ECB Offers Opinion on Draft Belgian Law on Granular Credit Reporting
The European Central Bank (ECB) published an opinion on the draft legislation that amends and replaces the legal framework, including the Law on the Central Corporate Credit Register (CCCR)2 and the Royal Decree on the CCCR3. Under CCCR, credit institutions established in Belgium must report certain data on credits granted to beneficiaries to the e Nationale Bank van Belgiё/Banque Nationale de Belgique (NBB/BNB). ECB provided this opinion in response to a request from the Belgian Minister for Finance. In its opinion, ECB welcomes the draft legislation since it amends and replaces the existing national legal framework on reporting obligations related to information on credit granted to legal entities to obtain a comprehensive and efficient centralization of granular credit data needed for national purposes and for the purposes of the AnaCredit Regulation.
ECB believes that the draft legislation allows for financial institutions to better evaluate the risks of granting credit and enables supervisory authorities to evaluate the risks borne by the financial sector more easily. In addition, the draft legislation incorporates, to the extent possible, the reporting obligations that have direct effect by reason of the AnaCredit Regulation with additional obligations imposed by national law into one legal framework. In this respect, ECB welcomes the efforts of the Belgian legislator to prevent double reporting by reporting agents; it also noted that in case the scope of the AnaCredit Regulation is extended to include certain supplementary data, the draft law would need to be revisited. With regard to the supplementary data on natural persons, as noted in the recitals of the AnaCredit Regulation, should the scope of reporting be extended to include personal data in subsequent stages, the protection of the rights of natural persons with regard to the collection and processing of their personal data should be ensured. ECB welcomes that the draft law provides this protection of the processing of personal data collected concerning natural persons.
Furthermore, ECB wishes to draw the attention of the Minister for Finance to the sanctioning regime, which applies in respect of a failure by reporting agents to comply with the statistical reporting requirements of ECB and which is also referred to in the AnaCredit Regulation. While the sanctioning regime of ECB, under the AnaCredit Regulation, is referenced in the draft law, the draft law could usefully clarify, for the avoidance of doubt, that the sanctioning regime under the draft law operates without prejudice to the sanctioning regime of ECB under EU law. The opinion also reiterates that the power of ECB to impose sanctions is independent of the right of the NBB/BNB to impose sanctions with regard to the information that the draft law requires to be reported that goes beyond the scope of the AnaCredit Regulation.
Related Link: ECB Opinion (PDF)
Keywords: Europe, EU, Belgium, Banking, AnaCredit, Reporting, Credit Risk, Central Credit Register, CCCR, Opinion, NBB, ECB
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
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 ArticleEBA Proposes to Remove NOK from Constraint List for LCR Calculation
ECB Finds Banks Unprepared for Pillar 3 Climate Risk Disclosures
The European Central Bank (ECB) published results of the 2022 supervisory assessment of climate-related and environmental risk disclosures among significant institutions (103) and a selected number of less significant institutions (28).
NCUA Assesses Credit Union Exposure to Climate-Related Physical Risks
The National Credit Union Administration (NCUA) released a Research Note that examines the exposure of credit unions to climate-related physical risks. In a related development
EBA Issues Multiple Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) is seeking comments, until July 31, 2023, on the draft Guidelines on the proposed common approach to the resubmission of historical data under the EBA reporting framework.
EC Adopts Regulation on Own Funds, Issues Other Updates
The European Commission adopted Delegated Regulations on own funds and eligible liabilities, on requirements for the internal methodology under the internal default risk model
CDP Platform to Report Plastic-Related Impact, Issues Other Updates
The Carbon Disclosure Project (CDP) announced that its global environmental disclosure platform has enabled reporting on plastic-related impact for nearly 7,000 companies worldwide
IASB to Enhance Reporting of Climate Risks, Proposes IFRS 9 Amendments
The International Accounting Standards Board (IASB) updated its work plan to enhance the reporting of climate-related risks in the financial statements,
BIS Addresses Data Gaps and Macro-Prudential Policy for Climate Risks
The Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) published a brief paper that examines challenges associated with the use of macro-prudential policies to address climate-related financial risks.
FCA Sets Out Business Plan, Launches TechSprint on Greenwashing
The Financial Conduct Authority (FCA) published its business plan for 2023-24. The plan sets out details of the work planned for the next 12 months to achieve better outcomes for consumers and markets
UK Committee Sets Out Recommendations for Next Phase of Open Banking
The Joint Regulatory Oversight Committee (JROC), comprising the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) as co-chairs and the HM Treasury and the Competition and Markets Authority (CMA) as members
ECB Publishes Multiple Regulatory Updates for Banking Institutions
The European Central Bank (ECB) published the results of the 2022 climate risk stress test of the Eurosystem balance sheet,