ECB published the results of a comprehensive cost-benefit analysis aimed to assess, in close cooperation with the banking industry, the impact of the Integrated Reporting Framework (IReF) of the European System of Central Banks (ESCB) on all stakeholders. ECB had issued the questionnaire on IReF in June 2018, with all euro area countries, in addition to Romania and Sweden, participating in the survey. Annex 1 of the report presents the national results (including for Romania and Sweden) of the survey. ECB also published a document providing an overview of the IReF.
On expected benefits of the IReF, the banking industry assigned high priority to the harmonization of concepts and methodologies underlying statistical reporting and to having a unique reporting scheme across statistical domains, which reduces overlaps. Regarding challenges in implementing the IReF, respondents considered those related to maintaining parallel systems for the datasets to be integrated into the IReF before the IReF system reaches a steady state and developing new reporting systems or changing existing ones when they have not yet reached the end of their lifecycles. Reporting agents expressed a high degree of support for setting up a reporting system that would enable the collection of supervisory data as part of a broader integrated framework. Respondents also see significant benefits of the IReF's introduction in unlocking the potential of the Banks' Integrated Reporting Dictionary (BIRD) for fulfilling reporting.
The vast majority of reporting agents consider 2024-2027 as being the most realistic period for the implementation of IReF. By 2024, ESCB and the banking industry will further cooperate on the definition of the IReF's technical features, including a detailed reporting scheme and the general governance of the data transmission. Such a timeline would respect lifecycles of the existing IT systems and would ensure enough lead time for all involved stakeholders to implement the requirements. The analysis shows that the banking industry supports an integration of AnaCredit into the IReF in such a way that the granular loan data would be directly used for the compilation of aggregated statistics. The majority of respondents indicated that, for both granular credit data necessary for the compilation of aggregated statistics and security-by-security data on holdings and issuance of ISIN securities, a monthly data transmission within 10-12 working days from the end of the reference period is either feasible or already in line with the national practices.
The idea underpinning the ESCB IReF is to integrate the existing ESCB statistical data requirements for banks into a single framework, thus ensuring integration across countries and data domains. The IReF would consist of an integrated set of reports for banks, aimed in the long run to replace the national reporting templates as far as possible. The IReF also contains a unique set of transformation rules for compiling the derived statistics required by authorities, possibly to be shared with the stakeholders involved.
Keywords: Europe, EU, Banking, Reporting, IReF, Integrated Reporting, BIRD, AnaCredit, ECB
PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).
EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.
EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.
EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.
PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.
MAS published a statement guidance on dividend distribution by banks.
APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.
FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.
EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.
SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.