EBA欧洲银行-Public-Hearing-on-the-Draft-amending-ITS-on-Supervisory-Disclosure-2017-11-17_13页_1mb

EBA Draft Implementing Technical Standards Summary

Core Content

The European Banking Authority (EBA) has published a draft Implementing Technical Standards (ITS) aimed at amending the existing Commission Implementing Regulation (EU) No 650/2014. The regulation outlines the format, structure, contents list, and annual publication date of supervisory information that competent authorities (CAs) must disclose in accordance with Article 143(3) of Directive 2013/36/EU (CRD IV).

The main objective of the revised ITS is to improve the comparability of supervisory approaches across EU Member States (MS) by updating the list of national options and discretions, and aligning the disclosure requirements with recent regulatory changes.

Main Features of the Amending ITS

• Amended Article 5: Clarifies the level of consolidation and reporting scope for both the ECB and national competent authorities (NCAs) within the Single Supervisory Mechanism (SSM).
• Consistent Methodology: The data computation methodology should reflect how supervision is conducted by the CAs and be based on existing data sources.
• Reporting Scope: The ECB reports on significant groups and institutions, while NCAs report on less significant ones.
• Reference Date and Deadline: The reference date, year-end data, and remittance date remain unchanged at 31 July.
• Template Updates: The existing templates are maintained with limited changes. A new redesigned template for options and discretions (Annex II) is introduced.
• New Annex V: Instructions to fill in the templates are now included in a new Annex V, developed through a bottom-up approach to enhance the quality and comparability of the information.

Content Overview

Rules and Guidance (Annex I)

• The model approval section now includes information on market and counterparty credit risk.
• The purpose is to provide a comprehensive framework for supervisory disclosure.

Options and Discretions (Annex II)

• The revised Annex II includes options and discretions from the LCR Delegated Act.
• It is split into three parts:
  • Transitional or permanent options and discretions.
  • Remuneration-related options and discretions.
• The differentiation between credit institutions and investment firms is emphasized.
• Transparency is enhanced by clarifying the scope of the powers of the CAs.

SREP (Annex III)

• The current template is based on the former CEBS Guidelines on SREP.
• The EBA's new Guidelines on SREP are incorporated, introducing the Internal Liquidity Adequacy Assessment Process (ILAAP).

Aggregate Statistical Data (Annex IV)

• The approach shifts from the 'Host Approach' to the 'Consolidated Approach', in line with the existing reporting framework.
• Part 1 of Annex IV, previously titled 'Data on national financial sector', is now 'Consolidated Data per Competent Authority'.
• Minor amendments are made to Parts 1, 2, 4, and 5.
• Corrections are made to the formula cells in the statistical data to address errors identified during application.

Tentative Timeline

Key Information

• The legal basis of the ITS remains unchanged, based on Article 143 of CRD IV.
• The revised ITS aims to enhance transparency and comparability by focusing on options and discretions with a higher impact.
• The original ITS, published in 2014, is being updated to reflect new regulations, including the LCR Delegated Act and EBA Guidelines on SREP.
• The SSM's establishment has influenced the split of responsibilities between the ECB and NCAs.
• The new Annex V provides legally binding instructions to improve the quality and consistency of the data submitted.

Main Views

• The revision is driven by the need for a more transparent and comparable supervisory framework across the EU.
• The focus on options and discretions aims to streamline future discussions and ensure uniformity in supervisory practices.
• The shift to a consolidated approach is intended to reduce the administrative burden on CAs while improving data quality and consistency.
• The inclusion of the ILAAP in the SREP template reflects the evolving nature of prudential supervision in the EU.