EC Amends Implementing Standards on Supervisory Reporting Under CRR
EC published Regulation 2020/429 that amends the Regulation 680/2014, which sets out implementing technical standards on supervisory reporting of institutions under the Capital Requirements Regulation or CRR (575/2013). The key amendments in Regulation 2020/429 relate to reporting on securitization positions, IFRS 16 on leases, non-performing exposures, and liquidity. This Regulation is based on the draft implementing technical standards submitted by EBA to EC. Regulation 2020/429 shall enter into force on the day following that of its publication in the Official Journal of the European Union.
Regulation 2017/2402 had set up a new framework for securitization, including a specific framework for simple, transparent, and standardized (STS) securitizations. It established preferential treatment for STS securitizations and certain micro, small, and medium-size enterprise (SME) synthetic securitizations. Regulation 2017/2042 also set out a framework for a more risk-sensitive regulatory treatment of exposures to securitizations. Regulation 2020/429 is now amending Regulation 680/2014 to accommodate the reporting on securitization positions to this new securitization framework. The new EU securitization framework became fully applicable on January 01, 2020 after the expiration of transitional provisions. Therefore, the revised reporting requirements on own funds and own funds requirements set out in Regulation 2020/429 shall apply from March 30, 2020. The revised reporting requirements set out in Annexes III to V of Regulation 2020/429 shall apply from June 01, 2020. Additional amendments to Regulation 680/2014 include the following:
- Regulation 1126/2008 was amended by Regulation 2017/1986 to bring it in line with the IFRS 16 on leases and Regulation 680/2014 is now being amended to reflect those amendments.
- Regulation 2020/429 is revising the reporting requirements for nonperforming exposures with the aim to strengthen the ability of competent authorities to assess and monitor non-performing exposures by collecting more granular information on those exposures on a recurring basis and to close identified data gaps.
- Regulation 680/2014 is being amended to reflect, in the reporting framework, amendments of the liquidity coverage requirements for credit institutions. The provisions of Regulation 2020/429 concerning liquidity reporting shall apply from April 01, 2020.
- Templates and instructions of Regulation 680/2014 have been reviewed to reassess the convenience and appropriateness of the memo items included in the templates and instructions during the early years of implementation of the regulation as well as to correct typos, erroneous references, and formatting inconsistencies that were discovered in the course of its application.
Related Links
Effective Date: March 31, 2020
Keywords: Europe, EU, Banking, Securities, Securitization, Reporting, CRR, NPE, STS Securitization, Regulation 2020/429, Regulation 680/2014, Basel, IFRS 16, Leases, Liquidity Risk, EC
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
ESMA on Availability and Use of Credit Rating Information and DataRelated Articles
EC Adopts Financial Reporting Changes Arising from Benchmark Reforms
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA Issues Erratum for Technical Package on Reporting Framework 3.0
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA Publishes Risk Dashboard for Third Quarter of 2020
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB Analysis Shows Privacy as Biggest Concern in Use of Digital Euro
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB Finalizes Guide on Supervisory Approach to Bank Consolidation
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
SRB Chair Outlines Work Priorities for 2021
The SRB Chair Elke König published an article setting out work priorities for 2021.
FDIC Selects Companies to Compete in Final Phase of Tech Sprint
FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.