The Capital Requirements Regulation mandates the European Banking Authority (EBA), in Article 99(5) and Article 415(3) to develop uniform reporting requirements.
The EBA has now published its final draft implementing technical standards (ITS) amending the European Commission’s Implementing Regulation (EU) No 680/2014 on supervisory reporting (Implementing Regulation) so as to keep reporting requirements in line with changes in the regulatory framework and with the evolving needs for Supervisory Authorities’ risk assessments. The ITS introduce amendments to Implementing Regulation with regard to the following:
- new requirements as regards the reporting of information on sovereign exposures;
- changed requirements as regards reporting on operational risk;
- changed requirement as regards the reporting of additional monitoring metrics on liquidity; and
- changed requirements as regards reporting on common reporting and leverage ratio (technical amendments).
The EBA states that the data on sovereign exposures currently collected in the Reporting Regulation suffer from several shortcomings, which means that additional ad hoc data collections are required of several competent authorities. To overcome these shortcoming, it is proposed that additional information is proposed to be included in the Reporting Regulation.
Improvements are also necessary to the reported information on operational risk to allow supervisors to monitor the losses due to operational risk events, and to analyse the drivers behind those events that lead to material losses. The EBA states that operational risk remains high on supervisors’ agendas and a close monitoring of institutions’ operational risk losses is required.
The draft ITS will be submitted to the European Commission for endorsement before being published in the Official Journal of the European Union. The technical standards will apply from March 2018, with a reporting reference date of 31 March 2018.