EBA published the implementing technical standards on Pillar 3 disclosures, in addition to the implementing technical standards on supervisory reporting as part of the reporting framework 3.0. The implementing standards on public disclosures implement regulatory changes introduced by the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876) and aligns the disclosure framework in EU with Basel Pillar 3 standards. The draft implementing technical standards on supervisory reporting reflect the changes brought in by CRR2 and the Prudential Backstop Regulation. Both technical standards have been released in the context of EBA Roadmap on the Risk Reduction Package on disclosures and on supervisory reporting. The first disclosure and reporting reference dates under these standards will be June 30, 2021.
Draft Implementing Technical Standards on Public Disclosures
The Capital Requirements Regulation (CRR) mandates EBA to develop draft implementing technical standards specifying uniform disclosure formats and the associated instructions, in accordance with which the disclosures required under Titles II and III of Part Eight of the CRR shall be made. Following this mandate, EBA has updated its strategy regarding the policy on institutions’ Pillar 3 disclosures. The key goals of the strategy and the new technical standards are to:
- Optimize the Pillar 3 policy framework to provide a single comprehensive package that brings together all previous pieces of regulation and incorporates all prudential disclosures, thus facilitating implementation by institutions
- Promote market discipline by increasing the consistency and comparability of the information disclosed by institutions
- Facilitate access to users of information to institutions’ key prudential data by introducing the new key metrics templates
- Foster ease of implementation for institutions by facilitating their access to, and understanding of, all the disclosure templates and tables
- Increase the efficiency of disclosures by institutions and reduce costs via technology, through the integration of quantitative disclosure data and supervisory reporting
Draft Implementing Technical Standards on Supervisory Reporting
The standards on supervisory reporting cover new reporting requirements on counterparty credit risk and net stable funding ratio, non-performing exposures' minimum coverage, and changes to different areas of reporting, including own funds, credit risk, large exposures, leverage ratio, FINREP, and global systemically important institution (G-SII) indicators. The technical standards also include several proportionality measures, including simplified NSFR reporting for small and non-complex institutions. The standards are a part of the EBA reporting framework 3.0. The draft technical standards will be submitted to EC for endorsement before being published in the Official Journal of the European Union. EBA will also develop data point model (DPM), XBRL taxonomy, and validation rules based on the final draft technical standards. The first reference date for the application of these technical standards is expected to be June 30, 2021. The expected implementation period for the proposed changes is one year.
In 2019, two amendments to the Capital Requirements Regulation (CRR) affected supervisory reporting. One was the finalization of CRR2 (amending Regulation 2019/876), which implements a number key measures such as liquidity, leverage, and large exposures, and the other was the final Backstop Regulation (amending Regulation 2019/630), which sets minimum loss coverage for future non-performing exposures. A number of reporting modules had to be revised as a result of these amendments. The technical standards on supervisory reporting are designed to replace the Implementing Regulation No 680/2014 and have been used as an opportunity to improve consistency between reporting and disclosure requirements.
- Press Release
- Standards on Disclosures (PDF)
- Standards on Supervisory Reporting (PDF)
- EBA Roadmap on Risk Reduction Package (PDF)
Keywords: Europe, EU, Banking, Pillar 3, Disclosures, Reporting, CRR2, Basel, Own Funds, Credit Risk, NSFR, Proportionality, FINREP, Framework 3.0, Large Exposures, Implementing Technical Standards, EBA
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.