EBA Amends Supervisory Reporting Standards for FINREP

These final draft implementing technical standards amend the EC's Implementing Regulation (EU) No 680/2014 on supervisory reporting with regard to FINREP. These standards aim to improve the reporting requirements on non-performing exposures and forbearance to strengthen supervisors' ability to assess and monitor these exposures. The amended standards allow more granular information to be collected on these exposures on a recurring basis, thus closing the identified data gaps. To ensure proportionality, only institutions having a nonperforming loan (NPL) ratio equal to or greater than 5% are required to report more granular information. 

Other changes concern the reporting requirements on profit or loss items, in particular additional details on operating and administrative expenses to allow supervisors to make an in-depth analysis on reporting institutions‘ cost structure and to monitor the impact of reporting institutions‘ remuneration policies. These changes apply to both IFRS and N-GAAP reporters. Finally, for IFRS reporters, minor changes were brought about by the implementation of IFRS 16, as this new standard has replace the International Accounting Standards (IAS) 17 since January 01, 2019. Under IFRS 16, the main change is to the accounting of leases by the lessee: the differentiation between finance and operating leases has been removed and assets and liabilities are, with limited exceptions, recognized in respect of all leases. Considering the revised accounting rules, some minor changes to FINREP are made to obtain a complete view of the main impacts on lessees’ financial situation and profit or loss.

Related Links

• Press Release
• Implementing Standards (PDF)
• Annexes (ZIP)

Effective Date: June 01, 2020

Keywords: Europe, EU, Banking, Reporting, FINREP, NPE, NPLs, IFRS 16, Leases Standard, Implementing Technical Standards, Proportionality, EBA