EBA announced that it will release the bank-by-bank data of the Spring 2020 EU-wide transparency exercise on Monday, June 8. In 2020, following the postponement of the EU-wide stress test exercise, EBA is going to release two Transparency exercises, one in late Spring and one in late Autumn, that will inform the public on the conditions of the EU banking sector at the start of the COVID-19 crisis and the impact of the crisis in the first half of 2020. Both the Spring and the Autumn exercises are going to be exclusively based on supervisory reporting data and do not entail additional reporting burden for banks.
EBA launched this additional Spring 2020 EU-wide transparency exercise to provide market participants with updated information on the financial conditions of EU banks as of December 31, 2019, prior to the start of the COVID-19 pandemic. Through this transparency exercise, similar to the annual transparency exercises EBA has performed in the past, EBA will release about one million data points, on average more than 7,500 for about 125 participating banks. The data, with reference date as of December 2019, will cover banks’ capital positions, financial assets, financial liabilities, risk exposure amounts, sovereign exposures, and asset quality. EBA considers that the provision to market participants of continuous information on banks’ exposures and asset quality is crucial, particularly in moments of increased uncertainty.
EBA has been conducting transparency exercises at the EU-wide level on an annual basis since 2011. The transparency exercise is part of the ongoing efforts to foster transparency and market discipline in the EU financial market. This exercise complements the own Pillar 3 disclosures of banks, as laid down in the EU Capital Requirements Directive. Along with the dataset, EBA also provides a wide range of interactive tools that allow users to compare and to visualize data across time and at a country and a bank-by-bank level.
Keywords: Europe, EU, Banking, COVID-19, Transparency, Spring 2020 Transparency Exercise, Basel, Reporting, EBA
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