Featured Product

    EBA Updates Guides on Risk and Financial Soundness Indicators

    April 20, 2020

    EBA published a revised methodological guide on how to compile risk indicators and detailed risk analysis tools, along with an updated a guide on how to report the IMF-Financial Soundness Indicators (FSIs). EBA also published a list of risk indicators, a detailed risk analysis tool, and the IMF-FSIs mapping to the data from technical standards on supervisory reporting. These updates are mainly driven by the recently published 2019 IMF-FSIs Guide and by the review of the EBA reporting framework, which entails, among others, changes in securitization information and in non-performing and forborne exposures.

    The methodological guide on risk indicators describes how the indicators are computed in EBA publications, thus allowing competent authorities and users of EBA data to interpret key bank figures and to have a consistent approach in their risk assessments. In addition, it provides information on indicators’ concepts, data sources, and computation techniques, along with a clarity on methodological issues that may assist in their accurate interpretation and use. The guide also enables other competent authorities to compute indicators following the same methodology and thus compare, in a consistent manner, indicators for different samples of banks as well as for the EU aggregates. In the guide, each risk indicator has been allocated either to one of the nine categories, depending on the type of risk addressed (liquidity, funding, asset quality, profitability, concentration, solvency, operational, market, and sovereign risks) or to the dedicated category for small and medium enterprise monitoring.

    The IMF-FSIs guide provides a mapping of the IMF-FSIs to the implementing technical standards on supervisory reporting, ensuring a harmonized methodology in reporting. It aims at providing guidance on how to compute FSIs for deposit takers, using the already available statistical inputs, derived from the EBA technical standards on supervisory reporting. FSIs provide insight into the financial health and soundness of countries’ financial institutions as well as corporate and household sectors, thus supporting the economic and financial stability analysis.

     

    Related Links

    Keywords: Europe, EU, Banking, Risk Indicators, Financial Soundness Indicators, Reporting, Risk Analysis Tool, Statistics, EBA

    Featured Experts
    Related Articles
    News

    EC Adopts Financial Reporting Changes Arising from Benchmark Reforms

    EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.

    January 14, 2021 WebPage Regulatory News
    News

    BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk

    BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.

    January 14, 2021 WebPage Regulatory News
    News

    HMT Updates List of Post-Brexit Equivalence Decisions in UK

    HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.

    January 14, 2021 WebPage Regulatory News
    News

    EBA Issues Erratum for Technical Package on Reporting Framework 3.0

    EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.

    January 14, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets

    APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.

    January 14, 2021 WebPage Regulatory News
    News

    EBA Publishes Risk Dashboard for Third Quarter of 2020

    EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.

    January 13, 2021 WebPage Regulatory News
    News

    ECB Analysis Shows Privacy as Biggest Concern in Use of Digital Euro

    ECB concluded the public consultation on the introduction of a digital euro in EU.

    January 13, 2021 WebPage Regulatory News
    News

    ECB Finalizes Guide on Supervisory Approach to Bank Consolidation

    ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.

    January 12, 2021 WebPage Regulatory News
    News

    SRB Chair Outlines Work Priorities for 2021

    The SRB Chair Elke König published an article setting out work priorities for 2021.

    January 11, 2021 WebPage Regulatory News
    News

    FDIC Selects Companies to Compete in Final Phase of Tech Sprint

    FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.

    January 11, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6417