Featured Product

    Danièle Nouy of ECB Speaks About Reducing Reporting Burden for Banks

    July 11, 2018

    Danièle Nouy of ECB spoke, at the Ninth ECB Statistics Conference in Frankfurt, about statistics as an indispensable signpost. In addition to discussing the importance of data for banking supervision, she mentioned that ECB is working on alleviating the burden that reporting puts on banks by standardizing, integrating, and harmonizing reporting.

    She examined the uses of data for banks and supervisors while emphasizing that supervisors need high-quality data and rely on them to create risk profiles of banks and analyze liquidity and capital of banks. She mentioned that ECB makes available aggregate data on banks and highlighted that banks still need to improve their data frameworks and that the BCBS principles for effective risk data aggregation and risk reporting (BCBS 239) provide guidance in this area. Next, she discussed the "indisputable burden that reporting puts on banks." ECB tries to alleviate this burden through various initiatives and three relevant actions in this context are to standardize, integrate, and harmonize reporting. For standardization, one goal should be to have unique identifiers for banks and their counterparts. This would help to further consolidate reporting and lighten the burden on banks. The Legal Entity Identifier (LEI) has been a good first step toward this and banks are already benefiting from applying it.

    To integrate and harmonize reporting, European banking supervision will, for instance, set up a database containing all the recurring requests for supervisory data that are addressed to banks under the direct supervision of ECB. This database will allow monitoring of the overall reporting burden on these banks. It will not only allow ECB to provide banks with a preliminary overview of data requests for the year ahead but it will also allow ECB to present its Supervisory Board with an annual dashboard showing all bank-specific and horizontal data requests. This will help in streamlining and harmonizing the data requests and thus simplify reporting for the banks. Additionally, there is also the Banks’ Integrated Reporting Dictionary (BIRD) Initiative. BIRD is a voluntary tool that helps banks to organize their data by providing a common data dictionary and common transformation rules. This makes it much easier for software companies and banks to implement reporting requirements in a uniform manner. This helps banks to report data to the required level of granularity.

    To further improve integration in reporting, she suggested that, from an institutional point of view, it might help to formalize and expand the role of EBA, in the field of supervisory data. EBA could, for instance, integrate supervisory reporting and disclosures under Pillar 3 of the Basel Accords. It could then develop and maintain a relevant hub of bank data collected from regulatory reporting. This would help banks as they would only need to report the respective data once. This would help to set the right incentives for improving data quality and this is one of the insights from the transparency exercises of EBA. It would also help supervisors and market participants because they would have easier access to the data. The United States could serve as a role model in this regard. Finally, she reiterated the importance of data, saying that data are at the heart of banking supervision and data underpin the supervisory judgment, decisions, and actions. 

     

    Related Link: Speech

    Keywords: Europe, EU, Banking, Reporting, BIRD, LEI, Pillar 3, BCBS 239, ECB

    Featured Experts
    Related Articles
    News

    ECB Finalizes Methodology to Assess CCR and A-CVA Risk of Banks

    ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.

    September 18, 2020 WebPage Regulatory News
    News

    EBA Provides Opinion on Definition of Credit Institution in CRR

    EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).

    September 18, 2020 WebPage Regulatory News
    News

    APRA Consults on Alignment of Daily Liquidity Report for Banks

    APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.

    September 17, 2020 WebPage Regulatory News
    News

    FED Releases Scenarios for Second Round of Stress Tests on Banks

    FED released hypothetical scenarios for a second round of stress tests for banks.

    September 17, 2020 WebPage Regulatory News
    News

    PRA Announces Update on Supervisory Benchmarking Portfolio Exercise

    PRA published updates in relation to the 2021 Supervisory Benchmarking Portfolio exercise.

    September 14, 2020 WebPage Regulatory News
    News

    FED Revises and Extends Capital Assessment and Stress Testing Reports

    FED adopted a proposal to extend for three years, with revision, the capital assessments and stress testing reports (FR Y-14A/Q/M; OMB No. 7100-0341).

    September 14, 2020 WebPage Regulatory News
    News

    HKMA Updates Policy Module for Non-Centrally Cleared OTC Derivatives

    HKMA revised the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.

    September 11, 2020 WebPage Regulatory News
    News

    EBA Updates List of Validation Rules for Reporting by Banks

    EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.

    September 10, 2020 WebPage Regulatory News
    News

    EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework

    EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).

    September 10, 2020 WebPage Regulatory News
    News

    NGFS Advocates Environmental Risk Analysis for Financial Sector

    NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.

    September 10, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5803