ECB Report Examines Impact of Integrated Reporting Framework of ESCB
ECB published the results of a comprehensive cost-benefit analysis aimed to assess, in close cooperation with the banking industry, the impact of the Integrated Reporting Framework (IReF) of the European System of Central Banks (ESCB) on all stakeholders. ECB had issued the questionnaire on IReF in June 2018, with all euro area countries, in addition to Romania and Sweden, participating in the survey. Annex 1 of the report presents the national results (including for Romania and Sweden) of the survey. ECB also published a document providing an overview of the IReF.
On expected benefits of the IReF, the banking industry assigned high priority to the harmonization of concepts and methodologies underlying statistical reporting and to having a unique reporting scheme across statistical domains, which reduces overlaps. Regarding challenges in implementing the IReF, respondents considered those related to maintaining parallel systems for the datasets to be integrated into the IReF before the IReF system reaches a steady state and developing new reporting systems or changing existing ones when they have not yet reached the end of their lifecycles. Reporting agents expressed a high degree of support for setting up a reporting system that would enable the collection of supervisory data as part of a broader integrated framework. Respondents also see significant benefits of the IReF's introduction in unlocking the potential of the Banks' Integrated Reporting Dictionary (BIRD) for fulfilling reporting.
The vast majority of reporting agents consider 2024-2027 as being the most realistic period for the implementation of IReF. By 2024, ESCB and the banking industry will further cooperate on the definition of the IReF's technical features, including a detailed reporting scheme and the general governance of the data transmission. Such a timeline would respect lifecycles of the existing IT systems and would ensure enough lead time for all involved stakeholders to implement the requirements. The analysis shows that the banking industry supports an integration of AnaCredit into the IReF in such a way that the granular loan data would be directly used for the compilation of aggregated statistics. The majority of respondents indicated that, for both granular credit data necessary for the compilation of aggregated statistics and security-by-security data on holdings and issuance of ISIN securities, a monthly data transmission within 10-12 working days from the end of the reference period is either feasible or already in line with the national practices.
The idea underpinning the ESCB IReF is to integrate the existing ESCB statistical data requirements for banks into a single framework, thus ensuring integration across countries and data domains. The IReF would consist of an integrated set of reports for banks, aimed in the long run to replace the national reporting templates as far as possible. The IReF also contains a unique set of transformation rules for compiling the derived statistics required by authorities, possibly to be shared with the stakeholders involved.
Related Links
Keywords: Europe, EU, Banking, Reporting, IReF, Integrated Reporting, BIRD, AnaCredit, ECB
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Scott Dietz
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.
Previous Article
ISDA Consults on Fallbacks for Euro LIBOR and EURIBORRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
