Featured Product

    EBA Launches Consultation on Disclosure and Reporting of MREL and TLAC

    November 22, 2019

    EBA is consulting on the draft implementing technical standard on disclosure and reporting of the minimum requirement for own funds and eligible liabilities (MREL) and total loss absorbency requirement (TLAC). The draft standard follows an integrated approach and is aligned with disclosure standards under the Basel Pillar 3. The draft standard includes proposals for templates and tables implementing the TLAC and MREL disclosures and reporting requirements. In addition to the implementing technical standards, the consultation paper includes two recommended reporting templates covering the forecast of MREL and TLAC positions and funding structures, along with a mapping of the disclosure and reporting requirements. The consultation period ends on February 22, 2020.

    MREL and TLAC are integrated for both the reporting and the disclosure templates, with both reporting and disclosure requirements being enshrined in a single set of implementing technical standards. This integrated approach aims to optimize efficiency by institutions when complying with the disclosure and reporting obligations, to facilitate the use of information by authorities and market participants, and to promote market discipline. The consultation paper presents proposals implementing the disclosure and reporting requirements on both MREL and TLAC in accordance with mandates included in the revised Capital Requirements Regulation (CRR 2) and the revised Bank Recovery and Resolution Directive (BRRD 2). The annexes to the consultation paper include the following information:

    • Reporting templates (Annex 1) and instructions (Annex 2) on MREL and TLAC
    • Data point model and validation rules (Annex 3) 
    • Reporting on MREL and TLAC related to standardized ranking (Annex 4) 
    • Disclosure templates (Annex 5) and associated instructions (Annex 6) on MREL and TLAC 
    • Reporting templates and instructions covering forecast of MREL and TLAC (Annexes 7 and 8, respectively) 

    This consultation paper is one of the deliverables presented in the EBA roadmap on risk-reduction measures package, which explains the Pillar 3 strategy of EBA to implement a comprehensive disclosure framework. The aim of this implementation is to become the EU-wide Pillar 3 hub and to facilitate the EBA pathway for a more efficient and proportionate supervisory reporting. EBA is expected to submit the final draft technical standard to EC in June 2020. With regard to the reporting requirements, EBA will develop data point model, XBRL taxonomy, and validation rules based on the final draft technical standard, which are likely to be published in the third quarter of 2020.

    The provisions of this technical standard on the disclosure on TLAC are envisaged to apply immediately after its  entry into force and adoption by EC. However, provisions on the MREL disclosure will apply from the date of the expiration of transition periods, pursuant to Article 45m of BRRD—that is, from January 01, 2024 or, where the resolution authority set a compliance deadline after January 01, 2024, from that compliance deadline. The first reference date for reporting in accordance with these technical standards is foreseen to be June 30, 2021, both for reporting on the MREL and the TLAC requirements. The expected implementation period for the proposed reporting requirements is approximately one year.

     

    Related Links

    Comment Due Date: February 22, 2020

    Keywords: Europe, EU, Banking, MREL, TLAC, Reporting, Disclosures, Pillar 3, Basel III, CRR 2, BRRD 2, Implementing Technical Standards, Proportionality, Bal-In, G-SIBs, EBA

    Featured Experts
    Related Articles
    News

    FINMA Approves Merger of Credit Suisse and UBS

    The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.

    March 21, 2023 WebPage Regulatory News
    News

    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
    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
    News

    APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.

    March 07, 2023 WebPage Regulatory News
    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
    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
    News

    MFSA Sets Out Supervisory Priorities, Issues Reporting Updates

    The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023

    March 02, 2023 WebPage Regulatory News
    News

    German Regulators Issue Multiple Reporting Updates for Banks

    Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022

    March 02, 2023 WebPage Regulatory News
    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
    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
    RESULTS 1 - 10 OF 8806