Question ID:
2013_362
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Topic:
Supervisory reporting - COREP (incl. IP Losses)
Article:
321-324
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (as amended)
Article/Paragraph:
4-6
Disclose name of institution / entity:
No
Type of submitter:
Credit institution
Subject Matter:
OPR Details
Question:

a)Could you provide an explanation to the reference to Article 5 point (b) (2) iii in paragraph 124 of the COREP instructions (operational risk details template)? b)Is EBA going to publish every year the sum of individual balance sheet totals of all institutions within a Member State or should we ask this information from the national supervisor? c)Article 6 of the ‘Draft ITS on supervisory reporting’ refers to article 4. Is this correct? d)If the ratio of individual balance sheet total on the sum of individual balance sheet totals of all institutions within the same Member State is higher than or equal to 1% over the first reporting period (Q1 2014), some information about operational losses has to be reported. Is this a correct interpretation of the entry criteria mentioned in article 4 of the ‘Draft ITS on supervisory reporting’?

Background on the question:

a)The COREP instructions refer in paragraph 124 to Article 5 point (b) (2) iii of the ‘Draft ITS on supervisory reporting’. This article refers to institutions using the Basic indicator approach. However, these are entirely exempted from reporting OPR Details. b)Article 5 point (b) 2 ii refers to the ratio of individual balance sheet total on the sum of individual balance sheet totals of all institutions within the same Member State. We’re not sure which figure to use. c)We think the reference should be article 5. d)We're not sure about how to read references like 'on the same reporting reference date' or 'from the next reporting reference date'.

Date of submission:
08/10/2013
Published as Final Q&A:
07/03/2014
Final Answer:
  1. In Annex II of the Draft ITS on Supervisory reporting released on 26 July 2013, point 124 referred to Article 5 point (b) (2) iii instead of Article 5 point (b) (2) ii. This error has been corrected and in Annex II of the Regulation (EU) No 680/2014 13 ITS on supervisory reporting of institutionsAnnex II of the Draft ITS released on 19 September 2013, point 124 refers to Article 5 (b) (2) ii.
  2. The sum of individual balance sheet totals of all institutions within each Member State is published on the Supervisory Disclosure webpage of the EBA, in the aggregate statistical data on national banking sectors. The same data is displayed on the Supervisory Disclosure webpage of each national competent authority. The figures are completed by competent authorities as of 31 December each year and published on the following 31 July.
  3. In the Draft ITS on Supervisory reporting released on 26 July 2013, article 6(a) referred to article 4 instead of article 5. This error has been corrected since and in the Regulation (EU) No 680/2014 13 ITS on supervisory reporting of institutionsDraft ITS released on 19 September 2013, article 6(a) refers to article 5.
  4. According to article 4(2) of the Regulation (EU) No 680/2014 13 ITS on supervisory reporting of institutionsDraft ITS on reporting, for the first two reporting reference dates, institutions shall report the information subject to thresholds if they exceed the relevant thresholds on the same reporting reference date. Therefore, if institutions exceed the threshold set out in article 5 (b) (2)(bii) of the ITS on reporting on the first reporting reference dates (Q1 2014), they shall report the information subject to this threshold for the Q1 2014 reporting reference date.

 

*As of 1/8/2014 the content of this answer was modified to reflect the publication of the final ITS on supervisory reporting of institutions in the Official Journal of the European Union. As a result, the references to the ITS were updated and the disclaimer deleted. For reasons of transparency, revisions are highlighted in track changes.

Status:
Final Q&A
Answer prepared by:
Answer prepared by the EBA.
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