Featured Product

    EBA Drafts Standards on Pillar3 Disclosure and Reporting Framework 3.0

    June 24, 2020

    EBA published the implementing technical standards on Pillar 3 disclosures, in addition to the implementing technical standards on supervisory reporting as part of the reporting framework 3.0. The implementing standards on public disclosures implement regulatory changes introduced by the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876) and aligns the disclosure framework in EU with Basel Pillar 3 standards. The draft implementing technical standards on supervisory reporting reflect the changes brought in by CRR2 and the Prudential Backstop Regulation. Both technical standards have been released in the context of EBA Roadmap on the Risk Reduction Package on disclosures and on supervisory reporting. The first disclosure and reporting reference dates under these standards will be June 30, 2021.

    Draft Implementing Technical Standards on Public Disclosures

    The Capital Requirements Regulation (CRR) mandates EBA to develop draft implementing technical standards specifying uniform disclosure formats and the associated instructions, in accordance with which the disclosures required under Titles II and III of Part Eight of the CRR shall be made. Following this mandate, EBA has updated its strategy regarding the policy on institutions’ Pillar 3 disclosures. The key goals of the strategy and the new technical standards are to:

    • Optimize the Pillar 3 policy framework to provide a single comprehensive package that brings together all previous pieces of regulation and incorporates all prudential disclosuresthus facilitating implementation by institutions
    • Promote market discipline by increasing the consistency and comparability of the information disclosed by institutions
    • Facilitate access to users of information to institutions’ key prudential data by introducing the new key metrics templates
    • Foster ease of implementation for institutions by facilitating their access to, and understanding of, all the disclosure templates and tables
    • Increase the efficiency of disclosures by institutions and reduce costs via technology, through the integration of quantitative disclosure data and supervisory reporting

    Draft Implementing Technical Standards on Supervisory Reporting

    The standards on supervisory reporting cover new reporting requirements on counterparty credit risk and net stable funding ratio, non-performing exposures' minimum coverage, and changes to different areas of reporting, including own funds, credit risk, large exposures, leverage ratio, FINREP, and global systemically important institution (G-SII) indicators. The technical standards also include several proportionality measures, including simplified NSFR reporting for small and non-complex institutions. The standards are a part of the EBA reporting framework 3.0. The draft technical standards will be submitted to EC for endorsement before being published in the Official Journal of the European Union. EBA will also develop data point model (DPM), XBRL taxonomy, and validation rules based on the final draft technical standards. The first reference date for the application of these technical standards is expected to be June 30, 2021. The expected implementation period for the proposed changes is one year.

    In 2019, two amendments to the Capital Requirements Regulation (CRR) affected supervisory reporting. One was the finalization of CRR2 (amending Regulation 2019/876), which implements a number key measures such as liquidity, leverage, and large exposures, and the other was the final Backstop Regulation (amending Regulation 2019/630), which sets minimum loss coverage for future non-performing exposures. A number of reporting modules had to be revised as a result of these amendments. The technical standards on supervisory reporting are designed to replace the Implementing Regulation No 680/2014 and have been used as an opportunity to improve consistency between reporting and disclosure requirements.

     

    Related Links

    Keywords: Europe, EU, Banking, Pillar 3, Disclosures, Reporting, CRR2, Basel, Own Funds, Credit Risk, NSFR, Proportionality, FINREP, Framework 3.0, Large Exposures, Implementing Technical Standards, EBA

    Featured Experts
    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153