The European Banking Authority (EBA) has just published a new set of papers and technical documents around the execution of the new requirements for electronic submission of data (under updatedXBRL formats). Additionally, an ancillary pack of updates have been released, affecting the Prudential Regulatory Authority (PRA), Financial Conduct Authority (FCA), as well as other Member State Competent Authorities.
 

What has been updated?

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

Another fairly comprehensive pack that was released by the EBA over the weekend that encompassed the XBRL taxonomy for remittance of supervisory reporting by competent regulatory authorities (termed XBRL 2).

With this publication, the EBA have effectively replaced the former publication pertaining to XBRL taxonomy (previously released 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 that harnesses the underlying technical standards, in turn encompassing the capital requirements regulation.

eXtensible Business Reporting Language (XBRL) may be implemented across a multi-tiered layer of users, report preparers, and regulatory supervisors for filing supervisory returns. The main objective harbouring the incorporation of the taxonomy is to lower the collation, production and submission of information in a more timely and surgical manner, increasing quality of data and enriching advanced quantitative data analysis. Regulators concurrently can 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 reaching higher data qualities and attaining data aggregation at regional and national levels with far less effort.

The new package released by the EBA includes:

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.

Clarifications arising from EBA questions and answers in relation to the Single Rule Book may be accessed directly here. The portal contains a comprehensive channel for relevant stake holders to post, and 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 may help your organisation benefit from the automated collection of financial data for completing the supervisory and prudential return submissions, contact one of our respresentatives on 00356 21490700 or email sales@computime.com.mt