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Frankfurt, .
EVOLUTION OF THE EBAREPORTING REQUIREMENTS
18/06/2019
CARLOS MARTINSI T I N F O R M AT I O N M A N A G E R
OUTLINE
2
1 EBA framework releases 2.9 and 2.10
2 EBA framework release 3.0
3 Pillar 3 integration into supervisory reporting
EVOLUTION OF THE EBA REPORTING REQUIREMENTS
RELEASE V2.9 AND 2.10 OF THE REPORTING FRAMEWORK – OVERVIEW/SCOPE (I)
EVOLUTION OF THE EBA REPORTING REQUIREMENTS 3
On framework release 2.9, EBA is moving to a new modular release mode, where different modules of the reporting framework will be published and applied at different points in time
This approach will provide institutions with as much implementation time as possible under the circumstances
RELEASE V2.9 AND 2.10 OF THE REPORTING FRAMEWORK –OVERVIEW/SCOPE (II)
May 19
Feb 21Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Aug 19
Publication2.9 Phase 2
(FIN, SBP)
Dec 19
Application2.9 RES, 2.10 REM
Oct 19
Application2.9 SBP
May 19
Publication2.9 Phase 1
(RES, COR, LCR)
Dec 19
Publication2.10
(FP, REM)
Apr 20
Application2.9 LCR
Mar 20
Application2.9 COR, FIN
Dec 20
Application2.10 FP
Remuneration
Resolution
COREP
FINREP
Liquidity
Benchmarking
Funding Plans
Fraudulent Payments
EVOLUTION OF THE EBA REPORTING REQUIREMENTS 5
RELEASE V2.9 AND 2.10 OF THE REPORTING FRAMEWORK – OVERVIEW/SCOPE (III)
Release 2.9 - Phase 1 Published on 28th May
2.9.RES : Resolution reporting
2.9.LCR : Liquidity Coverage Ratio (LCR amending Delegated Act)
2.9.COR : COREP (new Securitisation framework)
Release 2.9 - Phase 2
2.9.FIN : FINREP (NPE, P&L and IFRS 16) – Being finalised, to be published without technical package
2.9.SBP : Supervisory Benchmarking of internal models - finalising the final draft ITS
Release 2.10
2.10: Guideline on Funding Plans
2.10: Remuneration package (DPM / taxonomy integration)
2.10: Guideline on Fraudulent Payments
EVOLUTION OF THE EBA REPORTING REQUIREMENTS 6
RELEASE V2.9 AND 2.10 OF THE REPORTING FRAMEWORK – OVERVIEW/SCOPE (IV)
OUTLINE
7
1 EBA framework releases 2.9 and 2.10
2 EBA framework release 3.0
3 Pillar 3 integration into supervisory reporting
EVOLUTION OF THE EBA REPORTING REQUIREMENTS
8
General changes
(legal basis, implementation time, waivers, …)
CRR 2
Reporting requirements
Disclosure requirements
Content changes
Leverage ratio
Market risk
CCR
NSFR
Internal and External TLAC
TAs, other smaller am.
EVOLUTION OF THE EBA REPORTING REQUIREMENTS
VERSION 3.0: OVERVIEW OF MAIN CHANGES (I)
9
BRRD 2
MREL / Reporting requirements
EVOLUTION OF THE EBA REPORTING REQUIREMENTS
MREL / Disclosure requirements
VERSION 3.0: OVERVIEW OF MAIN CHANGES (II)
10
Other
EVOLUTION OF THE EBA REPORTING REQUIREMENTS
IRB
NPL backstop
Investment firms
Technical amendments
…
Supervisory benchmarking
Resolution planning
VERSION 3.0: OVERVIEW OF MAIN CHANGES (III)
MAIN CHANGES CRR2 AND BRRD2
EVOLUTION OF THE EBA REPORTING REQUIREMENTS 11
Net Stable Funding Ratio (NSFR)
Counterparty Credit Risk (CCR)
Minimum Requirement for Eligible Liabilities (MREL )+ Total
Loss Absorbing Capacity (TLAC )
New market risk reporting in parallel with the existing
market risk to reflect Fundamental Review of Trading Book
(FRTB)
Minimum requirements for provisioning of NPLs (so called
prudential backstop)
Major changes or new reporting
Leverage Ratio
Internal Ratings Based approach
(IRB)
Large Exposures
Significant changes
Impact on almost all parts of the ITS on
supervisory reporting (Regulation
680/2014)
Replacement of the whole ITS
Main conclusion
TENTATIVE TIMELINE
Builds around the new regulations… and roughly looks like:
EVOLUTION OF THE EBA REPORTING REQUIREMENTS 12
CRR2 entry into force
June 2019
Consultation on new reporting requirements
Q4 2019 Final draft ITS on supervisory
reporting
Q2 2020
CRR2 application
Q2 2021
2019 2020 2021
NEW REPORTING FOR INVESTMENT FIRMS (I)
In the future, investment firms will be subject to a separate prudential regime
13
Legislative timeline
The EU Commission released its proposal on 20 December 2017
Entry into force:
Reporting: 12 months after entry into force of the IFD/IFR
Disclosures: 18 months after entry into force of the IFD/IFR
EVOLUTION OF THE EBA REPORTING REQUIREMENTS
NEW REPORTING FOR INVESTMENT FIRMS (II)
The new categorisation of MiFID investment firms and their reporting requirements
14
Systemic investment firms or exposed to the same
types of risks as credit institutions
categorisation based on GLs or level 2 regulation
Class 1 Class 1 is subject to the (prudential
and) reporting requirements of the CRD/CRR
Simplified reporting framework for Class 2 and Class 3 investment firms
Class 2 firms should be required to report more granular information than Class 3 firms
Other investment firms should apply a more
tailored prudential regime
categorisation based on specific thresholds for
the various activities and services
Small and non-interconnected investment firms
providing some limited and non-combined services
to which a very simple regime should be applied
Class 2
Class 3
EVOLUTION OF THE EBA REPORTING REQUIREMENTS
OUTLINE
15
1 EBA framework releases 2.9 and 2.10
2 EBA framework release 3.0
3 Pillar 3 integration into supervisory reporting
EVOLUTION OF THE EBA REPORTING REQUIREMENTS
PILLAR 3 – INTEGRATION INTO REPORTING AND P3 CENTRAL DATA HUB
EVOLUTION OF THE EBA REPORTING REQUIREMENTS 16
Align definitions,
increase
standardisation and
facilitate
implementation efforts
by institutions
Very positive
feedback from the
industry to further
standardise and
integrate with
reporting
Work to be
undertaken when
developing draft ITS
for Pillar 3
disclosures
DPM to be
developed for
Pillar 3
Integration into
supervisory
reporting
The EBA
as Pillar 3 data
hub
Longer term vision where the EBA
could provide a platform for
standardised P3 disclosures
Integration with reporting is
a prerequisite
Could be used to further
increase proportionality
INTEGRATION OF PILLAR 3 AND REPORTING FRAMEWORK
EVOLUTION OF THE EBA REPORTING REQUIREMENTS 17
Development of ITS on disclosure requirements
Development of Pillar 3 tables and templates in maximum alignment with Basel
Taking into consideration the CRR2 specific requirements
Development of templates and tables
Integrate quantitative Pillar 3disclosures with COREP / FINREP asmuch as possible
Standardisation – Pillar 3 and FINREP/COREP
EBA as Pillar 3 Hub
Proportionality: For small institutions, potential disclosure of Pillar 3 information by the EBA
Centralisation
1st 2nd 3rd
Current work (release v3.0)
EUROPEAN BANKING AUTHORITY
Floors 24-27, 20 Av André Prothin, 92927 Paris La Défense
Tel: +33 1 86 52 7000
E-mail: info@eba.europa.eu
http://www.eba.europa.eu
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