Implementing Technical Standards on institutions’ public disclosures of the information referred to in Titles II and III of Part Eight of Regulation (EU) No 575/2013

This new comprehensive Implementing Technical Standard (ITS) for financial institutions' public disclosure provides a complete Pillar 3 disclosure framework that seeks to facilitate its implementation by institutions and to improve clarity for users of this information. This ITS is designed to promote market discipline by moving from a silo based approach, with different disclosure policy products, to an all-inclusive ITS. It also implements regulatory changes introduced by the CRR2 and aligns the disclosure framework with international standards.

The original version of the ITS of 15 March 2021 has been amended in the course of the years. A consolidated text of the ITS was provided by the Commission on 8 January 2023. It is a documentation tool which has no legal effect.

Documents - CONSOLIDATED TEXT (08/01/2023)

Consolidated version ITS on public disclosures by institutions under Part Eight of Regulation (EU) N0 575/2013

DOCUMENTS - APPROVED BY THE EUROPEAN COMMISSION

ITS on public disclosures by institutions under Part Eight of Regulation (EU) No 575/2013 with Annexes (zip, 1,010KB)
Main Act, Templates, tables and instructions in all EU languages (zip, 19,720 KB)

Documents - APPROVED BY THE EBA BOARD OF SUPERVISORS AND SUBMITTED TO THE EUROPEAN COMMISSION

Links

News

EBA releases the technical package for phase 1 of its 3.3 reporting framework

02 June 2023

The European Banking Authority (EBA) published today the technical package for phase 1 of version 3.3 of its reporting framework. The technical package provides standard specifications and includes the validation rules, the Data Point Model (DPM) and the XBRL taxonomies for this phase of version 3.3.

Version 3.3 phase 1 does not include any amendments to the EBA regulatory products (technical standards or guidelines) and only includes the technical package supporting:

the reporting by competent authorities to the EBA of information for intermediate EU parent undertakings (IPU) threshold monitoring,
a subset of Pillar 3 disclosure templates in preparation for the Pillar 3 Data hub project and
the ad hoc reporting of environmental, social and governance (ESG) data by large institutions with traded instruments fully based on the Pillar 3 disclosures ESG quantitative templates.

The DPM Query Tool has also been updated to reflect the current release.

EBA updates mapping between technical standards on Pillar 3 disclosures and technical standards on supervisory reporting (v3.0)

24 May 2022

The updated mapping aims at improving cost-efficiency for banks and enhancing consistency of data between public disclosures and supervisory reporting.
The updated mapping supports institutions in fulfilling their disclosure obligations and responds to the recommendations included in the EBA Study of the cost of compliance with supervisory reporting requirements.
The amendments mainly address issues raised by competent authorities and the industry.

The European Banking Authority (EBA) published today an updated mapping between quantitative disclosure data points and the relevant supervisory reporting data points. The mapping is part of the EBA’s overall objective to make the reporting and disclosure process more efficient and less costly for banks and aims at facilitating institutions’ compliance with disclosure requirements and improving the consistency and quality of the information disclosed. The updated mapping applies to the reporting framework 3.0 and the Implementing Technical Standards (ITS) on institutions’ Pillar 3 public disclosures.

EBA updates the mapping between the ITS on Pillar 3 disclosures and the ITS on supervisory reporting (v3.0)

06 August 2021

The European Banking Authority (EBA) published today an updated tool, which specifies the mapping between quantitative disclosure data points and the relevant supervisory reporting data points. This tool aims at facilitating institutions’ compliance with disclosure requirements and improving the consistency and quality of the information disclosed.

The updated mapping tool applies to the reporting framework 3.0 and the ITS on institutions’ Pillar 3 public disclosures. The updates included in this version are mainly driven by changes during the adoption process of the ITS on supervisory reporting and the ITS on public disclosures.

EBA consults on institutions’ Pillar 3 disclosure of interest rate risk exposures

28 May 2021

The proposed IRRBB disclosure framework seeks to ensure stakeholders are informed about institutions’ interest rate risks in the non-trading book.
The standards put forward comparable disclosures that should help institutions comply with the requirements laid down in the revised Capital Requirements Regulation (CRR).
This consultation paper is in line with the Pillar 3 disclosure framework of the Basel Committee on Banking Supervision (BCBS).

The European Banking Authority (EBA) launched today a public consultation on draft implementing technical standards (ITS) on Pillar 3 disclosures regarding exposures to interest rate risk on positions not held in the trading book (IRRBB). The draft ITS put forward comparable disclosures that would allow stakeholders to assess institutions’ IRRBB risk management framework as well as the sensitivity of institutions’ economic value of equity and net interest income to changes in interest rates. The proposed standards will amend the comprehensive ITS on institutions’ public disclosures, in line with the strategic objective of developing a single and comprehensive Pillar 3 package that should facilitate implementation by institutions and further promote market discipline.

The draft ITS propose qualitative disclosures on how institutions calculate their IRRBB exposure values based on their internal measurement systems and on institutions’ overall IRRBB objective and management. They also provide quantitative disclosures about the impact of changes in interest rates on institutions’ economic value of equity and net interest income.

In addition, given the ongoing EBA work on the policy framework for IRRBB, the EBA is proposing transitional provisions that should facilitate institutions’ disclosures while the policy frameworks is being finalised.

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 30 August 2021. 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 30 June 2021 from 11:00 to 12:30 CET. The EBA invites interested stakeholders to register using this link (by no later than 28 June 2021, 16:00 CET).

The dial-in details will be communicated in due course.

Legal basis and background

Article 448 of Regulation (EU) No 575/2013 (‘CRR’) requires institutions to disclose, as from 28 June 2021, quantitative and qualitative information on the risks arising from potential changes in interest rates that affect both the economic value of equity and the net interest income of their non-trading book activities referred to in Article 84 and Article 98(5) of the Directive 2013/36/EU (Capital requirements directive- CRD).

The EBA has developed the draft ITS following the mandate in Article 434a of Regulation (EU) No 575/2013. These ITS will amend the Implementing Regulation (EU) No 637/2021 of 15 March 2021 with the aim to facilitate the institutions’ compliance to Article 448 CRR.

When developing these proposals, the EBA has built on BCBS’s Pillar 3 disclosure framework.

The EBA expects to submit these draft ITS to the European Commission in October 2021.

EBA launches consultation on comprehensive Pillar 3 disclosures

16 October 2019

The European Banking Authority (EBA) launched today a public consultation on the new comprehensive Implementing Technical Standard (ITS) for financial institutions' public disclosure, designed to promote market discipline. This ambitious proposal seeks to optimise the EBA Pillar 3 policy framework by moving from a silo based approach, with different disclosure policy products, to an all-inclusive ITS. It also implements regulatory changes introduced by the CRR2 and aligns the disclosure framework with international standards.

The amending regulation (EU) No 2019/876 (‘CRR2') introduced new disclosure requirements for institutions, and a mandate for the EBA to implement them in a way that conveys sufficiently comprehensive and comparable information for market participants to assess the risk profiles of institutions (Article 434a of the CRR2). The new ITS aim to reinforce market discipline, by increasing consistency and comparability of institutions' public disclosures, and to implement the CRR2 regulatory changes in alignment with the revised Basel Pillar 3 standards.

The all-inclusive ITS provide a complete Pillar 3 disclosure framework that seeks to facilitate its implementation by institutions and to improve clarity for users of information. The disclosure ITS have been developed fostering consistency with supervisory reporting, and a mapping between quantitative disclosure data and reporting is provided in order to facilitate compliance by institutions. A parallel consultation regarding the draft ITS on supervisory reporting was also launched today.

This consultation paper is the first one of the deliverables that will be presented in a forthcoming EBA roadmap on institutions' Pillar 3 disclosures. That roadmap, which will be published in Q4 2019, provides an overview of the EBA Pillar 3 strategy, deliverables and timeline for the implementation of all the disclosure requirements included in the CRR2/BRRD2, including ESG risks and climate change related information, as well as the disclosure requirements for investment firms under the IFR.

Consultation process

Responses to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. All contributions received will be published after the consultation closes, unless requested otherwise. The deadline for the submission of comments is 16 January 2020.

A public hearing on this consultation will take place at the EBA premises on 2 December, from 14:00 to 16:00 CET time.

Legal basis and next steps

These draft ITS have been developed in accordance with Article 434a of Regulation (EU) No 575/2013 which mandates the EBA to develop draft implementing technical standards specifying uniform disclosure formats, and associated instructions in accordance with which the disclosures required under Titles II and III shall be made. The same mandate specifies that those uniform disclosure formats shall convey sufficiently comprehensive and comparable information for users of that information to assess the risk profiles of institutions and their degree of compliance with the requirements laid down in Parts One to Seven. To facilitate the comparability of information, the implementing technical standards shall seek to maintain consistency of disclosure formats with international standards on disclosures.

The EBA expects to submit these revised draft ITS to the European Commission in June 2020. The application of the disclosure requirements will be in June 2021.

Press Release

EBA clarifies the status of several disclosure guidelines, and ensures continuous transparency of credit quality of exposures by all types of credit institutions

12 October 2022

The EBA is repealing three outdated disclosure guidelines and amending the scope of application of the Guidelines on disclosure of non-performing and forborne exposures.
With this amendment, the EBA is ensuring a sufficient level of transparency on the credit quality of the exposures held by all institutions.

The European Banking Authority (EBA) is providing today clarity on the applicability of several EBA disclosure guidelines which are replaced totally or partially by the Implementing Technical Standards (ITS) on Pillar 3 disclosure. As part of this effort, the EBA has repealed three guidelines that are replaced by that ITS and revised the scope of application of the Guidelines on disclosure of non-performing and forborne exposures. The amending Guidelines published today ensure the continuity of public disclosures on non-performing and forborne exposures by all credit institutions.

Considering the full overlap of the Implementing Technical Standards on Pillar 3 disclosures with earlier requirements, the EBA is repealing three guidelines that are no longer relevant, including:

Guidelines on disclosure requirements under Part Eight of Regulation (EU) No 575/2013 (EBA/GL/2016/11);
Guidelines on liquidity coverage ratio (LCR) disclosure to complement the disclosure of liquidity risk management (EBA/GL/2017/01);
Guidelines on disclosure of encumbered and unencumbered assets (EBA/GL/2014/03).

The ITS on Pillar 3 disclosures also specify disclosure requirements on non-performing and forborne exposures that are applicable only to large and other listed institutions, in line with Article 442 of Regulation (EU) No 575/2013 (CRR). The EBA believes that such limited scope of application of these disclosure requirements compromises the access by external stakeholders to relevant information on credit quality of exposures of small and non-complex institutions and other non-listed institutions.

Therefore, the EBA amending Guidelines adjust the scope of application of the Guidelines on disclosure of non-performing and forborne exposures (EBA/GL/2018/10) to clarify that these Guidelines will continue to apply to listed small- and non-complex institutions and to other medium-sized institutions that are non-listed. The amending Guidelines will apply from 31 December 2022.

The joint application of the amending Guidelines and the ITS on Pillar 3 disclosures will ensure that all EU institutions will continue to disclose relevant information regarding non-performing and forborne exposure, where transparency on this topic is of particular relevance considering the worsening economic outlook post COVID-19 and the current geopolitical developments.

Legal basis and background

The comprehensive disclosure requirements seat out in the Implementing Technical Standards on Pillar 3 disclosures that apply in the EU based on the Commission Implementing Regulation (EU) 2021/637 since 28 June 2021 include disclosures requirements previously specified in several EBA guidelines.

In line with the Article 16 of Regulation (EU) No 1093/2010, the EBA aims to harmonise the supervisory practices and requirements applicable to all types of credit institutions and to ensure that they all provide sufficient (and proportionate) level of information regarding their non-performing and forborne exposures.

The amending Guidelines do not introduce any new requirements, whilst only clarify the application of the existing EBA guidelines and make sure that the affected institutions continue disclosing the information as they have been doing since 2019.

EBA acknowledges adoption by the European Commission of standards on institutions’ public disclosures

19 March 2021

The European Banking Authority (EBA) acknowledged today the adoption by the European Commission of the Implementing Act laying down implementing technical standards (ITS) on institutions Pillar 3 disclosures. The Implementing Act, which is based on the final draft ITS on institutions’ public disclosures submitted by the EBA in June 2020, was adopted by the Commission on 15 March 2021 but its publication in the EU Official Journal is still pending. The disclosure ITS will apply from 30 June 2021.

The ITS on institutions' public disclosure provide a comprehensive Pillar 3 disclosure framework that seeks to facilitate its implementation by institutions and to improve clarity for users of this information. They also implement regulatory changes introduced by the Capital Requirements Regulation (CRR2) and align the disclosure framework with international standards.

All the related documents published on the EBA website have been updated to reflect the adoption of the Implementing Act.

EBA publishes final draft comprehensive ITS on institutions’ Pillar 3 disclosures and revised final draft ITS on supervisory reporting (Framework 3.0)

24 June 2020

The disclosure ITS implement the new requirements introduced by CRR2 and aims to reinforce market discipline by increasing consistency and comparability of institutions' public disclosures.
The updated reporting framework reflects changes in the CRR and introduces new reporting requirements on net stable funding ratio and counterparty credit risk.
New proportionality measures have been implemented, in particular for small and non-complex institutions.

The European Banking Authority (EBA) published today new Implementing Technical Standards (ITS) on public disclosures by institutions and revised final draft ITS on supervisory reporting that implements changes introduced in the revised Capital Requirements Regulation (CRR2) and the Prudential Backstop Regulation. The publication of the two ITS is a major step forward towards promoting market discipline through enhanced and comparable public disclosures for stakeholders, and towards keeping the reporting requirements in line with the evolving needs for Supervisory Authorities' risk assessments.

CRR2 implements a number of key measures such as net stable funding ratio, leverage ratio and large exposures and introduces new disclosure requirements for institutions on all prudential topics. These comprehensive disclosure and reporting ITS are released in the context of the EBA Roadmaps on the Risk Reduction Package on disclosures and on supervisory reporting.

The disclosure ITS optimise the Pillar 3 policy framework for credit institutions by providing a single overarching package that brings together all previous pieces of regulation and incorporates all prudential disclosures, thus facilitating implementation by institutions and improving clarity for users of such information. The ITS implement the disclosures in a way to ensure that market participants have sufficient and comparable information to assess the risk profiles of institutions, in line with the Basel Committee’s Pillar 3 standards and with the increased standardisation of institutions' public disclosures. This reinforces the ultimate objective of market discipline. The CRR2 definitions for ‘small and less complex institutions’ and ‘large institutions’ support proportionality of Pillar 3 disclosures. In addition, the ITS include thresholds to trigger additional disclosures for large banks based on their risk profiles.

The reporting ITS reflect the changes brought in by the CRR2 and the Prudential Backstop Regulation and include new reporting requirements on counterparty credit risk and net stable funding ratio, non-performing exposures minimum coverage and changes to different areas of reporting, including own funds, credit risk, large exposures, leverage ratio, FINREP and G-SII indicators.

These ITS include several proportionality measures, including simplified net stable funding ratio reporting for small and non-complex institutions. These ITS are designed to replace the Commission's Implementing Regulation (EU) No 680/2014 and they have been used as an opportunity to improve the consistency between the reporting and disclosure requirements, with a view to facilitate institutions' compliance with both requirements.

Implementation and remittance date

The first disclosure and reporting reference dates will be 30 June 2021.

Legal basis and next steps

The ITS on disclosure have been developed in accordance with the mandate included in Article 434a of Regulation (EU) N0 575/2013.

The ITS on supervisory reporting have been developed in accordance with the mandate included in Article 430 of Regulation (EU) N0 575/2013. These final draft ITS replace the Regulation (EU) No 680/2014.

The publication of the corresponding reporting technical package, including the Data Point Model (DPM), validation rules and XBRL taxonomy, is expected by the end of the Summer 2020.

The two ITS have been developed fostering consistency of quantitative data, and a revised version of the mapping between disclosure and reporting will be provided in order to facilitate compliance by institutions and to improve the quality of the information disclosed. Both of these final draft ITS were submitted to the European Commission for adoption.

EBA launches consultation on comprehensive Pillar 3 disclosures

16 October 2019

Consultation process

A public hearing on this consultation will take place at the EBA premises on 2 December, from 14:00 to 16:00 CET time.

Legal basis and next steps

The EBA expects to submit these revised draft ITS to the European Commission in June 2020. The application of the disclosure requirements will be in June 2021.

Consultation Papers