EBA published the final guidelines on disclosure requirements of IFRS 9 or analogous expected credit losses (ECLs) transitional arrangements. The guidelines specify a uniform disclosure template that institutions shall use when disclosing the information on own funds and capital and leverage ratios, with and without the application of transitional arrangements for IFRS 9 or ECLs. These guidelines apply from March 20, 2018, until the end of the transitional period referred to in paragraph 6 of Article 473a of the Capital Requirements Regulation (CRR).
Following the application of IFRS 9 as of January 01, 2018, institutions will be allowed to phase-in the impact on capital and leverage ratios of the impairment requirements resulting from the implementation of the new accounting standard. Institutions that decide to apply the IFRS 9 or analogous ECLs transitional arrangements are required to publicly disclose their own funds, capital, and leverage ratios, both with and without the application of these arrangements to enable users of this information to determine the impact of such arrangements. To ensure consistency of the disclosure of these parameters, it is crucial that a uniform format is used. The guidelines specify the uniform disclosure format that institutions shall use for this purpose. The guidelines also take into account the developments on disclosure at international level, namely the standards on Pillar 3 disclosure requirements, issued by BCBS on March 29, 2017, which foster comparability of capital metrics with non-EU international active banks.
Effective Date: March 20, 2018
Keywords: Europe, EU, Banking, CRR, IFRS 9, Transitional Arrangements, ECL, EBA
Previous ArticleECB Published Third Issue of the Macroprudential Bulletin
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
PRA published a statement to insurers that clarifies the approach to application of the matching adjustment during COVID-19 crisis.
EBA published a report on the implementation of selected COVID-19 policies within the prudential framework for banking sector.
EC launched a consultation to revise the network and information systems (NIS) Directive (2016/1148), which was adopted in July 2016 and is the first horizontal internal market instrument aimed at improving the resilience of the EU against cybersecurity risks.
PRA published a statement that outlines its view on the implications of LIBOR transition for contracts in scope of the “Contractual Recognition of Bail-In” and “Stay in Resolution” parts of the PRA Rulebook.
PRA published the policy statement PS15/20 to reflect additional resilience associated with higher macro-prudential buffers in a standard risk environment with a reduction in Pillar 2A capital requirements.
BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions.
FCA announced proposals that would provide continued support for certain consumer credit products to users, who are facing a financial impact because of the exceptional circumstances arising from the COVID-19 pandemic.
ACPR published a draft version of taxonomy RAN 1.4.0_PWD1, along with the related documentation, for Solvency II reporting.
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).