Featured Product

    EBA Launches Study on Cost of Compliance with Supervisory Reporting

    July 22, 2020

    EBA initiated a study on the institutions' cost of compliance with the supervisory reporting requirements. As part of the study, EBA launched a questionnaire addressed to all European banks. It also called for case studies to collect evidence on reporting costs and for industry views on ways to reduce such costs and make the supervisory reporting more efficient. EBA expects the responses to the questionnaires and the call for case studies in October 2020. EBA also published an explanatory note and documents on introduction to this exercise and the questionnaire. The cost of compliance study focuses on understanding the costs incurred by institutions in relation to supervisory reporting and in relation to the EBA implementing technical standards on supervisory reporting. The findings from this analysis should be formulated in a report and delivered to the EC and the European Parliament in 2021.

    Under the Capital Requirements Regulation, EBA is mandated to measure the costs institutions incur when complying with the reporting requirements set out in its technical standards on supervisory reporting. EBA is also asked to assess whether these reporting costs are proportionate with regard to the benefits delivered for prudential supervision and make recommendations on how to reduce the reporting cost at least for small and non-complex institutions. To fulfill its mandate for this study, EBA will organize the analytical work based on four components:

    • A questionnaire to institutions—EBA aims to collect quantitative and qualitative information on the historical reporting costs and benefits of reporting as well as the evidence-based views on the possible changes to reporting requirements or processes, with the aim of reducing costs and increasing efficiencies. The questionnaire aims to understand the reporting costs, the cost drivers, and the benefits and to identify the reporting challenges. It also looks into the effectiveness of proportionality measures that have been put in place in the past, along with the first ideas on how to make reporting even more efficient and proportionate in the future. This questionnaire aims to collect information about the cost of compliance with reporting requirements on an institution-by-institution level. The answers to the (voluntary) questionnaire should be provided by credit institutions or by relevant third parties on behalf of institutions with an institution-specific focus and institution-specific data in principle.
    • A questionnaire to the users of reporting—A second questionnaire aims to gather understanding of the benefits of standardized supervisory reporting for its various users. The primary addressees of this survey are supervisory authorities across Europe and other potential users of such regulatory reporting. This questionnaire is still being developed and supervisory part of the study will be launched later. The survey on supervisors is expected to be conducted between September 2020 and October 2020.
    • Interviews with selected industry associations and institutions—Based on the results of the questionnaire to institutions, EBA is planning to organize a limited number of focused interviews with a sample of institutions across Europe to gather further understanding of the sources of cost and the potential measures to reduce them. Interviews with selected institutions and associations are expected to be conducted between late September 2020 and October 2020.
    • Case studies—The fourth component of the methodology is fact-finding case studies. EBA encourages interested stakeholders, including individual institutions, associations, software providers, and academics to conduct their own quantitative evidence-based case studies on either reporting costs or the benefits of certain cost-reduction measures or options, or both, and share their results with EBA.

    Following the discussions with various EU-level and national industry trade bodies, EBA has split the questionnaire for institutions into two parts (qualitative and quantitative) with different deadlines for responses, to take due account of the priorities and challenges faced by institutions in the current COVID-19 environment. Responses to the qualitative questions are expected by October 01, 2020, while responses to the quantitative questions as well as the submission of case studies are expected by October 31, 2020.

     

    Related Links

    Keywords: Europe, EU, Banking, COVID-19, Reporting, CRR, Basel, Cost of Compliance, Proportionality, EBA

    Featured Experts
    Related Articles
    News

    HM Treasury Publishes Policy Statement Amending Benchmarks Regulation

    HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.

    October 21, 2020 WebPage Regulatory News
    News

    PRA Consults on Implementation of Certain Provisions of CRD5 and CRR2

    PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule to Reduce Impact of Large Bank Failures

    US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule on Net Stable Funding Ratio Requirements

    US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.

    October 20, 2020 WebPage Regulatory News
    News

    FSB Sets Out Effective Practices for Cyber Incident Recovery

    FSB finalized the toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities.

    October 19, 2020 WebPage Regulatory News
    News

    ECB Publishes Eleventh Issue of the Macroprudential Bulletin

    ECB published eleventh issue of the Macroprudential Bulletin, which provides insight into the ongoing work of ECB in the field of macro-prudential policy.

    October 19, 2020 WebPage Regulatory News
    News

    HM Treasury Seeks Views on Review of Solvency II Regime for Insurers

    HM Treasury issued a call for evidence seeking views to reform the prudential regulatory regime—also known as Solvency II—of the insurance sector in UK.

    October 19, 2020 WebPage Regulatory News
    News

    ESRB Responds to EC Consultation on Review of Solvency II

    ESRB responded to the EC consultation on review of Solvency II regime.

    October 19, 2020 WebPage Regulatory News
    News

    HM Treasury Consults on Phase II of Future Regulatory Framework Review

    HM Treasury launched a consultation on Phase II of the Future Regulatory Framework Review, with the comment period ending on January 19, 2021.

    October 19, 2020 WebPage Regulatory News
    News

    EC Publishes Work Program for 2021

    EC adopted the work program for 2021.

    October 19, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5991