XBRL UK. 17 June 2013. |. London. Meri Rimmanen. |. EBA. Wolfgang Strohbach. |. EBA. Outline. Financial supervision in the EU – role of the EBA. Single rulebook and the case for harmonised supervisory data. ID: 393301
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Technical Standards on supervisory reporting
XBRL UK
17 June 2013
|
London
Meri Rimmanen
|
EBA
Wolfgang Strohbach
|
EBA
Slide2Outline
Financial supervision in the EU – role of the EBA
Single rulebook and the case for harmonised supervisory data
Technical standards on supervisory reporting – main features
Facilitating implementation of supervisory reporting requirements
Slide3
ESRB
ESFS
EIOPA
EBA
ESMA
Joint Committee
EU central banks
EU supervisors
Macro
prudential
Microprudential
European System of Financial Supervision
Slide4EBA regulatory tasks
Slide5Outline
Financial supervision in the EU – role of the EBA
Single rulebook and the case for harmonised supervisory data
Technical standards on supervisory reporting – main features
Facilitating implementation of supervisory reporting requirements
Slide6Reporting before… and after…
Supervisor 1
Supervisor 3
Supervisor 2
Different
data definitions
Common data definitions, instructions
Several formats Single format
Different technologies IT standards
Supervisor 1
Supervisor 2
Supervisor 3
Group A
Group B
Group C
Group A, B, C
Common
framework
Technical Standards on supervisory reporting
Objective: increase efficiency in reporting systems, enhance data analysis capabilities
Slide7ITS on supervisory reporting - benefits
Directly applicable
No implementation, or interpretation of the Regulation on national level ensures common definitions and instructions
Technical translation of reporting requirements
Data point model and XBRL taxonomy
Common validation rules
Truly harmonised supervisory data
Helps supervisors to assess asset quality, risk concentrations, liquidity positions, conduct peer analysis, analyse risk parameters across institutions
Harmonised definitions, especially on forbearance, non-performing loans and asset encumbrance significantly enhance identification of potential systemic risks
Slide8The role of EBA – main objectives and tasks
Main objectives:Establishing EU single rule bookPromoting and enhancing quality and consistency of supervisionReinforcing oversight of cross-border groupsEarly warning of upcoming vulnerabilitiesEffective early intervention and bank resolution
Main tasks: Develop binding technical standards, guidelines, recommendations Promoting common supervisory culture / supervisory practices Peer group analyses and peer reviewsMonitoring effectiveness collegesEU-wide risk assessments and stress testsRisk dashboards Reacting on risk warningsHandling of emergency situations
Slide9EBA oversight tasks – data usage
Slide10Benefits of harmonised data
Data
from
banks across the EU provides a
more comprehensive picture on exposures, risks, potential pockets
of
vulnerabilities
Peer analysis, identification of institutions posing systemic risk (outliers)
Provide
high
quality benchmarks for stress testing (harmonised
definitions) and asset quality reviews
Improve analysis on concentration
risk (large exposures, geographical breakdown of exposures)
Facilitate data sharing among competent authorities
Slide11Outline
Financial supervision in the EU – role of the EBA
Single rulebook and the case for harmonised supervisory data
Technical standards on supervisory reporting
Solvency
Financial reporting
Asset encumbrance
Large Exposures
Liquidity
Leverage ratio
Proportionality
Facilitating implementation of supervisory reporting requirements
Slide12ITS on supervisory reporting – what is covered
EBA to deliver ITS
in
the following areas
of the Capital Requirement Regulation (CRR
):
Art
99 Solvency reporting, financial reporting
Art 100 Asset encumbrance
Art
101 Mortgage exposures reporting
Art
394 Large
exposures reporting
Art
415 Liquidity ratios reporting
Art
430 Leverage ratio reporting
Integrated
approach to ITS development
Several ITS packaged as one EU
Regulation which is directly applicable to all credit institutions and investment firms
Use of common
structure/conventions/concepts/definitions
Slide13ITS on supervisory reporting – COREP
Reporting
population
, level of application and scope of consolidation
Credit institutions and investment firms
Consolidated
level and
individual
level
CRD scope of consolidation
Frequency
Quarterly
Exception
:
semi-annually
Material operational risk losses (OPR Details
)
Securitisation transactions (SEC Details)
Reporting delay 6 weeks
Compliance monitoring
Monitoring compliance of capital requirements regulation
Granular information on risk parameters, risk concentrations, securitised exposures
Based on the CEBS reporting
guidelines
Slide14ITS on supervisory reporting - FINREP
Reporting population
, level of application and scope of consolidation
IFRS
institutions on a consolidated
basis
National supervisory authorities may extend the implementation also to other institutions
CRD scope of consolidation
Frequency
Quarterly, semi-annually and annually
Reporting delay 6
weeks
Monitoring, IFRS-based reporting
Harmonised financial reporting following as much as possible IFRS
Some presentational options have been restricted in order to develop harmonised templates
In some cases the data requirements go beyond IFRS to provide data for
risk assessment and analysis of systemic
risks
Forbearance and non-performing loans reporting
Based on the CEBS reporting
guidelines
Slide15ITS on supervisory reporting - Modules
Application
Frequency
Objective
Liquidity
Credit institutions and investment firms
Consolidated level and individual level
CRD scope of consolidation
Monthly/quarterly
2/6 weeks reporting delay
Monitoring and calibration
EBA to report to the Commission
Large Exposures
Quarterly
Reporting delay 6 weeks
Compliance monitoring
Concentration risk monitoring
Based on CEBS reporting Guidelines
Leverage Ratio
Monitoring and calibration
EBA to report to the Commission
Asset encumbrance
Monitoring level of encumbered assets
Slide16Outline
Financial supervision in the EU – role of the EBA
Single rulebook and the case for harmonised supervisory data
Technical standards on supervisory reporting – main features
Facilitating implementation of supervisory reporting requirements
Slide17ITS on supervisory reporting - Data Point Model
What is the DPM?
A data point is a data element required in the reporting framework, i.e. each template cell will correspond to a data point, and different cells with the same meaning should correspond to the same data point.
The DPM is a data model that captures the information requirements of the reporting framework.
The DPM is a dimensional model, meaning that each data point is categorised by a set of elements of different dimensions.
Why the DPM?
Complex or dubious business concepts are broken down into more elementary concepts, in order to clarify the meaning of a data point.
The DPM expresses the reporting requirements at a logical level, without regard for any particular IT implementation.
The DPM bridges the gap between business and IT languages, providing a common ground of understanding.
The DPM will be the source for the generation of XBRL taxonomies.
Slide18ITS on supervisory reporting - Proportionality
Reporting requirements shall be proportionate to the nature, scale and complexity of the activities of the institutions
Proportionality included in different ways:
Size of an institution
S
mall institutions are exempted for some templates (asset encumbrance)
Non-significant activities/exposures/risk
Threshold for level of exposure/activity (Geographical breakdown, derivatives in leverage ratio)
Inherent proportionality
Templates reported only if a special approach/method is used or if institution has exposures (SEC, SEC details, IRB)
Reduced frequency
T
emplates where reduced frequency provides adequate data (Group structure, detailed and contingent asset encumbrance)
Slide19Facilitating implementation – Q&A mechanism
Uniform interpretation of data requirements across EU
Detailed instructions included in the
ITS Annexes
Q&A tool on EBA website (as of July 2013)
Public can post their questions via a web tool
EBA will
Review, categorise and prioritise questions
Publish all answers
Translate answers
where necessary
Slide20Facilitating implementation – General timeline
Slide21Facilitating implementation – amendments of the ITS
Currently under consultation
Asset encumbrance
Forbearance and Non-performing loans (FINREP)
Liquidity monitoring tools
The ITS will be amended with these parts after the consultations
Application dates will be later than 1 January 2014
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