EC published Regulation 2021/637 that lays down implementing technical standards for public disclosures of certain information, as referred to in Titles II and III of Part Eight of the Capital Requirements Regulation or CRR (575/2013). Regulation 2021/637 lays down a consistent and complete Pillar 3 disclosure framework to implement the amendments introduced in CRR2 (2019/876). Annexes to this final regulation present disclosure templates and instructions. Regulation 2021/637 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union and shall apply from June 28, 2021.
Regulation 2021/637 repeals Regulations 1423/2013, 2015/1555, 2016/200, and 2017/2295, which specify uniform formats, templates, and tables for own funds, the countercyclical capital buffers, the leverage ratio, and asset encumbrance, respectively. The Regulation 2021/637 stipulates that Institutions shall provide information on disclosure reference date and reference period, reporting currency, name, and legal entity identifier (LEI) of the disclosing institution; the accounting standard used; and the scope of consolidation. The implementing standards regulation covers templates for disclosure of metrics related to own funds requirement, countercyclical capital buffers, liquidity requirements, standardized and internal ratings-based approaches to credit risk, specialized lending and equity exposure under the simple risk-weight approach, exposures to securitization positions, operational risk, and the use of the standardized approach and of the internal models for market risk. The regulation also lays down disclosure standards, related templates, and instructions to implement certain other amendments introduced in CRR2, which include:
- A new calibrated leverage ratio and the leverage ratio buffer for global systemically important institutions
- The standardized approaches for counterparty credit risk, with a Standardized Approach for Counterparty Credit Risk (SA-CCR) and a Simplified SA-CCR for institutions that meet the predefined eligibility criteria.
- Certain disclosure requirements for net stable funding ratio and performing, non-performing, and forborne exposures, including the disclosure of information on collaterals and financial guarantees received
- Certain remuneration-related disclosure requirements, to ensure that remuneration policies and practices for categories of material risk-takers are consistent with effective risk management
In addition, EU published, in the Official Journal of the European Union, a corrigendum to Regulation 2021/451 that lays down implementing technical standards for the application of CRR with regard to supervisory reporting of institutions. The corrigendum concerns changes to the reporting template for the net stable funding ratio. Regulation 2021/451 repealed the Implementing Regulation 680/2014 on supervisory reporting.
Effective Date: May 11, 2021
Keywords: Europe, EU, Banking, Pillar 3, Disclosures, Reporting, Basel, Implementing Technical Standards, Regulatory Capital, NSFR, CRR, EC
Previous ArticleRBNZ to Lead Implementation of Deposit Takers Act
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
The China Banking and Insurance Regulatory Commission (CBIRC) published the administrative measures for internal control of wealth management companies, which come into force on the day of promulgation.
The Prudential Regulation Authority (PRA) proposed its approach to policy-making as it takes on wider rulemaking responsibilities under the Financial Services and Markets Bill.
The European Central Bank (ECB) published its opinion on the proposal for a regulation on harmonized rules on fair access to and use of data (Data Act).