Featured Product

    EBA Proposes Changes to COREP, Asset Encumbrance, and G-SII Reporting

    June 24, 2021

    EBA is proposing to amend the implementing technical standards (EU Regulation 2021/451) on supervisory reporting, with respect to reporting for securitizations, for asset encumbrance, and for data on identifying global systemically important institutions (G-SIIs) and assigning G-SII buffer rates. Besides that, the proposal also includes a number of minor amendments to the reporting on own funds requirements. The consultation runs until September 23, 2021.

    EC had adopted, on July 24, 2020, a Capital Markets Recovery Package that included targeted adjustments to the securitization framework, which came into force in April 2021. The changes to the securitizations framework introduced a number of new concepts, which are not captured in the current reporting framework. These changes should be reflected in COREP requirements to keep reporting aligned with the prudential requirements. This consultation paper sets out proposals for limited amendments to COREP and is aimed at collecting information on the portion of software assets that is deducted from the common equity tier 1 (CET1) items pursuant to the new prudential treatment and the amount of software accounted as intangible assets that is risk-weighted in accordance with the Capital Requirements Regulation (CRR). This consultation paper also sets out a number of minor amendments to the templates and instructions on reporting, to improve the clarity of the reporting requirements. In addition, typos, erroneous references, and formatting inconsistencies have been corrected.

    In line with the recommendations presented in the Study on the cost of compliance with supervisory reporting requirements, this consultation paper sets out a proposal for exempting small and non-complex institutions from the reporting of more detailed data on asset encumbrance (F 33, F 34, F 36) as well as changing the definition of the level of asset encumbrance to create a level playing field between entities applying different accounting standards. Regarding the reporting of information for determining G-SIIs and assigning G-SII buffer rates, EBA is proposing to slightly expand the scope of application of the reporting obligation, to include standalone entities, and not only banking groups, that meet the relevant criteria. Post consultation, in December 2021, EBA expects to finalize the draft technical standards and submit them to EC, along with the amendments to the additional liquidity monitoring metrics reporting. EBA will also develop the 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 foreseen to be December 2022. The expected implementation period for the proposed changes is approximately one year.


    Related Links

    Comment Due Date: September 23, 2021

    Keywords: Europe, EU, Banking, Reporting, Securitization Framework, COREP, Asset Encumbrance, G-SII, CRR, Basel, Capital Markets Recovery Package, Proportionality, EBA

    Featured Experts
    Related Articles

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News

    EBA Updates Address Securitization Standards and DGS Guidelines

    The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.

    February 21, 2023 WebPage Regulatory News

    FSB Publishes Letter to G20, Sets Out Work Priorities for 2023

    The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793