EC Issues Disclosure Standards and Corrigendum on NSFR Reporting
EC published Regulation 2021/637 that lays down implementing technical standards for public disclosures of certain information, as referred to in Titles II and III of Part Eight of the Capital Requirements Regulation or CRR (575/2013). Regulation 2021/637 lays down a consistent and complete Pillar 3 disclosure framework to implement the amendments introduced in CRR2 (2019/876). Annexes to this final regulation present disclosure templates and instructions. Regulation 2021/637 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union and shall apply from June 28, 2021.
Regulation 2021/637 repeals Regulations 1423/2013, 2015/1555, 2016/200, and 2017/2295, which specify uniform formats, templates, and tables for own funds, the countercyclical capital buffers, the leverage ratio, and asset encumbrance, respectively. The Regulation 2021/637 stipulates that Institutions shall provide information on disclosure reference date and reference period, reporting currency, name, and legal entity identifier (LEI) of the disclosing institution; the accounting standard used; and the scope of consolidation. The implementing standards regulation covers templates for disclosure of metrics related to own funds requirement, countercyclical capital buffers, liquidity requirements, standardized and internal ratings-based approaches to credit risk, specialized lending and equity exposure under the simple risk-weight approach, exposures to securitization positions, operational risk, and the use of the standardized approach and of the internal models for market risk. The regulation also lays down disclosure standards, related templates, and instructions to implement certain other amendments introduced in CRR2, which include:
- A new calibrated leverage ratio and the leverage ratio buffer for global systemically important institutions
- The standardized approaches for counterparty credit risk, with a Standardized Approach for Counterparty Credit Risk (SA-CCR) and a Simplified SA-CCR for institutions that meet the predefined eligibility criteria.
- Certain disclosure requirements for net stable funding ratio and performing, non-performing, and forborne exposures, including the disclosure of information on collaterals and financial guarantees received
- Certain remuneration-related disclosure requirements, to ensure that remuneration policies and practices for categories of material risk-takers are consistent with effective risk management
In addition, EU published, in the Official Journal of the European Union, a corrigendum to Regulation 2021/451 that lays down implementing technical standards for the application of CRR with regard to supervisory reporting of institutions. The corrigendum concerns changes to the reporting template for the net stable funding ratio. Regulation 2021/451 repealed the Implementing Regulation 680/2014 on supervisory reporting.
Related Links
Effective Date: May 11, 2021
Keywords: Europe, EU, Banking, Pillar 3, Disclosures, Reporting, Basel, Implementing Technical Standards, Regulatory Capital, NSFR, CRR, EC
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Nick Jessop
Scenario modeling expert; risk management specialist; quantitative financial modeler
Previous Article
RBNZ to Lead Implementation of Deposit Takers ActRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR
The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy
The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
