EBA Launches Transparency Exercise for Banks in EU
EBA launched the seventh annual transparency exercise for banks in EU. The exercise is aimed at providing market participants with updated information on the financial conditions of EU banks as of June 2020, thus assessing the preliminary impact of the COVID-19 crisis on the sector. EBA plans to publish results of this exercise, along with the Risk Assessment Report, at the beginning of December.
This exercise will complement the information provided through the Spring transparency exercise of June 08, 2020, by disclosing data with reference date as of March and June 2020, thus shedding light on the preliminary impact of the ongoing crisis. EBA will release about one million data points, on average more than 7,000 data points for about 130 participating banks from 27 countries, including UK. The data will cover capital positions, financial assets, financial liabilities, risk exposure amounts, sovereign exposures, and asset quality of banks. The exercise will also include data on loans and advances, subject to legislative and non-legislative moratoria, following the EBA guidelines on reporting and disclosure related to COVID-19 measures. The transparency exercise complements banks' own Pillar 3 disclosures, as laid down in the EU Capital Requirements Directive. Following postponement of the EU-wide stress test exercise due to pandemic, EBA had decided on two transparency exercises this year, one in late spring (already released) and one in late autumn (the current one).
Related Links
Keywords: Europe, EU, Banking, Risk Assessment Report, COVID-19, Transparency Exercise, Data Collection, Reporting, EBA
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.
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
US Agencies Publish Technical Corrections to Volcker Rule AmendmentsRelated 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.
