EBA欧洲银行-20071102SummaryOHonSupervisoryReporting_3页_135kb

Summary on the Open Hearing on Future Developments on Supervisory Reporting

Core Content

The CEBS (Committee of European Banking Supervisors) held an Open Hearing on 26 October to assess the current state of supervisory reporting and to gather input for future developments. The hearing was chaired by Arnoud Vossen and Ludger Hanenberg, representing the Expert Group on Financial Information and the Subgroup on Reporting, respectively. A wide range of market participants, including commercial banks and banking associations from various Member States, contributed to the discussion.

Main Findings of the Assessment Study

• Convergence Progress: The CEBS Guidelines on Reporting are seen as the first comprehensive steps towards harmonizing reporting requirements across the EU.
• Commonality and Differences: There is significant commonality in the core layer of the reporting frameworks, but differences in detailed information, particularly in the Guidelines on Financial Reporting, remain a challenge.
• Need for Refinement: Further refinements and evaluations of the real use of data in COREP are necessary. Streamlining FINREP is also considered essential to increase commonality.

Issues Raised by the Operational Network Platform

• Cross-Border Reporting Challenges: Ten cross-border groups operating on a European scale highlighted issues such as differences in reporting procedures (remittance dates and frequency), data definitions, national implementations, IT mechanisms, and accounting standards.
• Impact on Centralised Databases: These differences create major problems for centralised reporting systems that need to meet the requirements of multiple supervisory authorities.
• Shift from Decentralised to Centralised Systems: Groups using advanced methodologies for capital calculation tend to use centralised systems, which contrasts with the more decentralised approach under Basel I.
• Call for Uniform Framework: Some groups are seeking a future uniform reporting framework that can satisfy both home and host supervisory authorities.

CEBS Actions for 2008

• Standardisation of Remittance Dates: CEBS proposed standardised remittance dates for COREP, with a corridor approach that will narrow over time. The suggested dates are 30 and 15 business days for consolidated and solo data, respectively.
• Frequency of Reporting: A shift towards quarterly reporting was proposed, with some exceptions (e.g., monthly for market risk, yearly for financial statement notes).
• Data Definitions: CEBS aims to converge on data definitions by enhancing the Q&A mechanism and developing a priority list for standardised terms.
• User Tests: Conducting user tests in 2008 to evaluate the added value of reporting data was supported by participants.
• Simplification Projects: A potential project to simplify reporting procedures for cross-border institutions, such as creating a single entry point for all reports, was proposed.
• Versioning of Reports: CEBS plans to implement changes once a year, which was positively received.

Future Developments on Supervisory Reporting

• Framework Evolution: Participants suggested a future framework that would rely more on internal systems of institutions, while still requiring standardised information.
• Interest in Advanced Institutions: This approach is particularly appealing to institutions using advanced risk management techniques.
• Domestic Institutions' Needs: Less complex, domestically operating institutions may benefit from more standardised reporting.
• Coordination with Other Authorities: There was a consensus on the need to coordinate with other authorities (e.g., ECB) to improve compatibility without adding new data requirements.
• XBRL Consideration: Views on XBRL were mixed; some saw it as an IT tool, while others believed it could enhance reporting efficiency.

Key Information

• Participants' Agreement: The main findings of the CEBS assessment study were generally accepted.
• Burden of Implementation: COREP implementation is considered burdensome for both cross-border and domestic institutions.
• Short-Term vs. Long-Term Solutions: While a long-term goal of convergence by 2011 was outlined, some participants called for immediate attention to pressing issues.
• Collaborative Approach: CEBS is open to working with the industry through joint working groups to address specific challenges.

Conclusion

The Open Hearing highlighted the need for further harmonisation and streamlining of supervisory reporting across the EU. While the current CEBS guidelines are seen as a positive step, there is a clear demand for more standardisation, especially for cross-border institutions. CEBS has outlined a series of actions for 2008, including standardising remittance dates, frequency, and data definitions, as well as conducting user tests and exploring simplification options. The future direction of supervisory reporting is expected to balance standardisation with flexibility, considering the needs of both advanced and simpler institutions. Coordination with other regulatory bodies and the potential use of XBRL are also seen as important considerations for improving efficiency and reducing reporting burdens.