Featured Product

    EBA to Require Additional Reporting and Disclosures for COVID Measures

    June 02, 2020

    EBA published the guidelines and templates for reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis. EBA is introducing, on a temporary basis, additional reporting for the payment moratoria applied to ease COVID impact, forbearance measures applied in response to COVID-19 to the existing loans, and public guarantees to new lending in response to the COVID-19 pandemic. The first reporting reference date and the disclosure reference date will be June 30, 2020. The reporting guidelines will be part of the version 2.10 reporting framework release that will be published in June 2020.

    The guidelines have been developed to address data gaps associated with the relief measures to ensure an appropriate understanding of institutions’ risk profile and the asset quality on their balance sheets both for supervisors and the wider public. The guidelines cover information that is crucial for understanding the prudential soundness of individual institutions, without impacting their treatment of creditors under moratoria or public guarantees. The information requested here reflects the type of information that senior management in institutions is asking for, and is key to understanding the overall financial stability in EU. The guidelines are built on the existing definitions of the Commission Implementing Regulation No 680/2014 (FINREP). The guidelines cover the following:

    • Reporting requirements to monitor the use of payment moratoria and the evolution of the credit quality of the exposures subject to such moratoria in accordance with the guidelines on moratoria
    • Disclosure requirements for the exposures subject to the payment moratoria in accordance with the guidelines on moratoria
    • Reporting requirements for the new loans subject to specific public guarantees set up to mitigate the effects of the COVID-19 crisis
    • Disclosure requirements for the new loans subject to the specific public guarantees set up to mitigate the effects of COVID-19 crisis
    • Reporting requirements on other forbearance measures applied in response to the COVID-19 crisis 

    To facilitate reporting on the basis of these guidelines, EBA will provide technical package, covering validation rules, the data point model (DPM), and the XBRL taxonomy and will fully integrate the new reporting into the EBA reporting framework. Similar to the implementing technical standards on reporting, the XBRL taxonomy will not be mandatory for reporting institutions and will not be part of the guidelines. To facilitate that additional reporting, and reduce the costs for institutions and competent authorities, EBA will also link the technical release of the new reporting requirements with the existing planned release (as a separate module in 2.10 phase 2). EBA will publish the version 2.10 Phase 2 release in June 2020. The additional reporting and disclosure requirements are expected to be time-limited as they are introduced strictly in the context of the COVID-19 pandemic. These reporting and disclosure templates from EBA consider the need for proportionality in terms of the size and complexity of the institutions, the specificities of the measures introduced in member states, and operational efficiency of institutions in current circumstances. Reporting should be performed on a quarterly basis, with the first reference date of June 30, 2020 and for an expected period of 18 months. Disclosure should be performed semi-annually on June 30 and December 31.

     

    Related Links

    Keywords: Europe, EU, Banking, Basel, Reporting, Disclosures, COVID-19, FINREP, Reporting Framework 2.10, Credit Risk, Loan Moratorium, Guarantee Scheme, EBA

    Featured Experts
    Related Articles
    News

    BIS Quarterly Review Discusses Developments in Fintech and ESG Space

    BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.

    September 20, 2021 WebPage Regulatory News
    News

    BCBS to Consult on Supervisory Practices for Climate Risks by Year-End

    The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards

    September 20, 2021 WebPage Regulatory News
    News

    OCC Identifies Operational Risk Deficiencies in MUFG Union Bank

    The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.

    September 20, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.

    September 17, 2021 WebPage Regulatory News
    News

    ECB to Consider Climate Risks When Reviewing Collateral Framework

    In a response to the questions posed by a member of the European Parliament, the President Christine Lagarde highlighted the commitment of the European Central Bank (ECB) to an ambitious climate-related action plan along with a roadmap, which was published in July 2021.

    September 17, 2021 WebPage Regulatory News
    News

    SRB Provides Update on Approach to Prior Permissions Regime

    The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.

    September 16, 2021 WebPage Regulatory News
    News

    APRA Issues Further Guidance on Application of Securitization Standard

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.

    September 16, 2021 WebPage Regulatory News
    News

    ACPR Publishes Corrective Version of RUBA Taxonomy

    The French Prudential Control and Resolution Authority (ACPR) published the corrective version of the RUBA taxonomy Version 1.0.1, which will come into force from the decree of January 31, 2022.

    September 15, 2021 WebPage Regulatory News
    News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.

    September 15, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7487