EBA欧洲银行-16-DEC-2013-Public-hearing-on-Disclosure-of-the-leverage-ratio_10页_904kb

EBA Public Hearing Summary on Leverage Ratio Disclosure

Core Content

The European Banking Authority (EBA) held a public hearing on 16 December 2013 in London to discuss the disclosure requirements for the leverage ratio under Article 451(2) of Regulation (EU) No 575/2013 (Capital Requirements Regulation - CRR). The purpose of the hearing was to outline the EBA's approach to developing a uniform disclosure template, aligning with the Basel Committee on Banking Supervision (BCBS) guidelines while addressing specific EU regulatory requirements.

Main Points

Background on EBA Tasks

• The EBA is tasked with enhancing regulatory harmonisation in Europe through the single rulebook, as outlined in the CRR.
• The CRR was published in June 2013, following the Commission's initial proposals in July 2011 and the Presidency compromise texts in March 2013.
• The EBA has been working on several aspects of the leverage ratio, including supervisory reporting, disclosure, impact assessment, and migration to Pilar 1.

Mandate for Leverage Ratio Disclosure

• The EBA is required to deliver an Implementing Technical Standard (ITS) by 30 June 2014, which will include a uniform disclosure template.
• The disclosure framework will be effective from 2015 onwards.
• The proposed template aligns with the BCBS consultation document from June 2013, except for areas where the CRR provides divergent treatment.
• The European Commission may introduce changes to the leverage ratio exposure definition through a delegated act in the first half of 2014, and the EBA's final ITS must reflect such changes.

Approach of Leverage Ratio Disclosure

• The EBA's draft ITS follows the BCBS template and instructions, incorporating:
  • LRSum: Reconciliation of the leverage ratio denominator with figures reported under relevant accounting standards.
  • LRCom: Breakdown of the leverage ratio denominator by exposure category and disclosure of derecognised fiduciary assets.
• Additional templates were developed by the EBA:
  • LRSpl: Breakdown of the leverage ratio denominator excluding derivatives and short-term trade (SFT) exposures, grouped by counterparty.
  • LRQua: Qualitative information on how institutions manage the risk of excessive leverage and factors influencing the leverage ratio.

Frequency of Disclosure

• Institutions must publish the required disclosures at least annually.
• Annual disclosures should be made in conjunction with the publication of financial statements.
• Institutions may need to publish certain disclosures more frequently than annually, depending on their business characteristics (e.g., scale, activities, international presence).
• The EBA will issue guidelines by 31 December 2014 on how institutions should assess the need for more frequent disclosure under Titles II and III of the CRR.

Key Information

• The EBA is working to ensure consistency and transparency in leverage ratio reporting across EU institutions.
• The disclosure templates are based on BCBS proposals but adapted to the CRR framework.
• The EBA encourages feedback on the draft ITS and related consultation papers.
• The consultation period for the three draft Basel Technical Standards (BTS) ran from 24 October 2013 to 24 January 2014.

Contact Information

• EBA
  Floor 18 | Tower 42 | 25 Old Broad Street
  London EC2N 1HQ | United Kingdom
  Tel: +44 (0)20 7933 9900
  Fax: +44 (0)20 7382 1771
  Email: info@eba.europa.eu
  Website: www.eba.europa.eu