The European Banking Authority (EBA) published today a corrective update (2.4.1) to the XBRL taxonomy that Competent Authorities shall use for the remittance of data under the EBA Implementing Technical Standards (ITS) on supervisory reporting. The revised taxonomy will be used for the first reports under the revised Liquidity Coverage Ratio (LCR) and Leverage Ratio (LR) requirements resulting from Delegated Acts of the European Commission.
This update is a modification of the previously published 2.4 taxonomy, which it replaces. It corrects a technical error in the reportable content of individual COREP reports and errors in the XBRL implementation of some validation rules.
The documents published today include the following:
A set of XML files forming the XBRL taxonomy;
A description of the architecture of the XBRL taxonomy;
A description of the Data Point Model (DPM), of which the taxonomy is a standardised technical implementation, including both a database and document representations, along with a description of the formal modelling methodology by which the DPM is defined.
All reports that were previously envisaged to be remitted under the taxonomy set 2.4 will have to use the corrected taxonomy 2.4.1, which is related to the September 2015 framework release Since the amended LCR and LR ITS will apply 6 months from the date of their publication in the Official Journal, the 2.4.1 taxonomy will apply for reference dates following their point of application – as was the case with the 2.4 taxonomy - provided this is prior to December 2016. It should be noted that this same application date will apply to the whole 2.4.1 taxonomy set, including reports other than LCR and LR. The new LCR templates are applicable to credit institutions and not to investment firms. The latter will continue reporting the LCR items using the 2.4.1 multicurrency version of the current LCR templates.
Background and legal basis
The taxonomy defines a representation for data collection under the reporting requirements related to own funds, financial information, losses stemming from lending collateralised by immovable property, large exposures, leverage ratio, liquidity ratios, asset encumbrance, additional liquidity monitoring metrics, supervisory benchmarking and funding plans. As part of enhancing regulatory harmonisation in the EU banking sector and facilitating cross-border supervision, uniform data formats are necessary to enable comparable data on credit institutions and investment firms across the EU.
Although, the EBA XBRL taxonomy was primarily developed for data transmission between Competent Authorities and the EBA, many authorities have been using it for the collection of supervisory reporting from the credit institutions and investment firms they supervise. In this respect, the taxonomy proposed by the EBA will lead to greater efficiency and convergence of supervisory practices across Members States. In addition, it will facilitate the supervisory process, allowing supervisors to identify and assess risks consistently across the EU and to compare EU banks in an effective manner.