Phase 2 of the Technical Package on Reporting Framework 2.10 Released by the EBA
To improve and ease the issuers’ reporting structure, the European Banking Authority (EBA) continuously works towards improvements and updates in their regulations. Considering this and the current crisis due to COVID-19, the EBA recently released phase 2 of its technical package on the reporting framework 2.10. This update lays down the technical tools and specifications for the implementation of EBA reporting requirements. The package encompasses validation rules, the DPM (Data Point Model) Dictionary, and XBRL taxonomies.
Further, the EBA’s reporting framework 2.10 encompasses amendments in three packages. Additionally, these amendments to the reporting framework will apply from different reference dates due to different application dates of the EBA’s underlying regulatory requirements.
The major update to the previous version of the reporting framework relate to the following:-
Changes that will be applicable from 31st December 2020:
- Improved guidelines on funding plans
- Integration of the remuneration benchmarking templates into DPM and XBRL taxonomies
- Integration of fraudulent payments into the DPM as well as XBRL taxonomies
- Necessary technical amendments on the resolution framework
What’s New with the EBA’s Technical Package on Reporting Framework?
The new reporting framework reflects the following changes:-
- New EBA Guidelines on COVID-19 Measures for Reporting and Disclosure, Applicable from 30th June 2020
With the intent of supporting businesses facing operational and liquidity challenges due to the Coronavirus outspread, the EBA is implementing a broad range of measures such as legislative moratoria on loan repayments and public guarantees in member states. These guidelines have been developed to address data discrepancies associated with such measures to ensure an in-depth understanding of the institutions’ risk profile and the asset quality on financial statements for both supervisors as well as the public.
- Update on the Release of the ITS package for 2021 Benchmarking Exercise, Applicable from September/December 2020
Adjusting the benchmarking portfolios and reporting requirements became more prevalent than ever due to the current Covid-19 crisis, which is why the EBA decided to exercise benchmarking new reporting requirements in 2021. As far as the credit risk side is concerned, the introduction of IFRS 9 templates and the correction of risk-weighted exposure value (RWA) will allow borrowers to effectively complement the analysis of credit risk models. On the other hand, with the consultation being restricted to clarification on the setting of reference dates and instrument definitions, the framework remains stable on the market risk side.
- Update to the DPM and Validation Rules
Minor revisions and updates have also been made to the DPM, validation rules, and XBRL taxonomies concerned with resolution planning reporting and reporting on funding plans, which will be applicable from December 2020.
Stay on Top of the Reporting Framework
EBA is striving to make lives easy for businesses by continuously updating its regulations. However, staying on top of all these new regulations can be challenging. A commendable partner like DataTracks by your side will not only help your company comply with the EBA’s new regulations but also leverage the benefits of this latest update. To know more about how DataTracks can help, speak to an expert @+44 (20) 3608 1300.
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