Featured Product

    ECB Expects Integrated Reporting Framework to Go Live in 2027

    December 17, 2021

    The European Central Bank (ECB) is taking the next step in the project to develop the integrated reporting framework or IReF. Following an industry-wide consultation, ECB is now launching the design phase of the project, which is expected to go live in 2027. This timeframe will enable reporting agents and the European System of Central Banks (ESCB) to undertake the necessary technical work. One of the next steps in the project will be to draft an ECB regulation, which is expected to be adopted in 2024. In parallel, the ESCB will continue cooperating with the European Banking Authority, the European Commission, and the Single Resolution Board to harmonize the reporting of all (statistical, prudential, and resolution) data that banks have to provide to the European authorities. Post an industry consultation, ECB also published a report on the cost-benefit assessment on the integrated reporting framework.

    The integrated reporting framework will ensure a common understanding of the statistical terms and standardize the information that banks are required to provide to their respective central banks. This harmonized statistical reporting system is intended to make it easier for banks to report statistical data to the ESCB and to reduce their reporting burden by leveraging digitalization and state-of-the-art production organization; the system will also facilitate policymaker analysis and data comparison. As part of the consultation, banks were asked to assess the costs and benefits of the system and the results show that nearly two-third of the banks believed that the benefits of this would outweigh the costs. The integrated reporting framework seeks to integrate the existing ESCB statistical data requirements for banks, as far as possible, into a unique and standardized reporting framework that is applicable across the euro area. In its initial phase, the integrated reporting framework is focusing primarily on the ECB statistical datasets related to banks; thus, it will cover the requirements of ECB regulations on balance sheet items (BSI) and interest rates (MIR) of monetary financial institutions statistics, the sectoral module of Securities Holdings Statistics (SHS-S), and granular credit and credit risk data (AnaCredit). In respect of SHS-S, the framework will also cover requirements for banks in their role as custodians. The integration of the group module of the SHS will be considered in a second step, while other ECB statistics that do not directly relate to banks’ balance sheet assets and liabilities, such as ECB payments or money market statistics, are not currently covered by the integrated reporting framework.

    The integrated reporting framework also envisages the integration of reporting obligations on banks’ own positions and transactions arising in the context of statistics on balance of payments (b.o.p.), international investment positions (i.i.p.), financial accounts and securities issued. Other requirements arising from the collection frameworks of international organizations (for example, BIS Locational Banking Statistics or IMF Standardized Report Forms) are also considered. The granularity of the reporting framework scheme is expected to cover a large share of the existing statistics collected by national central banks that are outside the scope of ECB regulations. Nevertheless, the national central banks may decide to preserve country-specific requirements, for example,. to comply with national legal obligations (such as activities related to anti-money laundering or government support). Such requirements will not be covered under the integrated reporting framework, but will continue to be legislated at the national level. However, these requirements will ideally be modeled and described from a technical and methodological perspective in full consistency with the integrated reporting scheme through the development of an integrated reporting framework extended technical layer. In this way, overlapping requirements across two or more countries will be described in a uniformly in consistency with the integrated reporting framework requirements.

     

    Related Links

    Keywords: Europe, EU, Banking, Guidance, ESG, Basel, Reporting, AnaCredit, SHS, Statistical Reporting, Integrated Reporting Framework, Credit Risk, BSI, ESCB, Banking Supervision, IReF, ECB

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    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.

    November 15, 2022 WebPage Regulatory News
    News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    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.

    November 15, 2022 WebPage Regulatory News
    News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    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.

    November 14, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    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.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    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.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    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

    November 09, 2022 WebPage Regulatory News
    News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    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.

    November 08, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8596