EBA’s latest version of the New Reporting Framework V3.1
The European Banking Authority (EBA) is a decentralized agency responsible for regulating banks through Implementing Technical Standards (ITS). EBA regulatory body conducts stress tests to make reporting more transparent and promote convergence and synchronization of prudential rules.
The stability of the EU and its nations is dependent on banks being solvent. Hence, since 2006 the Committee of Banking Supervision (CEBS) has formed standard reporting framework guidelines to supervise critical data, compare reported financial information, and eliminate barriers to possible market integration.
As part of the CRD and CRR mandates, the EBA first introduced two primary reporting requirements: COREP (Common Reporting) and FINREP (Financial Reporting). The EBA also developed a Data Point Model, a constantly updating dictionary of uniform definitions within the reporting and disclosure guidelines.
In the years that followed, multiple advancements and new financial data inputs have necessitated version upgrades in these reporting frameworks that were introduced.
In this blog, we will summarize the key points to note with regards to the latest version – Reporting Framework V3.1.
What is Reporting Framework V3.1?
It is the latest version of reporting mandates that EBA has introduced. It is to be followed from September 2021. This update follows the reporting framework 3.0 and the implementing technical standards (ITS) to institutions’ Basel III Pillar 3 public disclosures.
Who has to report under Reporting Framework V3.1?
Investment Firms and banks under EBA regulatory body are required to report using this new reporting framework.
What’s New in Reporting Framework V3.1?
The EBA reporting framework v3.1 specifies the mapping between quantitative disclosure data points and relevant supervisory reporting data points and aims to help institutions comply with disclosure requirements and improve the consistency and quality of the information disclosed. Changes mainly drive the updates included in this version during the ITS adoption process on supervisory reporting and the ITS on public disclosures.
- It includes the following new and amended reporting requirements:
- New reporting requirements for investment firms (ITS on investment firms reporting and disclosure and RTS on reporting of thresholds for investment firms)
- Changes to resolution planning reporting
- Changes to the ITS on Supervisory benchmarking
At DataTracks, we have developed a RegTech on-cloud solution to facilitate automated regulatory reporting for banks and investment firms in a precise, cost-effective, and swift manner. As an end-to-end reporting solution, it will assist financial firms in saving more than 30% of their time in meeting mandatory regulatory reporting requirements prescribed by the EBA.