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