EBA proposed the new comprehensive implementing technical standard (ITS) for public disclosures by financial institutions. The implementing standard will implement regulatory changes introduced by the revised Capital Requirements Regulation (CRR2 or EU No 2019/876) and aligns the EU disclosure framework with international standards. The deadline for submission of comments is January 16, 2020. EBA expects to submit the revised draft technical standard to EC in June 2020. The application of the disclosure requirements will be in June 2021.
This ambitious proposal seeks to optimize the EBA Pillar 3 policy framework by moving from a silo-based approach, with different disclosure policy products, to an all-inclusive technical standard. This consultation paper is the first one of the deliverables that will be presented in a forthcoming EBA roadmap on the Pillar 3 disclosures of institutions. The roadmap, which will be published in the fourth quarter of 2019, provides an overview of the EBA Pillar 3 strategy, deliverables, and timeline for the implementation of disclosure requirements included in the CRR2/BRRD2, including the environmental, social, and governance (ESG) risks and climate-change-related information as well as the disclosure requirements for investment firms.
CRR2 introduced new disclosure requirements for institutions and a mandate for EBA to implement them in a way that conveys sufficiently comprehensive and comparable information for market participants to assess the risk profiles of institutions (Article 434a of the CRR2). The new technical standard aims to implement the CRR2 regulatory changes in alignment with the revised Basel Pillar 3 standards. The all-inclusive technical standard provides a complete Pillar 3 disclosure framework and has been developed to foster consistency with supervisory reporting. A mapping between quantitative disclosure data and reporting is provided to facilitate compliance by institutions.
Comment Due Date: January 16, 2020
Keywords: Europe, EU, Banking, Pillar 3, Disclosures, Implementing Technical Standards, Reporting, CRR2, Basel III, BRRD2, EBA
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