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The European Banking Authority (EBA) published today its final draft Implementing Technical Standards (ITS) amending the European Commission's Implementing Regulation (EU) No 680/2014 on supervisory reporting so as to keep reporting requirements in line with changes in the regulatory framework and with the evolving needs for Supervisory Authorities’ risk assessments. The updated ITS include (i) new information on sovereign exposures; (ii) changes to operational risk; (iii) changes to additional monitoring metrics for liquidity and (iv) Q&A- based changes and other minor amendments. These changes form part of the EBA reporting framework version 2.7, which will be applicable for submissions of data as of March 2018.

The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) has published its spring 2017 Report on risks and vulnerabilities in the European Union’s financial system. The Report highlights the risks to the stability of the European financial sector in an environment subject to political and economic uncertainties. In particular, the protracted period of low profitability of banks and the difficulties faced by insurers to generate adequate returns to meet long-term liabilities in a low growth and low-yield environment remains a major challenge. In addition, the steepening of the yield curve may benefit earnings across all sectors but it also raises valuation concerns and, in the short term, may not be sufficient to alleviate the low profitability concerns. The Report also highlights the high valuation risk linked to search for yield strategies and repricing of risk premia. Rising operational risks related to information and communication technologies are increasingly requiring supervisory attention.