EBA Updates Guidelines on Reporting of Funding Plans of Banks
EBA updated the guidelines on harmonized definitions and templates for the reporting of funding plans of credit institutions. The changes include additional details of forecasted market-based funding, alignment to FINREP reporting, and additional proportionality revisions for small and non-complex credit institutions. This update is the result of experience gained through the EBA assessment of funding plans of banks in the recent years as well as the questions raised via the EBA Single Rulebook Question and Answer tool. The first reporting reference date will be December 31, 2020. The guidelines will be part of the version 2.10 reporting framework release and EBA will publish the related technical package in early 2020.
Credit institutions should report their funding plans in accordance with the harmonized instructions and templates referred to in Annexes I and II to the guidelines. EBA consulted on the updated guidelines from March to May 2019. Seven responses were received, of which six were published on the EBA website. The introduced changes will provide deeper insights into the funding plans of banks and will increase efficiency, facilitate implementation, and reduce reporting costs. The new detailed breakdown of the forecasted market-based funding according to seniority will allow monitoring funding structures and, in particular, the need of issuing minimum requirement for own funds and eligible liabilities (MREL) eligible instruments and of replacing maturing central bank funding support, which are expected to be the key drivers for the funding needs of credit institutions.
The new template on the forecast of statement of profit or loss will allow the monitoring of trends over time in firms’ profitability and their impact on funding. The updated guidelines include detailed instructions and are fully aligned with definitions and breakdowns used in FINREP reporting to increase comparability, facilitate the data production process for credit institutions, and deliver better data quality. The guidelines also introduce some simplifications for small and non-complex institutions to enhance proportionality and reduce reporting costs.
Related Links
Keywords: Europe, EU, Banking, Reporting, FINREP, Single Rulebook, Funding Plans, MREL, Proportionality, CRR/CRD, EBA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
Bundesbank Updates Validation Rules for AnaCredit ReportingRelated Articles
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.
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.
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.
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.
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.
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.
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.
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.
SRB Chair Outlines Work Priorities for 2021
The SRB Chair Elke König published an article setting out work priorities for 2021.
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.
