EBA launched a consultation on the revised implementing technical standards, or ITS, on supervisory reporting. The consultation proposes changes to different areas of reporting, including own funds, credit risk, counterparty credit risk, large exposures, leverage ratio, net stable funding ratio, and FINREP. The deadline for the submission of comments is January 16, 2020. EBA expects to submit the revised draft technical standards to EC in June 2020. The application of the revised requirements will be in June 2021, with the first reporting reference date as of June 30, 2021. During the Summer of 2020, EBA will publish draft data point model (DPM) on the proposed changes to supervisory reporting.
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 to be in line with these amendments. This review of the reporting framework is designed to replace the Implementing Regulation (EU) No 680/2014 and has been used as an opportunity to improve the consistency between reporting and disclosure requirements. These proposals would be part of the EBA reporting framework 3.0.
This consultation paper is the first one of the deliverables that will be presented in a forthcoming roadmap, which describes the EBA strategy to implement CRR2, Capital Requirements Directive (CRD5), Bank Recovery and Resolution Directive (BRRD2), and the Interchange Fee Regulation mandates in the reporting framework. The EBA roadmap will be published in the fourth quarter of 2019.
Comment Due Date: January 16, 2020
Keywords: Europe, EU, Banking, Implementing Technical Standards, Own Funds, Credit Risk, Large Exposures, NSFR, FINREP, CRR2, Disclosures, Framework 3.0, Reporting, EBA
BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.
BoE updated the known issues document for the statistical reporting Forms AS and FV.
FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.
SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.
BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.
OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.
EBA updated the report on the implementation of selected COVID-19 policies.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.