EBA launched a consultation on the revised implementing technical standards, or ITS, on supervisory reporting. The consultation proposes changes to different areas of reporting, including own funds, credit risk, counterparty credit risk, large exposures, leverage ratio, net stable funding ratio, and FINREP. The deadline for the submission of comments is January 16, 2020. EBA expects to submit the revised draft technical standards to EC in June 2020. The application of the revised requirements will be in June 2021, with the first reporting reference date as of June 30, 2021. During the Summer of 2020, EBA will publish draft data point model (DPM) on the proposed changes to supervisory reporting.
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 to be in line with these amendments. This review of the reporting framework is designed to replace the Implementing Regulation (EU) No 680/2014 and has been used as an opportunity to improve the consistency between reporting and disclosure requirements. These proposals would be part of the EBA reporting framework 3.0.
This consultation paper is the first one of the deliverables that will be presented in a forthcoming roadmap, which describes the EBA strategy to implement CRR2, Capital Requirements Directive (CRD5), Bank Recovery and Resolution Directive (BRRD2), and the Interchange Fee Regulation mandates in the reporting framework. The EBA roadmap will be published in the fourth quarter of 2019.
Comment Due Date: January 16, 2020
Keywords: Europe, EU, Banking, Implementing Technical Standards, Own Funds, Credit Risk, Large Exposures, NSFR, FINREP, CRR2, Disclosures, Framework 3.0, Reporting, EBA
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In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).