EBA published a revised methodological guide on how to compile risk indicators and detailed risk analysis tools, along with an updated a guide on how to report the IMF-Financial Soundness Indicators (FSIs). EBA also published a list of risk indicators, a detailed risk analysis tool, and the IMF-FSIs mapping to the data from technical standards on supervisory reporting. These updates are mainly driven by the recently published 2019 IMF-FSIs Guide and by the review of the EBA reporting framework, which entails, among others, changes in securitization information and in non-performing and forborne exposures.
The methodological guide on risk indicators describes how the indicators are computed in EBA publications, thus allowing competent authorities and users of EBA data to interpret key bank figures and to have a consistent approach in their risk assessments. In addition, it provides information on indicators’ concepts, data sources, and computation techniques, along with a clarity on methodological issues that may assist in their accurate interpretation and use. The guide also enables other competent authorities to compute indicators following the same methodology and thus compare, in a consistent manner, indicators for different samples of banks as well as for the EU aggregates. In the guide, each risk indicator has been allocated either to one of the nine categories, depending on the type of risk addressed (liquidity, funding, asset quality, profitability, concentration, solvency, operational, market, and sovereign risks) or to the dedicated category for small and medium enterprise monitoring.
The IMF-FSIs guide provides a mapping of the IMF-FSIs to the implementing technical standards on supervisory reporting, ensuring a harmonized methodology in reporting. It aims at providing guidance on how to compute FSIs for deposit takers, using the already available statistical inputs, derived from the EBA technical standards on supervisory reporting. FSIs provide insight into the financial health and soundness of countries’ financial institutions as well as corporate and household sectors, thus supporting the economic and financial stability analysis.
- Press Release
- Methodological Guide (PDF)
- IMF-FSIs Guide (PDF)
- List of EBA Risk Indicators (XLSX)
- EBA Detailed Risk Analysis Tool (XLSX)
- IMF-FSIs Mapping to Technical Standards Data (XLSX)
Keywords: Europe, EU, Banking, Risk Indicators, Financial Soundness Indicators, Reporting, Risk Analysis Tool, Statistics, EBA
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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