CEBS harmonises reporting framework for European financial groups

16 December 2005

The Committee of European Banking Supervisors (CEBS) today published guidelines establishing a standardised financial reporting framework (FINREP) for credit institutions operating in the EU. This framework will enable credit institutions to use the same standardised data formats and data definitions for prudential reporting in all countries where the framework will be applied. CEBS believes that this will reduce the reporting burden for credit institutions that operate cross-border, and lower barriers to the development of an efficient internal market in financial services.

FINREP is designed for credit institutions that use International Financial Reporting Standards (IFRS) for their published financial statements, and that have to provide similar information in the periodic reports they are required to submit to their supervisory authorities. The introduction of international accounting and reporting standards provides an opportunity to converge and ultimately harmonise prudential reporting in Europe.

While convergence in supervisory practices is one of CEBS' declared objectives, CEBS cannot be expected to achieve full harmonisation of prudential financial reporting requirements overnight. The information needs of national supervisors vary from country to country depending on their approach to prudential supervision. However, the consolidated financial reporting framework set forth in these guidelines represents an important step towards harmonisation and convergence in Europe.

CEBS has accommodated most of the concerns expressed by industry in the public consultation. The volume of data requested has been reduced almost by half. The framework has been linked as much as possible with the common framework for reporting the solvency ratio (COREP) under the Capital Requirements Directive (CRD).

The use of the framework is not mandatory. Some supervisors do not collect financial information by means of periodic prudential reports and do not plan to apply the framework to supervised credit institutions. However, once it is applied, supervisors should, at a minimum, require the core information.

National supervisors are furthermore free to decide on the technical aspects involved in implementation. CEBS considers, however, that XBRL (Extensible Business Reporting Language) can be a helpful tool in constructing a harmonised European reporting system. CEBS is developing an XBRL taxonomy, which will be made available without cost to national authorities and supervised credit institutions.

CEBS will monitor the implementation of the framework by member states, and will adapt the framework as necessary to address issues that arise from the practical aspects of implementation or from new developments in IAS/IFRS or prudential supervision.

Opinion on the recommendations of the High-level Expert Group on reforming the structure of the EU banking sector

14 December 2012

The European Banking Authority (EBA) has adopted an Opinion on the recommendations of the High-level Expert Group on reforming the structure of the EU banking sector.

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The European Banking Authority (EBA) published today its Opinion on the Commission's Services consultation

03 March 2011

The European Banking Authority (EBA) published today its Opinion on the Commission's Services consultation regarding technical details of a possible EU framework for bank recovery and resolution.

CEBS's advice on e-Money

01 July 2005

CEBS has provided the Commission with technical advice on the application of the E-Money Directive. 

3L3 chairs' join letter to EU institutions submitting draft work programmes

28 February 2008

Today the 3 Level 3 Committees publish their Joint Response to the European Commission's Public Consultation Paper on Amendments to Commission Decisions establishing CESR, CEBS and CEIOPS.

01 September 2008

CEBS organises open workshop on valuation issues

23 September 2008

 

The Committee of European Banking Supervisors CEBS organises an open workshop in London on 23 September 2008 from 14:00 to 16:30 to discuss the findings of the Report on Issues regarding the Valuation of Complex and Illiquid Financial Instruments published on 18 June 2008. This workshop will provide an opportunity for banks and other interested parties to express their views on the issues raised by CEBS and to discuss ways of addressing them.

Registrations should be received by Wednesday 10 September 2008.

Compendium of Supplementary Guidelines on implementation issues of operational risk

19 December 2008

CEBS develops a standardised financial reporting framework

07 April 2005

 

The Committee of European Banking Supervisors (CEBS) is pleased to announce today's publication of the second of its public consultations on prudential reporting requirements for credit institutions. This consultation focuses on the development of a standardised consolidated financial reporting framework for credit institutions. The first consultation (published January 2005) focussed on defining a common reporting framework for the solvency ratio under the future EU Capital Requirements Directive (CRD).

 

The consolidated financial reporting framework is designed to be consistent with international accounting standards (IAS/IFRS). Its objective is not, however, to cover all aspects of IAS/IFRS standards. It is intended for use by EU supervisory authorities when they ask credit institutions to submit consolidated financial information prepared in accordance with IAS/IFRS.

It is not the intention of CEBS to impose additional reporting requirements, but rather to create a common financial reporting framework that will reduce administrative burden on cross-border banking groups and contribute to removing a potential obstacle to financial market integration. The data elements detailed within the framework should already be available in credit institutions' accounting systems, since they are required for the compilation of the institutions' published financial statements. The framework's objective is to streamline the reporting process for supervisory purposes and thereby to increase the cost-effectiveness of supervision across the EU.

CEBS recognises that work on the financial reporting framework should be linked with the framework for common reporting of the solvency ratio–which is currently under public consultation—in order to avoid undue costs and inconsistencies in supervisory reporting. CEBS commits to undertake these two projects in a co-ordinated fashion.

Additional steps to promote further convergence towards a system of regular supervisory reporting that strikes a proper balance on the degree of detail of the information requested will be considered in due course.

CEBS invites comments on all matters addressed in the consultation documents. Comments should be made in English and should be submitted by 8 July 2005 to CP06@c-ebs.org. Unless respondents request otherwise, comments received will be published on the CEBS website.

 

Memorandum of understanding on co-operation in financial crisis situations

14 May 2005

1. The banking supervisory authorities, the central banks and the Finance Ministries of the European Union (EU) have agreed on a Memorandum of Understanding on co-operation in financial crisis situations (hereinafter referred to as the "MoU"). The full list of the authorities which have endorsed this MoU is included in the Annex to this press release. The MoU shall enter into effect on 1 July 2005. The MoU agreement will not be a public document.

2. The increasing integration of markets and market infrastructures in the EU's single financial market promotes financial stability since a larger and more diversified financial system will be better able to absorb potential financial shocks, and possibly to prevent them through wider risk management resources. At the same time, financial market integration and the growing number of cross-border financial institutions, may also increase the scope for cross-border contagion and thus the potential magnitude of a systemic crisis affecting more than one Member State. In this context, it is important to further enhance the practical arrangements concerning co-operation in cross-border crisis situations at the EU level among the authorities potentially involved in preserving financial stability. Against this background, the MoU - as a building-block for such practical arrangements - will apply to crisis situations with a potential for both cross-border and systemic impact affecting individual credit institutions, banking groups or banking components of financial groups, as well as to other possible systemic disturbances with cross-border implications in the financial markets, including those affecting payment systems or other financial market infrastructures.

3. Building on the existing EU and national legislation and arrangements, the MoU aims at supporting and promoting co-operation in crisis situations between banking supervisors, central banks and finance ministries. The MoU consists of a set of principles and procedures for sharing information, views and assessments, in order to facilitate the pursuance by these authorities of their respective policy functions and preserve the overall stability of the financial system of individual Member States and of the EU as a whole. In particular, these authorities should be in a position, if needed, to engage in informed discussions amongst themselves at the cross-border level - on the basis of existing networks and committees - in the case of crisis situations affecting the financial system of more than one Member State or the EU as a whole. In cases where EU-wide multilateral co-operation among authorities might be needed, the existing EU committees may, within the scope of their role and tasks, be utilised for facilitating the process of exchange of information, views and assessments, along with the central role of the consolidating supervisor, especially for the dissemination of information among interested parties.

4. The principles and procedures contained in the MoU deal specifically with the sharing of information, views and assessments among the authorities potentially involved in a crisis situation, the appropriate procedures for such sharing of information and the conditions for cooperation and information flow at the national and cross-border level. In order to further support the enhanced cross-border co-operation between authorities, the MoU also includes arrangements for the development, at the national and EU level, of contingency plans for the management of crisis situations, along with stress-testing and simulation exercises.

5. The Memorandum of understanding should not be construed as representing an exception to (i) the principle of the firm's owners'/shareholders' primary financial responsibility, (ii) the need for creditor vigilance, and (iii) the primacy of market-led solutions to solve a crisis situation in individual institutions.

6. An MoU is a non-legally binding instrument for setting forth practical arrangements aimed at promoting co-operation between authorities in crisis or potential crisis situations without overriding their respective institutional responsibilities or restricting their capacity for independent and timely decision-making in their respective fields of competence, notably with regard to the conduct of day-to-day central banking and supervisory tasks, as set out in national and Community legislation.

7. Crisis situations may in practice involve a wider range of authorities and respective functions, including other financial supervisory authorities, deposit insurance schemes and competition policy authorities, and the MoU is without prejudice to further co-operation arrangements involving a wider range of authorities. Although certain crises may require international co-operation with authorities whose jurisdiction lies outside the EU, the MoU does not deal with such co-operation at present.

8. The MoU complements and is without prejudice to other co-operation arrangements especially between banking supervisors and central banks, in particular the Memorandum of Understanding on high-level principles of co-operation between the EU banking supervisors and central banks in crisis management situations (www.ecb.int/press/pr/date/2003/html/pr030310_3.en.html) adopted in 2003. The main difference between the 2003 MoU and the new MoU relates to its scope. While the former deals with co-operation between EU banking supervisors and central banks only, the latter addresses co-operation involving the EU Finance Ministries as well. Both MoUs are applicable to cross-border systemic crises but the 2003 MoU also deals with stages of detection and activation of specifically supervisory and central banking tools in financial crises.

ANNEX

Parties to the Memorandum of Understanding:

Banking Supervisory Authorities

Finanzmarktaufsicht, Austria
Commission bancaire, financière et des assurances/Commissie voor het Bank-, Financie- en Assurantiewezen, Belgium
Κεντρική Τράπεζα της Κύπρου
Ceská národní banka
Finanstilsynet, Denmark
Finantsinspektsioon, Estonia
Rahoitustarkastus, Finland
Commission Bancaire, France
Bundesanstalt für Finanzdienstleistungsaufsicht, Germany
Deutsche Bundesbank
Τράπεζα της Ελλάδος
Pénzügyi Szervezetek Állami Felügyelete, Hungary
Irish Financial Services Regulatory Authority
Banca d'Italia
Finansu un Kapitala Tirgus Komisija, Latvia
Lietuvos bankas
Commission de Surveillance du Secteur Financier, Luxembourg
Malta Financial Services Authority
De Nederlandsche Bank
Komisja Nadzoru Bankowego, Poland
Banco de Portugal
Národná banka Slovenska
Banka Slovenije
Banco de España
Finansinspektionen, Sweden
Financial Services Authority, United Kingdom

Central Banks

Oesterreichische Nationalbank
Nationale Bank van België/Banque Nationale de Belgique
Ceská národní banka
Κεντρική Τράπεζα της Κύπρου
Danmarks Nationalbank
Eesti Pank
Suomen Pankki - Finlands Bank
Banque de France
Deutsche Bundesbank
Τράπεζα της Ελλάδος
Magyar Nemzeti Bank
Central Bank and Financial Services Authority of Ireland
Banca d'Italia
Latvijas Banka
Lietuvos bankas
Banque centrale du Luxembourg
Central Bank of Malta
De Nederlandsche Bank
Narodowy Bank Polski
Banco de Portugal
Národná banka Slovenska
Banka Slovenije
Banco de España
Sveriges Riksbank
Bank of England
European Central Bank

Finance Ministries

Bundesministerium für Finanzen, Austria
Service Public Fédéral Finances, Belgium
Υπουργείο Οικονομικών, Cyprus
Ministerstvo Financí, Czech Republic
Finansministeriet, Denmark
Eesti Vabarigiigi Rahandusministeerium, Estonia
Valtiovarainministeriö, Finland
Ministère de l'Économie des Finances et de l'Industrie, France
Bundesministerium der Finanzen, Germany
Υπουργείο Οικονομίας και Οικονομικών, Greece
Pénzügyminisztérium, Hungary
Department of Finance, Ireland
Ministero dell'Economie e delle Finanze, Italy
Finansu Ministrija, Latvia
Lietuvos Respublikos Finansu Ministerija, Lithuania
Ministère des Finances, Luxembourg
Ministeru tal-Finanzi, Malta
Ministerie van Financiën, the Netherlands
Ministerstwo Finansów, Poland
Ministério das Finanças e da Administração Pública, Portugal
Ministerstvo Financií, Slovakia
Ministrstvo za finance, Slovenia
Consejería de Economía y Hacienda, Spain
Finansdepartementet, Sweden
HM Treasury, UK