Featured Product

    ECB Further Reviews Costs and Benefits Associated with IReF

    September 15, 2022

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states. Subject to the adoption of the IReF Regulation by the Governing Council in 2025, the IReF is expected to go live in 2027. ECB has now published three detailed reports, based on the feedback received from the banking industry during the cost-benefit assessment, with the reports focusing on certain technical aspects, reporting schedules, and technical integration of country-specific requirements.

    The report on content-related topics and technical aspects notes that the banking industry supports the use of a highly normalized entity relationship model for the representation of IReF requirements. The preferred approach for IReF technical implementation would be to use an entity relationship model with a lower level of normalization. Overall, the collection of complementary attributes to document cases where a value is not applicable or not required (“null explanatory values”) is seen as beneficial. With regard to the IReF features arising from the integration of existing requirements, the collection of granular data on securities issued as a debtor was supported, collecting instrument level data on intra-group positions was deemed feasible, and the feedback received from the banking industry supports aggregated data collection for holdings and issuance of other equity; however, an alignment of the requirements with the data collection for unlisted and non-ISIN securities is still considered useful. New variables may be considered instrumental in simplifying IReF reporting. In addition, country-specific requirements that are common across the euro area may be integrated into the common IReF reporting scheme. Therefore, a cost-benefit assessment will be initiated by early 2023, focusing on selected topics where further investigation is deemed to be beneficial.

    The report on reporting schedules, revision policy, approach to derogations, and implementation aspects notes that, with respect to the revision policy, the banking industry expressed a preference for a short revision time window. With respect to the reporting schedule, the analyses identified various variables and measures whose timeline can be either relaxed or brought forward in the IReF reporting scheme; advantages in aligning the reporting schedules of the quarterly transmission with FINREP; and the proposed transmission of certain attributes that do not refer to a reporting period before the start of the official reporting cycles was not supported by the banking industry. For aspects relating to the implementation of the IReF, a short phase of parallel reporting of up to six months during the IReF implementation period was supported by the banking industry. Strong support was found for sharing validation rules and plausibility checks with reporting agents. With regard to the revision policy, the banking industry expressed a preference for a short revision time window.

    The report on technical integration of country-specific requirements develops a framework to conceptualize country-specific requirements and describes the logic for establishing the IReF extended technical layer. It describes how the IReF extended technical layer can be translated into actual reporting requirements based on feedback received from the banking industry. The report looks at how the IReF extended technical layer can be used to define the reporting scheme applicable at the national level and whether discretion can be provided to reporting agents to adapt their reporting to the extent that it fulfils all the reporting obligations they are subject to, both under the IReF Regulation and under the national legislation. It is envisaged that this standardized layer, referred to as the IReF extended technical layer, will consist of a logical data model to represent the requirements that would cover and display in a logical way business aspects, interdependencies, and constraints affecting the requirements; it will also consist of an implementation model for the data to be reported by banks (whether arising from the IReF Regulation or country-specific).


    Related Links



    Keywords: Europe, EU, Banking, Reporting, Basel, IReF, Statistical Reporting, Granular Reporting, National Reporting, Regtech, Suptech, ECB

    Featured Experts
    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.

    January 31, 2023 WebPage Regulatory News

    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.

    January 17, 2023 WebPage Regulatory News

    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.

    January 04, 2023 WebPage Regulatory News

    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.

    January 01, 2023 WebPage Regulatory News

    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.

    December 30, 2022 WebPage Regulatory News

    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.

    December 29, 2022 WebPage Regulatory News

    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.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    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.

    December 22, 2022 WebPage Regulatory News

    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.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699