The European Banking Authority (EBA) recently published a new set of papers and technical documents around the execution of the new requirements for electronic submission of data (under updated XBRL formats). Such changes are typically adopted in similar form by other financial institutions.
An ancillary pack of updates was also released and those affect the Prudential Regulatory Authority (PRA), Financial Conduct Authority (FCA) and other Member State Competent Authorities.
What is changed?
Corrigendum to Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 were released on the last day of November 2013, and encompass a 337 page document providing an updated legislation to the preceding CRD and CRR publications.
What will this affect?
The impact of this corrigendum will affect the:
• Definitions of Eligible Capital – Definition 71
• Definition of Leverage – Definition 93
• Adjustments to dates when EBA are mandated to do things, and:
• Page 36, Article 26 (3) issuances
• Page 37, Article 26 (3) non-state aid capital instruments
• Page 62, Article 84 (5) dates re parent financial holding company
• Page 232, Article 395 (6) Large Exposures Limits
• Page 274, Article 478 (2) re applicable percentages for deduction from Common Equity Tier 1, Additional Tier 1 and Tier 2 items – changes to the date to taper to 100% by 2024
• Page 281 Article 493 (3) brings forward deadline for transition period to 31/12/2028
A further comprehensive pack was released by the EBA over the weekend which encompasses the XBRL
taxonomy for remittance of supervisory reporting by competent regulatory authorities (termed XBRL 2). With this publication, the EBA has in effect replaced the former publication pertaining to XBRL taxonomy ( which was released previously on the 19thSeptember 2013). All other papers in relation to the implementation of just over 110 technical standards (ITS) 1/2/3 remain largely unchanged.
This new XBRL 2 provides a fixed mechanism into the technical standards that will impact electronic report submissions by the credit institutions to the various competent authorities.This taxonomy incorporates the definition of a data point model to harness the underlying technical standards, which in turn encompass the capital requirements regulation.
In the context of filing supervisory returns, the eXtensible Business Reporting Language (XBRL) may be implemented across a multi-tiered layer of: users, report preparers, and regulatory supervisors. The main objective behind the incorporation of the taxonomy is to:
• lower the: collation, production and submission of information in a more timely and surgical manner
• increase the quality of data
• to enrich advanced quantitative data analysis.
Regulators concurrently will benefit from the adoption through: simplified programming, facilitated validation, and greater flexibility in getting changes made to submissions. This in turn will make manual processing redundant, as more institutions and their respective authorities move closer to higher data qualities and attain data aggregation at regional and national levels with far less effort.
The new package released by the EBA includes:
• COREP and FINREP XBRL Taxonomy v2.0.0
• Various explanatory documentation
• EBA XBRL Filing Rules for v2.0.0
• DPM Database (MS Access table) and descriptions with accompanying definitions and
dictionaries
• DPM architecture diagrams and documents with updated validations
• XBRL Taxonomy together with accompanying Change Log
• Skeleton Instances
Pending publications of the ITS and DPM in the Official Journal seems to be attributed to the ongoing work required in translating the various legal regional Member State documentation. Following such release, in reaching a go-live date to report as at 31/03/2014, the EBA will include a release of the Finalised ITS along with the their respective reporting instructions, updated templates and validations, data point model underlying the final XBRL taxonomy.
The portal contains a comprehensive channel for relevant stake holders both to post, and to receive answers in relation to Directive 2013/36/EU (the Capital Requirements Directive or CRD), and Regulation (EU) No 575/2013 (the Capital Requirements Regulation or CRR).
Following this, it is expected that the EBA will announce publication dates of when Asset Encumbrance, Non-Performing Loans and Forbearance Data will be added to the Data Point Model, following which dates for new liquidity requirements should ensue.
For more information on how BRSANALYTICS can help your organisation benefit from the automated collection and processing of financial data for completion of the supervisory and prudential return submissions contact us and ask for Hasan 043365589.