EBA to Require Additional Reporting and Disclosures for COVID Measures
EBA published the guidelines and templates for reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis. EBA is introducing, on a temporary basis, additional reporting for the payment moratoria applied to ease COVID impact, forbearance measures applied in response to COVID-19 to the existing loans, and public guarantees to new lending in response to the COVID-19 pandemic. The first reporting reference date and the disclosure reference date will be June 30, 2020. The reporting guidelines will be part of the version 2.10 reporting framework release that will be published in June 2020.
The guidelines have been developed to address data gaps associated with the relief measures to ensure an appropriate understanding of institutions’ risk profile and the asset quality on their balance sheets both for supervisors and the wider public. The guidelines cover information that is crucial for understanding the prudential soundness of individual institutions, without impacting their treatment of creditors under moratoria or public guarantees. The information requested here reflects the type of information that senior management in institutions is asking for, and is key to understanding the overall financial stability in EU. The guidelines are built on the existing definitions of the Commission Implementing Regulation No 680/2014 (FINREP). The guidelines cover the following:
- Reporting requirements to monitor the use of payment moratoria and the evolution of the credit quality of the exposures subject to such moratoria in accordance with the guidelines on moratoria
- Disclosure requirements for the exposures subject to the payment moratoria in accordance with the guidelines on moratoria
- Reporting requirements for the new loans subject to specific public guarantees set up to mitigate the effects of the COVID-19 crisis
- Disclosure requirements for the new loans subject to the specific public guarantees set up to mitigate the effects of COVID-19 crisis
- Reporting requirements on other forbearance measures applied in response to the COVID-19 crisis
To facilitate reporting on the basis of these guidelines, EBA will provide technical package, covering validation rules, the data point model (DPM), and the XBRL taxonomy and will fully integrate the new reporting into the EBA reporting framework. Similar to the implementing technical standards on reporting, the XBRL taxonomy will not be mandatory for reporting institutions and will not be part of the guidelines. To facilitate that additional reporting, and reduce the costs for institutions and competent authorities, EBA will also link the technical release of the new reporting requirements with the existing planned release (as a separate module in 2.10 phase 2). EBA will publish the version 2.10 Phase 2 release in June 2020. The additional reporting and disclosure requirements are expected to be time-limited as they are introduced strictly in the context of the COVID-19 pandemic. These reporting and disclosure templates from EBA consider the need for proportionality in terms of the size and complexity of the institutions, the specificities of the measures introduced in member states, and operational efficiency of institutions in current circumstances. Reporting should be performed on a quarterly basis, with the first reference date of June 30, 2020 and for an expected period of 18 months. Disclosure should be performed semi-annually on June 30 and December 31.
Related Links
Keywords: Europe, EU, Banking, Basel, Reporting, Disclosures, COVID-19, FINREP, Reporting Framework 2.10, Credit Risk, Loan Moratorium, Guarantee Scheme, EBA
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.
Related 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.
