Featured Product

    EC Adopts Rule on Disclosure of Encumbered and Unencumbered Assets

    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 Articles
    News

    APRA Finalizes Prudential Standard for Credit Risk Management of Banks

    APRA updated the prudential standard on credit risk management requirements (APG 220) for authorized deposit-taking institutions, post a public consultation.

    December 12, 2019 WebPage Regulatory News
    News

    APRA Issues Operational Risk Rules, Consults on Reporting Requirements

    APRA published an updated prudential standard APS 115 that sets out operational risk requirements for authorized deposit-taking institutions in Australia.

    December 11, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on European Benchmarks Regulation in December 2019

    ESMA updated the question and answers (Q&A) document on the European Benchmarks Regulation.

    December 11, 2019 WebPage Regulatory News
    News

    APRA Decides to Keep Countercyclical Capital Buffer for Banks at 0%

    APRA announced its decision to keep the countercyclical capital buffer (CCyB) for authorized deposit-taking institutions on hold at zero percent.

    December 11, 2019 WebPage Regulatory News
    News

    FED Extends Consultation Period for Capital Requirements for Insurers

    FED is extending comment period for the proposed rule establishing risk-based capital requirements for depository institution holding companies that are significantly engaged in insurance activities.

    December 10, 2019 WebPage Regulatory News
    News

    OSFI Sets Domestic Stability Buffer Level at 2.25%

    OSFI has set the Domestic Stability Buffer, or DSB, at 2.25% of total risk-weighted assets, with effect from April 30, 2020.

    December 10, 2019 WebPage Regulatory News
    News

    EBA Issues Revised List of Validation Rules for Reporting by Banks

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

    December 10, 2019 WebPage Regulatory News
    News

    SRB Holds Annual Conference, Reflects on Turning Policy into Action

    SRB published a report on its fourth annual conference that was held on October 10, 2019 in Brussels.

    December 10, 2019 WebPage Regulatory News
    News

    APRA Specifies Capital Treatment of Equity Investments in ABGF

    APRA published a letter to the authorized deposit-taking institutions outlining the regulatory capital treatment of their equity investments in the Australian Business Growth Fund (ABGF).

    December 09, 2019 WebPage Regulatory News
    News

    EBA Updates Guidelines on Reporting of Funding Plans of Banks

    EBA updated the guidelines on harmonized definitions and templates for the reporting of funding plans of credit institutions.

    December 09, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4305