On 3 August 2020, the European Banking Authority (EBA) published final draft Implementing Technical Standards (ITS) on disclosure and reporting on the global systemically important institution (G-SII) requirement for own funds and eligible liabilities (TLAC) and the minimum requirements for own funds and eligible liabilities (MREL).

This is the first time that the EBA has developed disclosure and reporting requirements in this area, thus expanding the scope of the existing Pillar 3 and supervisory reporting frameworks in the EU. The ITS have been developed in accordance with the mandates included in Articles 430 and 434a Capital Requirements Regulation and Article 45i Bank Recovery and Resolution Directive (BRRD).

The approach in the ITS seek to maximise efficiency for institutions when complying with their disclosure and reporting obligations and to facilitate the use of information by authorities and market participants. For these purposes:

  • MREL and TLAC are presented in an integrated manner, both in the reporting and disclosure templates.
  • Reporting and disclosure requirements are enshrined in a single ITS.
  • Quantitative information that has to be disclosed is integrated with supervisory reporting data, and a mapping table linking the two is provided.

The draft ITS will be submitted to the European Commission for endorsement.

The provisions of the ITS on disclosures on TLAC are to apply immediately after their adoption by the Commission and entry into force. In contrast, the provisions on disclosures on MREL will apply from the date of expiration of the relevant transition periods pursuant to Article 45m of BRRD, i.e. from 1 January 2024 or, where the resolution authority has set a compliance deadline after 1 January 2024, from that compliance deadline.

The first reference date for reporting in accordance with these technical standards is expected to be 30 June 2021, for reporting on both MREL and the TLAC requirement. The expected implementation period for the proposed reporting requirements is 9 months to 1 year. With regard to the reporting requirements, the EBA will also develop a data point model, an XBRL taxonomy and validation rules based on the final draft ITS, which will be published in the third quarter of 2020.