ECB is allowing significant institutions to delay the submission of supervisory data under the technical standards on supervisory reporting and benchmarking of internal approaches. The allowed delay is one month, for remittance dates between March 2020 and May 2020. In addition, ECB is postponing by one month the remittance dates for its most recurring requests falling between March 2020 and May 2020. The individual Joint Supervisory Teams will communicate an updated remittance calendar to the banks they cover. ECB also published the frequently asked questions (FAQs) on supervisory measures of ECB in response to COVID-19 outbreak.
The FAQs provide clarifications on the relief measures announced so far, including those regarding asset quality deterioration and non-performing loans (NPLs), operational aspects of supervision, and capital and liquidity requirements. With respect to reporting, ECB emphasized that the liquidity coverage ratio (LCR) and Additional Liquidity Monitoring Metrics (ALMM) templates have been identified as a priority and should be reported as planned. However, the submission of the information on funding plans can be delayed by two months.
ECB also expects supervised institutions to apply the EBA harmonized reporting framework version 2.9 with the reference date March 31, 2020, in accordance with the adopted Implementing Act amending Regulation 680/2014. The grace period of one month should also be granted to less significant institutions that are subject to EBA and ECB reporting obligations under the implementing technical standards, the ECB FINREP regulation, and other rules. This flexibility is expected to reduce the operational burden on banks in the coming weeks and months and to enable banks to report with an adequate level of data quality. The measures may be extended or reviewed at a later date in response to further developments with respect to the COVID-19 outbreak.
Keywords: Europe, EU, Banking, COVID-19, Reporting, Deadline Extension, FAQ, Benchmarking, Reporting Framework 2.9, FINREP, Internal Approaches, EBA, ECB
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
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