The European Banking Authority (EBA) published the final report on the feasibility study of an integrated reporting system in the European Union. This report is the outcome of over two years of effort and active engagement of both national and European authorities as well as the interaction with financial institutions, professional associations and specialized service providers. This study is part of a broader strategy of the European Commission to improve and modernize EU supervisory reporting while minimizing the aggregate reporting burden for all parties. The report puts forward a long-term vision on how the reporting processes could be streamlined and improved for both institutions and competent authorities and how cooperation among the competent authorities could be enhanced in the area of prudential, resolution, and supervisory reporting.
The report identifies the feasible immediate next steps to move toward integration and the areas that require further investigation. EBA concludes that there is wide agreement that a common data dictionary for prudential, statistical, and resolution data collection is a key building block of an integrated reporting system. The feasibility study covers potential approaches and challenges that need to be overcome to reach the desired integration. There is support to further explore the possibility to increase the level of granularity for the reporting requirements, where feasible, in the context of an integrated reporting system, as a way to further increase the efficiency of the reporting process. The creation of a Central Data Collection Point (CDCP) is considered potentially useful by both authorities and institutions. While a common data dictionary can significantly foster integration, the CDCP will potentiate the sharing of processes that will leverage the benefits of the common data dictionary. Both authorities and industry also agree that any integration and centralization efforts require coordination among the different parties involved to achieve a common vision. The report outlines a proposal for the governance structure (Joint Reporting Committee or JRC) and its membership. This structure is envisaged to ensure participation of all authorities and to also have an efficient operational model.
Development of an integrated reporting system will require significant investments and increased resources by authorities, but also major investments by institutions. However, in the long term, increased efficiency in the reporting process may result in benefits for both authorities and institutions, outweighing these investment costs, considering a carefully planned and executed implementation and development of an integrated reporting system. Developing the common data dictionary by defining business glossaries and common data models, drawing best practices for data integration, and providing an estimate of the resources needed to achieve the integration objectives are a few of the short-term action points that could serve as a basis for building a more detailed roadmap for the Joint Reporting Committee. Developing a more integrated system should be done mindful of the progress already achieved in the area of integration so far. In the report, EBA notes that any change should be implemented gradually so as not to disrupt the current processes and should foster the principle of proportionality. EBA is committed to further contributing to the building of a common vision of integrated reporting across prudential, resolution, and statistical reporting in cooperation with the relevant stakeholders, to leverage on the work already done and on the lessons learned from the different European and national initiatives. The feasibility study is part of the EBA contribution to the European Union supervisory data strategy aiming to improve efficiency of reporting across financial sectors.
- Press Release
- Report on Feasibility Study (PDF)
- Annex to the Repot (PDF)
- Factsheet on EBA View (PDF)
Keywords: Europe, EU, Banking, Basel, Reporting, Regtech, Suptech, Integrated Reporting Framework, Common Data Dictionary, Governance, Central Data Collection Point, CDCP, EBA
Previous ArticleEBA Issues Guidelines to Strengthen AML/CFT Supervision in EU
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.
The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.