EC Finalizes Reporting Standards and Templates Post CRR Revision
EC published the Regulation 2021/451 that sets out the new implementing technical standards for supervisory reporting of institutions, following revisions to the Capital Requirements Regulation (CRR). With this regulation, EC is repealing the earlier Implementing Regulation 680/2014 on supervisory reporting standards. Regulation 2021/451 lays down the uniform reporting formats and templates, instructions and a methodology on the use of these templates, the frequency and dates of reporting, and the definitions and the information technology solutions for reporting to the competent authorities. The Annexes to Regulation 2021/451 contain reporting templates and instructions. Regulation 2021/451 has been published in the Official Journal of the European Union, with March 20, 2021 as the specified date for its entry into force. Regulation 2021/451 shall apply from June 28, 2021, with certain exceptions.
Taking into account the international standards of BCBS, CRR2 (2019/876) amended CRR in a number of aspects, such as the leverage ratio, the net stable funding requirement, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, and reporting and disclosure requirements. The reporting framework laid down in Regulation 680/2014 is, therefore, being revised and the set of templates for the collection of information for supervisory reporting purposes are being updated. Among others, Regulation 2021/451 lays down the implementing standards for:
- Reporting thresholds: entry and exit criteria
- Quarterly and semi-annual reporting on own funds and own funds requirements on an individual basis
- Reporting on own funds and own funds requirements on a consolidated basis
- Reporting on own funds and own funds requirements for investment firms subject to Articles 95 and 96 of CRR on individual and consolidated basis
- Reporting on financial information on a consolidated basis for institutions subject to Regulation 1606/2002
- Reporting on financial information on a consolidated basis for institutions applying national accounting frameworks
- Reporting on losses stemming from lending collateralized by immovable property in accordance with Article 430a(1) of CRR on an individual and a consolidated basis
- Reporting on large exposures on an individual and a consolidated basis
- Reporting on leverage ratio on an individual and a consolidated basis
- Reporting on the liquidity coverage requirement on an individual and a consolidated basis
- Reporting on stable funding on an individual and a consolidated basis
- Reporting on additional liquidity monitoring metrics on an individual and a consolidated basis
- Reporting on asset encumbrance on an individual and a consolidated basis
- Supplementary reporting on a consolidated basis for the purposes of identifying global systemically important institutions (G-SIIs) and assigning G-SII buffer rates
- Data exchange formats and information accompanying submissions
Provisions on reporting for groups that consist only of investment firms subject to Articles 95 and 96 of CRR on an individual basis or a consolidated basis shall cease to apply on June 26, 2026. Regulation 2021/451 states that institutions should start supervisory reporting from the end of the second quarter of 2021. However, reporting for the leverage ratio buffer should start from January 2023, as Regulation 2020/873 has postponed the application of the leverage buffer requirements to January 2023. Regulation 2020/873 amended CRR and CRR2 to make certain adjustments in response to the COVID-19 pandemic.
Related Links
Effective Date: March 20, 2021
Keywords: Europe, EU, Banking, Basel, Reporting, COVID-19, Implementing Technical Standards, Investment Firms, CRR2, Reporting Framework 3.0, EC
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.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
