EBA launched the seventh annual transparency exercise for banks in EU. The exercise is aimed at providing market participants with updated information on the financial conditions of EU banks as of June 2020, thus assessing the preliminary impact of the COVID-19 crisis on the sector. EBA plans to publish results of this exercise, along with the Risk Assessment Report, at the beginning of December.
This exercise will complement the information provided through the Spring transparency exercise of June 08, 2020, by disclosing data with reference date as of March and June 2020, thus shedding light on the preliminary impact of the ongoing crisis. EBA will release about one million data points, on average more than 7,000 data points for about 130 participating banks from 27 countries, including UK. The data will cover capital positions, financial assets, financial liabilities, risk exposure amounts, sovereign exposures, and asset quality of banks. The exercise will also include data on loans and advances, subject to legislative and non-legislative moratoria, following the EBA guidelines on reporting and disclosure related to COVID-19 measures. The transparency exercise complements banks' own Pillar 3 disclosures, as laid down in the EU Capital Requirements Directive. Following postponement of the EU-wide stress test exercise due to pandemic, EBA had decided on two transparency exercises this year, one in late spring (already released) and one in late autumn (the current one).
Keywords: Europe, EU, Banking, Risk Assessment Report, COVID-19, Transparency Exercise, Data Collection, Reporting, EBA
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