EBA Updates Documents Post EC Adoption of Pillar3 Disclosure Standards

Introduction of a single set of implementing technical standards on disclosures is necessary to provide institutions with a comprehensive integrated set of uniform disclosure formats, templates, and tables and to ensure high-quality disclosures. Thus, the draft regulation of EC will repeal Regulations 1423/2013, 2015/1555, 2016/200, and 2017/2295 that lay down uniform formats, templates, and tables for own funds, the countercyclical capital buffers, the leverage ratio, and asset encumbrance, respectively. The introductory text in the draft regulation highlighted the following points to indicate the key changes being incorporated into the disclosure requirements:

• CRR2 introduced a new calibrated leverage ratio and the leverage ratio buffer for global systemically important institutions. To implement that amendment and the necessary adjustments in the exposure calculation, it was necessary to lay down the related templates and tables.
• CRR2 introduced the new disclosure requirements for net stable funding ratio. To implement that amendment, it was necessary to lay down a template for those new disclosure requirements.
• CRR2 replaced in CRR the standardized approaches for counterparty credit risk with a Standardized Approach for Counterparty Credit Risk (SA-CCR), which is more risk-sensitive, and with a Simplified SA-CCR for institutions that meet the predefined eligibility criteria. CRR2 also revised the Original Exposure Method. To implement those amendments, it was necessary to introduce a comprehensive set of disclosure tables and templates.
• CRR2 introduced a new disclosure requirement for performing, non-performing and forborne exposures, including the disclosure of information on collaterals and financial guarantees received. To implement that amendment and those new disclosure requirements, it was necessary to introduce a comprehensive set of templates and tables. For reasons of simplicity and consistency, those templates and tables should be based on the disclosure templates and tables that have already been developed by EBA in its guidelines on the disclosure of non-performing and forborne exposures.
• Regulation 2017/2401 amended CRR to reflect, into the capital requirements laid down in Regulation 2017/2401, the specific features of simple, transparent, and standardized (STS) securitizations as laid down in Securitization Regulation (2017/2402). It was necessary to introduce new disclosure templates and tables with quantitative and qualitative information on securitization to reflect that amendment.
• CRR2 amended certain remuneration-related disclosure requirements that were laid down in CRR, to ensure that remuneration policies and practices for categories of material risk-takers are consistent with effective risk management. A set of disclosure templates and tables implementing those disclosure requirements needed to be laid down.

Related Links

• EBA Press Release
• Documents Updated by EBA
• Draft of EC Regulation (PDF)
• Disclosure Templates and Instructions (ZIP)

Effective Date: OJ+1 Day

Effective Date: OJ+1 Day

Keywords: Europe, EU, Banking, Pillar 3, Disclosures, Reporting, Basel, Implementing Technical Standards, Regulatory Capital, CRR2, EBA, EC