- These technical standards are crucial as they allow supervisors to monitor institutions’ compliance with the Capital Requirements Regulation (CRR3) implementation of the latest Basel III reforms in the EU and will foster consistent and enhanced supervision.
- The new standards introduce or amend supervisory reporting requirements on output floor, credit risk, market risk, credit valuation adjustment (CVA) risk, operational risk, leverage ratio and a transitional supervisory reporting on exposures to crypto-assets.
The European Banking Authority (EBA) today published its final draft implementing technical standards (ITS) on supervisory reporting requirements implementing the changes necessary to keep the supervisory reporting framework relevant and meaningful and aligned with the amending CRR 3, which implements the latest Basel III reforms. These ITS will allow supervisors to have sufficient comparable information to monitor compliance by institutions with CRR 3 requirements, thus further promoting enhanced and consistent supervision.
These ITS update the EBA supervisory reporting framework by including new or amended CRR3 requirements on ion the output floor, credit risk, market risk, CVA risk, leverage ratio and on the transitional treatment of exposures to crypto-assets. On operational risk, these ITS include some minimum reporting requirements based on the consultation launched in February 2024, while the more extensive reporting requirements on this topic will be finalised by the end of this year, together new framework for the business indicator for operational risk that was consulted in parallel.
These ITS are the first supervisory reporting deliverable included in the EBA Roadmap on strengthening the prudential framework published in December 2023. The EBA will complement these ITS with the CRR 3 supervisory reporting requirements that are not directly linked to Basel III implementation in subsequent products.
To facilitate the preparation and use of Pillar 3 data, the EBA is also publishing:
- an updated mapping tool between the revised disclosure templates published on 21 June 2024 and the reporting templates;
- a summary of all the Pillar 3 disclosure requirements and their respective frequency.
Next steps
Following the mandate for the EBA to develop IT solutions, these ITS will eventually repeal the Commission’s Implementing Regulation (EU) 2021/451, with a view to making the technical standards more user-friendly for institutions. The IT solutions according to which supervisory reporting data has to be provided, including templates and instructions, can be found on the EBA website.
The EBA will publish during Q4 2024 a technical package, including the DPM, validation rules and taxonomy, that shall be used by institutions to submit this supervisory reporting information to supervisors.
Legal basis and background
Regulation (EU) No 575/2013 (‘the CRR’) as amended by Regulation (EU) 2024/1623 (‘CRR 3’) mandates the EBA, in article 430(7), to develop draft implementing technical standards to specify uniform reporting formats, and IT solutions, including instructions, for supervisory reporting requirements of institutions.
The CRR 3 implements the latest Basel 3 reforms, which strengthen the EU institutions’ prudential framework, including also the related new and amended supervisory reporting requirements for institutions.
Following article 430(7), new draft ITS have been developed that implement changes to the supervisory reporting framework necessary following the CRR3 and replace the Commission Implementing Regulations (EU) 2021/451. The new ITS take into account the delay in the application of the FRTB capital framework.
When developing these ITS, the EBA has sought alignment and integration between the reporting and disclosure frameworks, to facilitate institutions’ compliance with both requirements.
