EBA欧洲银行-Public-hearing-on-AE-and-forebearance_6页_465kb

EBA Consultation Summary: Reporting of Asset Encumbrance and Forbearance

Core Content

The European Banking Authority (EBA) conducted a public consultation on the reporting of asset encumbrance and forbearance and non-performing exposures (NPEs). This initiative aims to enhance transparency and support risk assessment in the European banking sector by aligning reporting requirements with EU legislation.

Main Views and Key Information

1. Regulatory Context

• The EBA is tasked with developing binding technical standards (ITS) under the EBA Regulation (EU) No 1093/2010, which outlines its responsibilities in creating regulatory and implementing technical standards.
• The EBA must conduct open public consultations before submitting draft ITS to the European Commission for endorsement.
• The European Commission has 3 months to decide on endorsing a draft ITS, and it cannot alter the content of the EBA's draft without prior coordination.

2. Reporting Mandate

• Article 95a of the Capital Requirements Regulation (CRR) mandates that institutions report the level of asset encumbrance, including repurchase agreements, securities lending, and all forms of asset encumbrance, at least in aggregate terms.
• This reporting requirement is to be included in the implementing technical standard (ITS) for Article 95 paragraph 2 of the CRR.
• The scope of asset encumbrance reporting follows the COREP (Capital Requirements Reporting) framework, meaning all entities subject to COREP reporting must also report on asset encumbrance.
• ESRB (European Systemic Risk Board) recommendations on providing templates for this reporting are also fulfilled through this process.

3. Article 95 (2) CRR

• Institutions subject to FINREP (Financial Information Reporting) are required to report information on forbearance and non-performing exposures.
• This reporting is intended to provide a comprehensive view of the risk profile of an institution's activities, supporting supervisory oversight and systemic risk assessment.

4. Reporting Frameworks

• The COREP and FINREP frameworks are central to the reporting of financial information.
• These frameworks cover a range of financial metrics, including:
  • Own Funds
  • Liquidity
  • Leverage ratio
  • Asset encumbrance
  • Mortgage exposures
  • Large exposures

5. ITS Development Process

• The development of ITS involves a structured process that includes:
  • Public consultation
  • Coordination with the European Commission
  • Endorsement by the Commission
  • Publication in the Official Journal of the European Union
  • Entry into force on the date specified in the ITS

Conclusion

The EBA's consultation on asset encumbrance and forbearance reporting is part of a broader effort to ensure maximum harmonisation of the common rulebook across the EU while remaining proportionate to different financial institutions. By aligning with the CRR and FINREP frameworks, the EBA aims to provide comprehensive and consistent financial data to support supervisory reporting and systemic risk management. The process for developing these technical standards is transparent and involves close coordination with the EU Commission to ensure legal and regulatory coherence.