EBA consultation paper on draft ITS on reporting of large exposures

The EBA published today a consultation paper on a draft Implementing Technical Standard (ITS) on reporting of large exposures (CP51). The public consultation starts today and runs until 26 March 2012.

The consultation is open to all interested parties, including supervised institutions and other market participants.
All contributions received will be published on the EBA's website unless respondents request otherwise. Please send your comments to the following e-mail address: CP51@eba.europa.eu by 26 March 2012.

Main features of this ITS

This consultation paper puts forward a draft ITS on reporting of large exposures as requested by Article 383 of the Capital Requirements Regulation (CRR) and represents an addendum to the ITS proposal on supervisory reporting requirements published on the EBA's website on 20 December 2011.

This draft ITS aims at implementing uniform reporting requirements which are necessary to ensure fair conditions of competition between comparable groups of credit institutions and investment firms. Uniform requirements will ultimately make institutions more efficient and result in a greater convergence of supervisory practices.

The ITS on reporting has been developed on the basis of the guidelines on common reporting of large exposures. The draft ITS will be covering both (i) information needed to check institutions' compliance with the large exposure regime as set out in Articles 376 – 392 of CRR and (ii) information on concentration risk which competent authorities need to analyse as per Article 79 of the Capital Requirements Directive (CRD). The scope and level of application are in line with the CRR, currently under discussion by the EU legislators.
 
Next steps

The EBA intends to finalise the draft ITS and submit it to the Commission by 30 June 2012. It should be noted that the proposed submission date assumes that a final CRR will be available beforehand.

According to the European Commission proposals, institutions are required to comply with new CRR requirements as of 1 January 2013. Therefore, the first regular reporting period thereafter is expected to be Q1 2013 with the first reporting reference date being 31 March 2013. By 13 May 2013, institutions will then have to submit to national authorities a first set of data related to the reference date.

Background: CRD IV/CRR

This draft ITS is part of the CRR which sets out prudential requirements for institutions which are expected to be applicable as of 1 January 2013.

The CRR contains in a number of Articles specific mandates for the EBA to develop draft Implementing Technical Standards (ITS) related to supervisory reporting requirements.

These ITS will be part of the single rulebook enhancing regulatory harmonisation in Europe with the particular aim of specifying uniform formats, frequencies and dates of prudential reporting as well as IT solutions to be applied by credit institutions and investment firms in Europe.