2014 on supervisory reporting with regard to FINREP aim to improve the reporting requirements on non-performing exposures and forbearance in order to strengthen supervisors' ability to assess and monitor these exposures. To ensure proportionality, only institutions having a NPL ratio equal to or greater than 5% are required to report more granular information.
Other changes concern the reporting requirements on profit or loss items, in particular additional details on operating and administrative expenses in order to allow supervisors to make an in-depth analysis on reporting institutions ‘cost structure and to monitor the impact of reporting institutions ‘remuneration policies.
These changes apply to both IFRS and N-GAAP reporters. Finally, for IFRS reporters, minor changes were brought about by the implementation of the new International Financial Reporting Standard on leases (IFRS 16).
These final draft ITS will be submitted to the European Commission for adoption together with the final draft ITS on COREP changes which were published in May 2019.
The publication of the corresponding Data Point Model (DPM) and XBRL taxonomy is expected in August 2019.
The first reporting reference date will be 30 June 2020.
In accordance with Regulation (EU) N0 575/2013, 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, supervisory benchmarking and resolution planning. These ITS are adopted by the EU Commission in the form of Implementing Regulations. These final draft ITS amend and update to the Regulation (EU) No 680/2014.
The European Banking Authority (EBA) launched today a consultation on the new draft version of Data Point Model (DPM) 2.9. The new release is an exposure draft of the new data requirements proposed in the ongoing public consultations on amendments to the Implementing Technical Standards (ITS) on supervisory reporting on COREP LCR, COREP securitisation & FINREP-NPE&FB, P&L and IFRS16. The final DPM 2.9 version will be updated together with the ITS on supervisory reporting to include the feedback received from the public consultations. The consultation runs until 7 December 2018.
Comments 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 7 December 2018.
All contributions received will be published following the close of the consultation, unless requested otherwise.
Uniform data formats are necessary to enable the exchange of reported data regarding credit institutions and investment firms, as part of the operation 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. In this respect, a common data dictionary will lead to greater efficiency in and convergence of supervisory practices across Members States, facilitating the supervisory process and allowing supervisors to identify and assess risks consistently across the EU and to compare EU banks in an effective manner.