The European Central Bank (ECB) is taking the next step in the project to develop the integrated reporting framework or IReF. Following an industry-wide consultation, ECB is now launching the design phase of the project, which is expected to go live in 2027. This timeframe will enable reporting agents and the European System of Central Banks (ESCB) to undertake the necessary technical work. One of the next steps in the project will be to draft an ECB regulation, which is expected to be adopted in 2024. In parallel, the ESCB will continue cooperating with the European Banking Authority, the European Commission, and the Single Resolution Board to harmonize the reporting of all (statistical, prudential, and resolution) data that banks have to provide to the European authorities. Post an industry consultation, ECB also published a report on the cost-benefit assessment on the integrated reporting framework.
The integrated reporting framework will ensure a common understanding of the statistical terms and standardize the information that banks are required to provide to their respective central banks. This harmonized statistical reporting system is intended to make it easier for banks to report statistical data to the ESCB and to reduce their reporting burden by leveraging digitalization and state-of-the-art production organization; the system will also facilitate policymaker analysis and data comparison. As part of the consultation, banks were asked to assess the costs and benefits of the system and the results show that nearly two-third of the banks believed that the benefits of this would outweigh the costs. The integrated reporting framework seeks to integrate the existing ESCB statistical data requirements for banks, as far as possible, into a unique and standardized reporting framework that is applicable across the euro area. In its initial phase, the integrated reporting framework is focusing primarily on the ECB statistical datasets related to banks; thus, it will cover the requirements of ECB regulations on balance sheet items (BSI) and interest rates (MIR) of monetary financial institutions statistics, the sectoral module of Securities Holdings Statistics (SHS-S), and granular credit and credit risk data (AnaCredit). In respect of SHS-S, the framework will also cover requirements for banks in their role as custodians. The integration of the group module of the SHS will be considered in a second step, while other ECB statistics that do not directly relate to banks’ balance sheet assets and liabilities, such as ECB payments or money market statistics, are not currently covered by the integrated reporting framework.
The integrated reporting framework also envisages the integration of reporting obligations on banks’ own positions and transactions arising in the context of statistics on balance of payments (b.o.p.), international investment positions (i.i.p.), financial accounts and securities issued. Other requirements arising from the collection frameworks of international organizations (for example, BIS Locational Banking Statistics or IMF Standardized Report Forms) are also considered. The granularity of the reporting framework scheme is expected to cover a large share of the existing statistics collected by national central banks that are outside the scope of ECB regulations. Nevertheless, the national central banks may decide to preserve country-specific requirements, for example,. to comply with national legal obligations (such as activities related to anti-money laundering or government support). Such requirements will not be covered under the integrated reporting framework, but will continue to be legislated at the national level. However, these requirements will ideally be modeled and described from a technical and methodological perspective in full consistency with the integrated reporting scheme through the development of an integrated reporting framework extended technical layer. In this way, overlapping requirements across two or more countries will be described in a uniformly in consistency with the integrated reporting framework requirements.
Keywords: Europe, EU, Banking, Guidance, ESG, Basel, Reporting, AnaCredit, SHS, Statistical Reporting, Integrated Reporting Framework, Credit Risk, BSI, ESCB, Banking Supervision, IReF, ECB
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