EBA欧洲银行-2012_02_20_ITS_on_reporting_including-feedback_27页_943kb

EBA Technical Standards on Supervisory Reporting Summary

Core Content

The European Banking Authority (EBA) was mandated to develop implementing technical standards (ITS) under the Capital Requirements Regulation (CRR) to enhance supervisory reporting efficiency and data quality. The ITS aim to streamline reporting processes, reduce costs for banks, and provide a consistent framework for national supervisors and the European System of Financial Supervision (ESFS). These standards are directly applicable across the EU without the need for national-level legislation, ensuring a single rulebook while maintaining proportionality based on the nature, scale, and complexity of financial institutions.

Main Features of ITS

• Objectives:

  • Increase efficiency in reporting systems
  • Enhance analytical ability for national supervisors (NSA) and the EBA
  • Improve data quality through a common set of data and clear definitions

• Adoption:

  • The ITS are adopted by the EU Commission through implementing acts (regulations or decisions)
  • Direct application, no further national implementation required

• Proportionality:

  • Tailored to the institution's size, complexity, and activity
  • Includes frequency, thresholds, and exemptions for smaller or domestic-only banks and certain investment firms

• Uniform Implementation:

  • Ensures consistent application across the EU
  • Uses common structure, conventions, and definitions
  • Incorporates validation rules and XBRL taxonomies (not mandatory)

ITS Development Process

• Starting Point: Based on COREP and FINREP guidelines
• Main Drivers:
  • Streamlining reporting to reduce costs
  • EU regulation, particularly the CRR
  • Addressing data gaps for national supervisors and the ESRB
• Integrated Approach: Several ITS are bundled into one EU Regulation
• Timeline: EBA was to deliver ITS by 1.1.2013 in areas such as own funds, mortgage exposures, large exposures, liquidity, and leverage

Key Reporting Areas under ITS

COREP – Capital Adequacy (CA1 to CA5)

• Revisions: Due to new CRR provisions, a complete revision of CA information was undertaken
• New Elements: Additional information on own funds components and transitional provisions
• Supervisory Needs: Covers Basel III reporting and ensures consistent data definitions
• Transitional Provisions: Use of the gross-approach for easier analysis and comparison

COREP – Credit Risk Information

• CR SA: Limited to 5 exposure classes instead of 16
• CR IRB: Country-specific risk parameters and breakdowns
• Risk Analysis: Focus on changes and trends in PD, LGD, and risk weights
• Portfolio Insight: Detailed information on SME portfolios and sub-exposure classes
• Geographical Breakdown: Financial exposures broken down by country and exposure type

COREP – Securitisation

• CR SEC SA/IRB: Reporting on outstanding positions based on credit quality steps
• SEC Details: Provides deeper insight into securitisation structures and positions
• Purpose: To meet additional supervisory needs learned from the financial crisis

FINREP – Main Features

• Reporting Population: Credit institutions on a consolidated basis
• Frequency: Quarterly, with exceptions for certain templates (semi-annual)
• Data Content:
  • Tables 1 to 20 (ITS Parts I to IV of Annexes III and IV)
  • Additional data for IFRS reporters (Tables 21 to 31)
• Proportionality: Embedded in templates and reporting frequencies
• Materiality Thresholds: For country-by-country breakdowns (Tables 10.1, 10.2, 10.3, 14.3)

FINREP – Own Fund Requirements

• Scope: Applies to consolidated level, regardless of accounting standard
• Templates: Separate for IFRS and non-IFRS data definitions
• Legal References:
  • Regulation (EC) No 1606/2002 (IAS Regulation)
  • Directive 86/635/ECC (Bank Accounts Directive)
• CRR Article 87: Own fund requirements

FINREP – Assets Reporting

• Valuation Rules: Based on IFRS and BAD, with specific references for each asset class
• Breakdowns: Includes NACE codes, residence of counterparties, and residual maturity
• Templates: Designed to capture detailed information on financial assets and liabilities
• Proportionality: Achieved through implicit rules and materiality thresholds

Level 1st to 3rd Accounting Portfolios

• Level 1st: Valuation rules based on accounting frameworks
• Level 2nd: Instruments
• Level 3rd: Counterparties or common asset classes with detailed breakdowns

Draft ITS Annexes III and IV

• Assets: Covers all financial assets and liabilities with detailed references
• Reporting Structure: Includes both IFRS and BAD-based references
• Breakdowns: For specific asset classes such as cash, debt securities, loans, and derivatives
• Carrying Amount: Covered in different templates based on accounting standards

Conclusion

The EBA's technical standards on supervisory reporting are designed to ensure a harmonised and efficient reporting framework across the EU. These standards support both national supervisors and the EBA by providing consistent data, reducing reporting burdens, and enhancing the quality and usability of financial data. The integration of IFRS and national GAAP reporting requirements ensures that all institutions, regardless of their accounting framework, are subject to the same regulatory regime. The use of XBRL taxonomies, validation rules, and materiality thresholds further supports uniformity and analytical capabilities.