Last week (28 May 2019) the European Banking Authority (EBA) published draft amendments to the Implementing Technical Standards (ITS) on supervisory reporting.
The amendments affected certain aspects of COREP and Liquidity reporting, as well as resolution planning reporting.
The draft ITS will be submitted to the European Commission for endorsement before being published in the EU’s Official Journal.
When will Taxonomy 2.9 be implemented?
Once published, the new requirements under Taxonomy 2.9, will be applicable for first reporting reference dates of 31 March 2020 for COREP reporting changes, 30 April 2020 for changes relating to liquidity (LCR and ALMM) and for resolution planning, 31December 2019.
In summary, the Amendments to the ITS include:
COREP: amendments to reflect the new securitisation framework;
Clarifications and corrections as regards reporting on COREP and additional liquidity monitoring metrics (ALMM); and
Liquidity Coverage Requirement (LCR): amendments in response to the LCR Delegated Act.
Taxonomy 2.9: Why is COREP reporting changing again?
The significant changes to the European securitisation framework now call for a more fundamental change to the EBA COREP template to ensure reporting is aligned and produces the most efficient and effective way for data to be disseminated and as a result ensures that it can be used in a reliable way.
The current reporting framework, Taxonomy 2.8 was brought in in December last year for a transitional period of one year and was done so partly to help reflect the new European securitisation framework that was introduced in January 2018. At the time, the EBA swiftly amended the COREP templates “to allow at least the minimum level of information needed under the new framework to be reported”. Thus changes under taxonomy 2.8 saw additional rows being added temporarily, to COREP template C 02.00. However, this additional information is not considered granular enough (e.g. at present there is no versus off-balance sheet information) to get a complete picture of the entire revised securitisation framework and therefore further revisions are required to be introduced, hence taxonomy 2.9.
The proposed amendments to COREP include:
Changing the reporting templates, in particular merging the SA and IRB templates (templates C 12.00 and C 13.00) in order to fully align them with the revised securitisation framework, and changing the content of C 14.00 and C 19.00-C 20.00.
Changes look set to improve the level of information and granularity in the COREP templates (C 12.00-C 14.00).
The transitional rows in template C 02.00, as introduced in taxonomy 2.8, would be removed.
To read the EBA’s Draft Implementing Standards amending Implementing Regulation (EU) No 680/2014 with regard to COREP, click here.
Taxonomy 2.9 applicable for first reporting reference dates of 31 March 2020