Featured Product

    ECB Aims to Implement Integrated Reporting Framework by 2027

    November 02, 2020

    ECB published a report providing an overview of the integrated reporting framework as well as a cost-benefit assessment questionnaire on the integrated reporting framework for banks in EU. The report states that ECB envisages issuing an integrated reporting framework (IReF) Regulation on statistical data requirements for banks; this regulation would be directly applicable to banks resident in the euro area and would not have to be incorporated into the national collection frameworks. Non-euro area EU countries may decide to adopt the IReF reporting through national legislation in full or in part (such as content related to AnaCredit). The Eurosystem aims to implement the integrated reporting framework in 2024-27, subject to the outcome of the cost-benefit analysis.

    The integrated reporting framework seeks to integrate the existing ESCB statistical data requirements for banks, as far as possible, into a unique and standardized reporting framework applicable across the euro area. In its initial phase, the integrated reporting framework is focusing primarily on ECB statistical datasets related to banks and will, hence, cover the requirements of ECB regulations on balance sheet items (BSI) and interest rates (MIR) of monetary financial institutions, Securities Holdings Statistics (SHS), and AnaCredit. The integrated reporting framework also envisages the integration of reporting obligations on banks’ own positions and transactions arising in the context of statistics on balance of payments, international investment positions, financial accounts, and securities issued. Other requirements arising from the collection frameworks of international organizations (for example, the BIS Locational Banking Statistics or the IMF Standardized Report Forms) are also being considered. To make sufficient progress on reducing the reporting burden in the short term, the ESCB strategy for collecting data from banks envisages launching two parallel intermediate steps without delay:

    • Integrate the data reported for statistical purposes to the ESCB—that is, implement the integrated reporting framework
    • Enhance the integration of resolution and prudential reporting

    Both workstreams must converge as soon as possible. The priority for ensuring this convergence is to develop a common data dictionary and a common data model for the statistical, resolution, and prudential reporting frameworks. A joint committee (comprising representatives from relevant European and national authorities and involving the banking industry in certain tasks) should be set up to steer the integrated reporting framework process along with the parallel integration of resolution and prudential data reporting. A cost-benefit analysis of the impact of the integrated reporting framework has been initiated in close cooperation with banks and other stakeholders. The Eurosystem will next assess the results of the cost-benefit assessment questionnaire and identify the optimal features that would best suit banks and Eurosystem reporting areas, compilers, and users. ECB will publish the results of the cost-benefit assessment questionnaire in 2021 and will begin drafting a regulation on the integrated reporting framework in 2022.

    A public consultation on the draft legal act collecting additional feedback from the interested stakeholders is currently scheduled for 2023. The legal act will then be adopted by the Governing Council. The IReF Regulation will replace the existing regulations on BSI, MIR, SHS, and AnaCredit with respect to the requirements of deposit-taking corporations. The MIR and AnaCredit regulations would thus be repealed, while the BSI and SHS regulations would be recast or amended to exclude deposit-taking corporations from the respective reporting populations.

     

    Related Links

    Keywords: Europe, EU, Banking, Reporting, Integrated Reporting Framework, Statistical Reporting, SHS, AnaCredit, ESCB, SSM, IREF Regulation, ECB

    Featured Experts
    Related Articles
    News

    EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package

    EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.

    February 26, 2021 WebPage Regulatory News
    News

    EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway

    The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.

    February 25, 2021 WebPage Regulatory News
    News

    PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks

    In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.

    February 25, 2021 WebPage Regulatory News
    News

    FSB Sets Out Work Priorities for 2021

    In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.

    February 25, 2021 WebPage Regulatory News
    News

    EU Publishes Corrigendum to Revised Capital Requirements Regulation

    EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).

    February 25, 2021 WebPage Regulatory News
    News

    ESAs Issue Statement on Application of Sustainability Disclosures Rule

    ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).

    February 25, 2021 WebPage Regulatory News
    News

    EC Consults on Crisis Management and Deposit Insurance Frameworks

    EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.

    February 25, 2021 WebPage Regulatory News
    News

    HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs

    HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.

    February 24, 2021 WebPage Regulatory News
    News

    EBA Proposes Standards for Supervisory Cooperation Under IFD

    EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.

    February 24, 2021 WebPage Regulatory News
    News

    BoE Addresses Banks in Scope of First Resolvability Assessment

    BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.

    February 24, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6629