General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
September 04, 2017

EC published the Delegated Regulation that supplements the Capital Requirements Regulation (CRR or Regulation (EU) No 575/2013) on regulatory technical standards for disclosure of encumbered and unencumbered assets. Annexes containing templates and instructions for disclosure were also published. The Delegated Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Article 1 of this regulation states that institutions shall disclose:

The amount of encumbered and unencumbered assets under the applicable accounting framework by asset type

Information on collateral received by asset type

The liabilities associated with encumbered assets and collateral received

Narrative information relating to the impact of their business model on their level of encumbrance and the importance of encumbrance in their business model

 

Additional disclosure requirements for certain institutions have been stated in Article 2, which shall apply one year from the entry into force of this regulation. This regulation is based on the draft regulatory technical standards submitted by EBA to the EC. The final standards consider the outcome of the EBA consultation that was published on April 25, 2016 and closed on July 25, 2016. CRR (Article 443) requires EBA to develop regulatory technical standards to specify the disclosure of balance sheet value per exposure class broken down by asset quality and the total amount of the balance sheet value that is unencumbered. EBA considers that, in the EU, disclosure on encumbrances is vitally important as it allows market participants to better understand and analyze the liquidity and solvency profiles of institutions and compare these profiles across member states.

 

Related Links

Delegated Regulation (PDF)

Templates and Instructions (PDF)

CRR (PDF)

Keywords: Europe, EU, Banking, Asset Encumbrance, Disclosures, Regulatory Technical Standards, CRR, EC

Related Insights
News

EBA Finalizes Guidelines on the STS Criteria in Securitization

EBA published the final guidelines that provide a harmonized interpretation of the criteria for a securitization to be eligible as simple, transparent, and standardized (STS) on a cross-sectoral basis throughout EU.

December 12, 2018 WebPage Regulatory News
News

OSFI Sets Domestic Stability Buffer for D-SIBs at 1.75%

OSFI set the level for the Domestic Stability Buffer at 1.75% of total risk-weighted assets, as calculated under the Capital Adequacy Requirements (CAR) Guideline.

December 12, 2018 WebPage Regulatory News
News

FSI Publishes Paper on Proportionality in Insurance Solvency Rules

FSI published a paper on proportionality in the application of insurance solvency requirements.

December 11, 2018 WebPage Regulatory News
News

BCBS Updates Framework for Pillar 3 Disclosure Requirements

BCBS published the updated framework for Pillar 3 disclosure requirements.

December 11, 2018 WebPage Regulatory News
News

EBA Issues Revised List of Validation Rules for Reporting

EBA revised the list of validation rules in its implementing technical standards on supervisory reporting.

December 11, 2018 WebPage Regulatory News
News

IMF Reports Assess the Stability of Financial System in Brazil

IMF published a report on the results of the Financial System Stability Assessment (FSSA) on Brazil.

December 11, 2018 WebPage Regulatory News
News

FED Governor Examines Pros of Imposing Capital Buffers on Large Banks

At the Peterson Institute for International Economics in Washington D.C., the FED Governor Lael Brainard summarized the financial stability outlook, highlighted areas where financial imbalances seem to be building, and touched on the related policy implications.

December 07, 2018 WebPage Regulatory News
News

US Agencies Propose Rule on Appraisals for Real Estate Transactions

US Agencies (FDIC, FED, and OCC) proposed a rule to increase the threshold level at or below which appraisals would not be required for the residential real estate transactions from USD 250,000 to USD 400,000. Comments will be accepted for 60 days from publication in the Federal Register.

December 07, 2018 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for December 2018

This week one answer was published as part of the Single Rulebook Questions and Answers (Q&A).

December 07, 2018 WebPage Regulatory News
News

FED Updates Reporting Form and Instructions for FR Y-14Q

FED published the updated reporting form FR Y-14Q for Capital Assessment and Stress Testing, along with the associated instructions.

December 06, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2325