The European Banking Authority (EBA) has published a recommendation on the use of a legal entity identifier (LEI) for supervisory reporting requirements under the Capital Requirements Regulation (CRR).
The EBA has developed draft implementing Technical Standards on Supervisory Reporting (ITS) ensuring uniform reporting requirements across all Member States, as mandated by the CRR. The ITS cover reporting of own funds and capital requirements, financial information, large exposures, liquidity ratios, leverage ratios and asset encumbrance. In the context of the ITS and in accordance with an EBA decision on reporting, regulatory authorities in Member States have to submit to the EBA the data included in the ITS collected from a sample of institutions in their jurisdictions. For submitting data to the EBA, a single supranational identifier of banks needs to be chosen to collect and store data.
Within the recommendation the EBA demonstrates support the adoption of the legal entity identification (LEI) system proposed by the Financial Stability Board and endorsed by the G20. Whilst a global LEI system is not yet fully operational a number of entities, sponsored by national authorities, have already started to issue LEI-like identifiers (pre-LEIs) in order to satisfy local reporting requirements.
Given that a global LEI is not yet fully operational, the EBA considers that the use of pre-LEIs by national authorities is the best short-term solution, which will enhance supervisory convergence and will contribute to ensuring high quality, reliable and comparable data.
The recommendation applies from 31 January 2014. Member States must notify the EBA whether they comply, or intend to comply, with the recommendation by 29 March 2014.
View Recommendation on the use of the legal entity identifier (LEI), 29 January 2014