The European
Banking Authority
Wolfgang Strohbach
Outline
From CEBS to EBA
• Changes in the EU supervisory landscape
• EBA tasks and responsibilities
• EBA Reporting application
Technical Standard on uniform reporting formats
• Scope and content
• Timeline and deliverables
2
European System of Financial Supervision
EU central banks
EU supervisors
Joint Committee
ESRB
ESFS
EIOPA EBA ESMA
Macro
prudential
Micro
prudential
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European Systemic Risk Board
• The European Systemic Risk Board (ESRB) is an independent EU
body responsible for the macro-prudential oversight of the
financial system within the Union. Its seat is in Frankfurt am Main. Its
secretariat is ensured by the ECB.
• The ESRB contributes to the prevention or mitigation of systemic
risks to financial stability in the Union that arise from
developments within the financial system. It takes into account
macroeconomic developments, so as to avoid periods of
widespread financial distress.
EBA shall cooperate closely with the ESRB
• EBA to provide necessary information
• Follow up warnings and recommendations
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European Banking Authority
European Banking Authority
established 1 January 2011
• Regulation (EU) No 1093/2010 of
24 November 2011
• the EBA assumes all of the tasks and
competences of CEBS and additional
tasks.
• Seat in London
• Accountable to the European Parliament
and the Council
• Review Clause (2014 and all 3 years)
• Committee of European Banking
Supervisors (CEBS) was established in
Nov 2003, CEBS ltd. Dissolved in 2011
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The role of EBA – main objectives and tasks
Main objectives:
• Establishing EU single rule
book
• Promoting and enhancing
quality and consistency of
supervision
• Reinforcing oversight of crossborder groups
• Early warning of upcoming
vulnerabilities
• Effective early intervention and
bank resolution
Main tasks:
• Develop binding technical
standards, guidelines,
recommendations
• Promoting common
supervisory culture /
supervisory practices
• Peer group analyses and peer
reviews
• Monitoring effectiveness
colleges
• EU-wide risk assessments and
stress tests
• Risk dashboards
• Reacting on risk warnings
• Handling of emergency
situations
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EBA regulatory tasks
Common rulebook
Maximum harmonisation
...but proportionate to different financial institutions
EU Commission
Sectoral Directives
EBA
‘Implementing legislation’
CEBS/EBA role
provide advice
EBA issuing guidelines and
recommendations (as before)
Developing draft binding
technical standards
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Guidelines on Common Reporting (COREP)
Scope:
First released:
Solo and consolidated prudential
information collected by national
supervisors and based on EU
Basel II implementation (CRD –
2006/48/EC and 2006/49/EC)
January 2006
Objective:
• develop a common language for
communication in the context of a
common European framework
(convergence)
CRD II amendments – Jan 2010
Structure:
– core information (homogen)
– standardised supplemental
information (flexible)
– extentable
Implementation in EU:
– 27 countries
– 2/3 of content
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COREP rev3 – CRD III amendments
• Amendments stemming from CRD III
(resecuritisation, trading book)
•
 Templates affected:
• CA
• CR SEC SA, CR SEC IRB, SEC Details
• MKR SA TDI, MKR SA EQU, MKR IM, MKR IM Details
•
 Adding new templates
• MKR SA SEC, MKR SA CTP
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EBA oversight tasks
Risk assessment
Enhancing regular and ad hoc
thematic risk assessments
Stress testing
Building common
methodologies and
conducting EU-wide
stress tests
(in cooperation with ESRB)
Risk dashboard
Building a system of key risk indicators
(in cooperation with ESRB)
Colleges
Enhancing and supporting
effective
Functioning of colleges
Crisis management
Building capacity to handle
emergency situations
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EBA data collection
Referential Data
Business card
NSA
UPLOAD
COREP & FINREP
XBRL, XML, CSV files
DOWNLOAD
Business Feedback
&
Reminders
Portal
EBA
Administration
Data reception, first level checks, feedback
COREP & FINREP
XBRL
Reporting review
Validation
Reporting application
Business card
Standard
reports
Feedback
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Reporting requirements – problem identification
•
Findings from problem identification in Europe
1.
Legal differences: differences among national legislations (e.g. national
discretions of CRD) and differences in accounting rules among Member
States leading to diverging definitions
 CRD IV, EU Parliament and Council, EU Commission
2.
Reporting differences: Differences in the reporting templates (use of core
and details information), frequencies and remittance dates
 Technical standards on reporting, EBA Reporting networks
3.
IT differences: differences in the use of data standards for electronic filing
as well as in submission requirements
 IT standards, EBA XBRL network
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Technical Standards on Reporting
• CRD requirement (Omnibus Directive, Dec 2010)
Article 74 of Directive 2006/48/EC (new)
“In order to ensure uniform conditions of application of this Directive, for the communication
of those calculations by credit institutions, the competent authorities shall apply, from 31
December 2012, uniform formats, frequencies and dates of reporting. In order to ensure
uniform conditions of application of this Directive, EBA shall develop draft implementing
technical standards to introduce, within the Union, uniform formats (with associated
instructions), frequencies and dates of reporting before 1 January 2012.”
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Technical Standards on Reporting
• Legal status: Implementing technical standards
• Adoption by EU Commission via implementing acts in
form of regulation or decision
• Direct application – no further implementing regulation
on national level
• Scope: COREP, FINREP, Large Exposures
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Technical Standards on Reporting
• Reporting before…
Group A
Group B
and after…
Supervisor 1
Supervisor 2
Group C
Supervisor 3
Different templates and definitions
Several formats
Different technologies
Supervisor 1
Group A, B, C
Common
framework
Supervisor 2
Supervisor 3
Common templates and definitions
Single format
IT standards
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Technical Standards on Reporting
• Timeline for the development of technical standards on Reporting
that will be applicable starting 31/12/2012
Analysis of
commonality and
user test
2008/2009
Consultation of
streamlined
FINREP/COREP:
Consultation of BTS
by EBA:
Implementation
2012
Q3 2010
Q3 2009/ Q3 2010
Streamlining of
FINREP and
COREP
2009/2010
Development of draft
BTS by EBA
H1 2011
Endorsement of BTS
by EBA and adoption
by EU Commission
12/2011 – 03/2012
Application
from
31/12/2012
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Wolfgang Strohbach
wolfgang.strohbach@eba.europa.eu
Eurofiling –
Way forward
Timelines up to the end of 2011
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COREP
• Creation of the COREP taxonomy version 1.4.0 based on CRD III
for the reporting starting end 2011
• Review of the Data Point Matrix Schema based on harmonised
tables
• Revise the Data Point Matrix Schema for the changes on CRD IV
on basis of the streamlined tables
• Creation and publication of the taxonomies including the formula
linkbases in the end of 2011
• How to deal with proportionality?
• How to define the table representation?
Working targets for this year
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FINREP
• Update of the FINREP Data Point Matrix Schema based on
the changes in the streamlined tables
• How to deal with core and detailed tables?
• How to deal with proportionality?
• How to deal with cross-template dimensional definitions?
• Creation and publication of the taxonomies in the end of
2011
Working targets for this year
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• Definition of user-friendly error messages
•
Different approaches are under discussion
• Preparation of a rendering proposal for the visualisation of
multi-dimensional tables
• Dealing with a budget in the new organisation
• Alignment with EBA reporting requirements
•
Data exchange between EBA and national central banks
Current topics
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• Foster the creation of open-source tools
• Link with other XBRL projects (national and international, i.e. IFRS)
• Knowledge transfer by regular workshops, attendance at XBRL
International Conferences
• Provide proof of concept materials to entrepreneurs, developers,
academy and so on…
• Help to reduce the digital divide between countries in Europe and
overseas
• Providing “Best Practices” in European supervisory reporting
•
Dealing with administrative data
•
Preparation of recommendations on how to handle delta reports or
on how to deal with national extensions
General topics
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www.eba.europa.eu
www.eurofiling.info
Ignacio Boixo
+34 618526434
boixo@bde.es
Katrin Schmehl
+49 69 9566 6584
katrin.schmehl@bundesbank.de
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