Featured Product

    EBA Amends Supervisory Reporting Standards for FINREP

    July 16, 2019

    EBA published amendments to the implementing technical standards on supervisory reporting with regard to the reporting of financial information or FINREP. The amendments concern the reporting requirements on nonperforming exposures (NPE) and forbearance to allow monitoring of reporting institutions' NPE strategies, the reporting requirements on profit and loss items, and the implementation of the International Financial Reporting Standard on leases (IFRS 16). The standards will be submitted to EC for adoption, along with the final draft standards on COREP changes, which were published in May 2019. Publication of the corresponding Data Point Model (DPM) and XBRL taxonomy is expected in August 2019. The technical standards will apply from June 01, 2020 and the first reporting reference date will be June 30, 2020.

    These final draft implementing technical standards amend the EC's Implementing Regulation (EU) No 680/2014 on supervisory reporting with regard to FINREP. These standards aim to improve the reporting requirements on non-performing exposures and forbearance to strengthen supervisors' ability to assess and monitor these exposures. The amended standards allow more granular information to be collected on these exposures on a recurring basis, thus closing the identified data gaps. To ensure proportionality, only institutions having a nonperforming loan (NPL) ratio equal to or greater than 5% are required to report more granular information. 

    Other changes concern the reporting requirements on profit or loss items, in particular additional details on operating and administrative expenses to allow supervisors to make an in-depth analysis on reporting institutions‘ cost structure and to monitor the impact of reporting institutions‘ remuneration policies. These changes apply to both IFRS and N-GAAP reporters. Finally, for IFRS reporters, minor changes were brought about by the implementation of IFRS 16, as this new standard has replace the International Accounting Standards (IAS) 17 since January 01, 2019. Under IFRS 16, the main change is to the accounting of leases by the lessee: the differentiation between finance and operating leases has been removed and assets and liabilities are, with limited exceptions, recognized in respect of all leases. Considering the revised accounting rules, some minor changes to FINREP are made to obtain a complete view of the main impacts on lessees’ financial situation and profit or loss.

     

    Related Links

    Effective Date: June 01, 2020

    Keywords: Europe, EU, Banking, Reporting, FINREP, NPE, NPLs, IFRS 16, Leases Standard, Implementing Technical Standards, Proportionality, EBA

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8280