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

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Karen Moss
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives
Previous Article
ESMA on Availability and Use of Credit Rating Information and DataRelated Articles
PRA Finalizes Supervisory Approach for Non-Systemic Banks in UK
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
EBA Finalizes Standards on Methods of Prudential Consolidation
EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).
EBA Updates List of Other Systemically Important Institutions in EU
EBA updated the list of other systemically important institutions (O-SIIs) in EU.
BCBS Report Concludes Basel Risk Categories Can Capture Climate Risks
BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.
UK Authorities Welcome FSB Review of their Remuneration Regime
UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.
PRA and FCA Letter on Addressing Risks from Use of Deposit Aggregators
PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.
MFSA to Amend Banking Act and Rules in Coming Months to Transpose CRD5
MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.
EC Delegated Regulation on Specialized Lending Exposures Under CRR
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI Proposes to Enhance Assurance Expectations for Basel Returns
OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.
ECB Issues Results of Benchmarking Analysis of Recovery Plans of Banks
ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.