Feedback statement
Responses to the public
consultation on the draft
European Central Bank
regulation on reporting of
supervisory financial
information
March 2015
This document consists of the sections listed below.
A. Overview and analysis of responses
B. Rationale for and scope of the European Central Bank (ECB) Regulation on
reporting of supervisory financial information
C. Analysis of costs and benefits
D. Legal basis
E. Comments on specific parts of the draft ECB regulation on reporting of
supervisory financial information
F. Amendments to the draft ECB regulation on reporting of supervisory financial
information
This document is intended to give an overview of the comments received during the
public consultation from 23 October to 4 December 2014 on the draft ECB regulation
on reporting of supervisory financial information and to present an assessment of
those comments. It explains the amendments made to the draft regulation as a result
of the consultation. As such, this document does not prejudge the future
interpretation of the provisions laid down in the ECB Regulation on reporting of
supervisory financial information.
© European Central Bank, 2015
Postal address
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Telephone
+49 69 1344 0
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www.ecb.europa.eu
All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged.
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
2
A
Overview and analysis of responses
1. On 23 October 2014, the ECB launched a public consultation on a draft ECB
regulation on reporting of supervisory financial information that lays down the
rules and procedures concerning reporting of supervisory financial information.
The consultation ended on 4 December 2014. Besides inviting written
comments, the ECB gave the general public an opportunity to provide input at a
public hearing held in Frankfurt on 13 November 2014. Building on the feedback
received from all respondents, the ECB has amended a number of features in
its proposal.
2. A total of 21 responses were received, mostly in English. The comments are
available on the ECB’s website:
https://www.bankingsupervision.europa.eu/legalframework/publiccons/html/r
eporting.en.html Responses were submitted by credit and financial institutions,
market and banking associations, public authorities and private entities,
constituting a broad representation of relevant stakeholders. Table 1 shows the
breakdown of responses by type of respondent.
Table 1
Type of contributor
Number
Banking and market associations
16
Credit and financial institutions
2
Public authorities
1
Private entities
2
Total contributions
21
3. Following the closure of the consultation, the ECB analysed and gave due
consideration to all comments received. This feedback statement presents an
assessment of these comments. In the sections below, for each topic, short
summaries of the comments received (presented in italics) precede the ECB’s
76%
9%
5%
10%
Banking and market associations
Credit and financial institutions
Public authorities
Private entities
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
3
assessment. For ease of understanding, references to specific provisions of the
ECB Regulation on reporting of supervisory financial information are based on
the draft published for public consultation on 23 October 2014. In completing the
ECB Regulation on reporting of supervisory financial information, the ECB gave
due consideration to all comments received, also taking further input from within
the SSM into account. A table summarising those amendments is included in
Section F.
4. Following the analysis, the feedback statement and an amended draft regulation
were forwarded to the Governing Council of the ECB. On 17 March 2015 the
Governing Council adopted the ECB Regulation on reporting of supervisory
financial information. The Regulation was published on the ECB’s website on 26
March 2015 together with this feedback statement.
B
Rationale for and scope of the ECB
regulation on reporting of supervisory
financial information
5. The Single Supervisory Mechanism (SSM) was established by Council
Regulation (EU) No 1024/20131 that entered into force on 3 November 2013.
The ECB assumed its SSM-related tasks on 4 November 2014.
6. At present, supervisory financial reporting is only mandatory for institutions
applying International Financial Reporting Standards (IFRS) at the consolidated
level. The ECB Regulation on reporting of supervisory financial information
extends the regular reporting of supervisory financial information to the
consolidated reports of banks under national accounting frameworks
(‘nGAAPs’), as well as to reports compiled on an individual basis. This
extension covers all supervised entities subject to own funds requirements
pursuant to Regulation (EU) No 575/20132 (the Capital Requirements
Regulation (CRR)). However, in accordance with the proportionality principle,
1
Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European
Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287,
29.10.2013, p. 63).
2
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on
prudential requirements for credit institutions and investment firms and amending Regulation (EU) No
648/2012 (OJ L 176, 27.6.2013, p. 1).
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
4
less significant supervised entities3 will be subject to reduced reporting
requirements and be given more time for implementation.
7. It is important to recall that, within the SSM, the ECB is responsible for the direct
supervision of significant supervised entities, whereas the national competent
authorities (NCAs) are responsible for the direct supervision of less significant
supervised entities. However, the ECB is able to issue general instructions to
the NCAs with regard to the supervision of less significant supervised entities
and has investigatory powers over all supervised entities.
8. In order to carry out its supervisory tasks effectively, the ECB must collect
adequate, regular (i.e. at recurring intervals) and standardised (i.e. in specified
formats) data, in particular regarding financial information.
9. The ECB and the NCAs have the ability to exercise their supervisory powers
concerning reporting of information not covered by Regulation (EU) No
680/2014.4 The purpose of the ECB Regulation on reporting of supervisory
financial information is to address these data needs.
10. Regulation (EU) No 680/2014 on supervisory reporting consists of the following
components:
• common reporting (‘COREP’) covering own funds, capital requirements,
large exposures, liquidity and stable funding, as well as leverage and
losses stemming from lending collateralised by immovable property,
• financial reporting (‘FINREP’) for institutions applying IFRS at the
consolidated level, including forbearance and non-performing exposures
reporting.
• asset encumbrance,
11. Under Regulation (EU) No 680/2014, financial reporting is mandatory for
significant and less significant supervised groups (i.e. supervised entities
reporting on a consolidated basis) applying IFRS. In this regard, the extension
by the ECB Regulation on reporting of supervisory financial information of the
reporting requirements for such information developed by the European
Banking Authority (EBA) should ensure consistency and comparability among
the supervised entities established in the participating Member States.
12. The ECB Regulation on reporting of supervisory financial information seeks to:
3
‘Supervised entities’ comprise credit institutions established in the participating Member States and
branches established in a participating Member State by a credit institution established in a non-
participating Member State. The distinction between ‘significant’ and ‘less significant’ supervised entities
is laid down in Article 6(4) of the SSM Regulation and Part IV of the SSM Framework Regulation
(Regulation (EU) No 468/2014 of the European Central Bank of 16 April 2014 establishing the
framework for cooperation within the Single Supervisory Mechanism between the European Central
Bank and national competent authorities and with national designated authorities (SSM Framework
Regulation) (ECB/2014/17) (OJ L 141, 14.5.2014, p. 1)).
4
Commission Implementing Regulation (EU) No 680/2014 of 16 April 2014 laying down implementing
technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No
575/2013 of the European Parliament and of the Council (OJ L 191, 28.6.2014, p. 1).
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
5
• extend the uniform supervisory financial reporting requirements to
significant supervised groups applying nGAAPs,5
• specify the supervisory financial information to be provided to the ECB by
significant supervised entities reporting on an individual basis under either
IFRS or nGAAPs,6 including branches of non-SSM credit institutions
established in a participating Member State and subsidiaries of significant
supervised groups in non-participating Member States or third countries,
• specify the supervisory financial information to be provided to the ECB
regarding less significant groups under nGAAPs and less significant
supervised entities.7
13. The ECB Regulation on reporting of supervisory financial information covers
reporting requirements for supervised entities and sets out rules relating to the
submission of information by the NCAs to the ECB.
14. In describing the requirements of the ECB Regulation on reporting of
supervisory financial information, the following should be noted:
(a) A distinction needs to be made between significant and less significant
supervised entities.
(b) It is important to consider the level of application of the requirements –
whether they apply at the consolidated level, at the solo level (i.e. on an
individual basis when the report refers to a single legal entity), or at the
branch level (i.e. the report includes the activities of a branch that is a part
of a legal entity).
(c) (c) A distinction needs to be made between reporting that applies IFRS
and reporting that applies nGAAPs.
15. Furthermore, it is important to specify whether or not the entity reporting at the
solo level (on an individual basis) is already included in consolidated reports.
Supervised entities that are part of supervised groups are referred to as
‘separate parents’ or ‘separate subsidiaries’ when reporting at the solo level;
supervised entities that are not part of supervised groups are referred to as
‘stand-alone’ entities.8
16. The ECB Regulation on reporting of supervisory financial information defines
different groups of reporting agents based on their characteristics as laid down
above. Each of these groups is subject to specific reporting requirements in
terms of data content and the first remittance date. The table below summarises
the resulting requirements in the Regulation.
5
See Chapter I of Title II of the ECB Regulation on reporting of supervisory financial information.
6
See Chapters II and III of Title II of the ECB Regulation on reporting of supervisory financial information.
7
See Title III of the ECB Regulation on reporting of supervisory financial information.
8
‘Stand-alone’ entities refers to credit institutions that do not have a parent (or have a parent that is
established in a non-participating Member State) nor subsidiaries (in any country, irrespective of
whether it is a participating Member State, a non-participating Member State or a third country).
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
6
17. ‘Waived’ institutions which are not required to comply with own funds
requirements on an individual basis are also excluded from the requirements of
the Regulation.9
Table 2
ECB supervisory financial reporting requirements for SSM-supervised groups and entities
18. The ECB Regulation on reporting of supervisory financial information defines
different datasets – ‘full FINREP’, ‘simplified supervisory financial reporting’,
‘over-simplified supervisory financial reporting’, and ‘supervisory financial
reporting data points’ – to implement the proportionality principle across
reporting agents.
• ‘Full supervisory financial reporting’ comprises the ‘full’ set of FINREP
templates, as provided for in Regulation (EU) No 680/2014.
• ‘Simplified supervisory financial reporting’10 comprises a reduced set of
templates.
9
‘Waivers’ concern whether the solvency ratios need to be met by the institutions within a group. If an
institution is ‘waived’ from the solvency ratios this means that the institution does not have to comply
with the solvency ratios.
Reporting population
Full FINREP
Simplified supervisory
financial reporting
Over-simplified
supervisory financial
reporting
Supervisory financial
reporting data points
First reference date
ECB
Significant
Consolidated (ultimate
parent) or sub-consolidated
(intermediate parent)
IFRS
X
9/2014 (sub-
consolidated
12/2014)
nGAAP
X
12/2015
Branch
SSM branches of non-SSM
credit institutions IFRS or
nGAAP
X
12/2015
Solo**
SSM stand-alone IFRS or
nGAAP
X
12/2015
Non-waived SSM separate
parents/subsidiaries IFRS or
nGAAP
X
6/2016
Non-SSM separate subsidiaries
IFRS or nGAAP above
threshold*
X
6/2016
Less significant
Consolidated (ultimate
parent) or sub-consolidated
(intermediate parent)
IFRS
X
12/2014
nGAAP above threshold*
X
6/2017
nGAAP below threshold*
X
6/2017
Branch
SSM branches of non-SSM
credit institutions IFRS or
nGAAP above threshold*
X
6/2017
Solo**
SSM stand-alone IFRS or
nGAAP above threshold*
X
6/2017
SSM stand-alone IFRS or
nGAAP below threshold*
X
6/2017
Non-waived separate SSM
parents/subsidiaries IFRS or
nGAAP above threshold*
X
6/2017
Non-waived separate SSM
parents/subsidiaries IFRS or
nGAAP below threshold*
X
6/2017
* €3 billion asset-value threshold is applied on an individual basis.
** reporting on an individual basis.
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
7
• ‘Over-simplified supervisory financial reporting’11 is an even further
reduced set of templates.
• ‘Supervisory financial reporting data points’12 is the most reduced dataset,
as it includes only selected data points taken from the templates of the
‘over-simplified supervisory financial reporting’ subset.
19. The ECB Regulation on reporting of supervisory financial information does not
affect the accounting standards applied by supervised groups and entities in
their consolidated financial statements, nor does it change the accounting
standards applied for supervisory reporting. Supervised groups and entities
have to submit financial information in accordance with the accounting
standards applied in their annual accounts (IFRS under Regulation (EC) No
1606/2002 or nGAAP) or according to IFRS if required pursuant to Article 24(2)
of Regulation (EU) No 575/2013 in order to align supervisory financial reporting
with reporting on own funds requirements.
20. Information compiled in accordance with Regulation (EU) No 680/2014 is
collected by the NCAs and reported to the ECB under Decision ECB/2014/29.13
Under Regulation (EU) No 680/2014, consolidated FINREP is mandatory for
credit institutions (both significant and less significant) applying IFRS.
21. Regarding consolidated supervisory financial reporting of significant supervised
groups applying nGAAPs, the ECB Regulation on reporting of supervisory
financial information requires completion of a ‘full’ set of FINREP templates, in
accordance with Annex IV of Regulation (EU) No 680/2014.
22. Regarding supervisory financial reporting at the solo level of significant
supervised entities (applying either IFRS and nGAAPs), the ECB will require the
completion of the ‘full’ set of FINREP templates for significant ‘stand-alone’
entities, and the more reduced set of templates of the ‘simplified supervisory
financial reporting’ for ‘non-waived’ separate parents and subsidiaries of
significant groups.
23. The ECB Regulation on reporting of supervisory financial information also
specifies the supervisory financial information to be reported to the ECB
regarding less significant groups under nGAAPs and less significant individual
entities (under both IFRS and nGAAPs). For these groups and entities, different
subsets of supervisory financial reporting templates – namely ‘simplified
supervisory financial reporting’ and ‘over-simplified supervisory financial
reporting’ will be collected and in some cases no reporting will be required at all.
Furthermore, an asset-value threshold of €3 billion has been incorporated,
10
See Annex I of the ECB Regulation on reporting of supervisory financial information.
11
See Annex II of the ECB Regulation on reporting of supervisory financial information.
12
See Annex III of the ECB Regulation on reporting of supervisory financial information.
13
Decision ECB/2014/29 of the European Central Bank of 2 July 2014 on the provision to the European
Central Bank of supervisory data reported to the national competent authorities by the supervised
entities pursuant to Commission Implementing Regulation (EU) No 680/2014 (OJ L 214, 19.7.2014, p.
34).
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
8
meaning that even simpler reporting is envisaged for groups and entities below
this threshold.
24. Branches of credit institutions established in non-participating Member States
that are located in participating Member States are supervised – either directly
or indirectly – by the ECB. They may be categorised as either significant or less
significant supervised entities14. The data content of the regular reporting of
supervisory financial information by branches of credit institutions established in
non-participating Member States that are located in participating Member States
is aligned with that of the category of supervised entities to which they belong
(significant or less significant). The only exception is that of less significant non-
material (i.e. below the asset-value threshold of €3 billion) branches in
participating Member States of credit institutions established in non-participating
Member States, which are exempted from the reporting requirements.
25. Finally, to obtain a comprehensive evaluation of a significant banking group, the
ECB will collect supervisory financial information about material (i.e. above the
asset-value threshold of €3 billion) subsidiaries of significant banking groups
subject to the SSM that are located in non-participating Member States or third
countries.
C
Analysis of costs and benefits
26. The ECB Regulation on reporting of supervisory financial information is an
important step forward in making supervised entities established in different
participating Member States report a common set of supervisory financial
information; it also ensures comparability.
27. The collection of common templates for significant supervised groups − while
maintaining the flexibility related to the use of different accounting frameworks −
allows for the consistent collection of the main items and further breakdowns of
balance sheets and profit and loss statements.
28. Furthermore, the collection of supervisory financial information from less
significant supervised institutions fulfils the data needs arising from the
provisions of the SSM Regulation dealing with the ECB’s power to assume
direct supervision of supervised entities. The collection of supervisory financial
reporting on an individual basis allows the ECB to obtain consistent data to run
a centralised risk assessment system, is consistent with the need to perform
supervision at both the consolidated and solo level, as envisaged in the Core
Principles for Effective Banking Supervision of the Basel Committee on Banking
14
See Articles 40 and 41 of the SSM Framework Regulation.
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
9
Supervision, and is a key step towards common reporting requirements within
the SSM.
29. The requirements in the ECB Regulation on reporting of supervisory financial
information have been informed by the principle of proportionality and envisage
the NCAs making as much use as possible of their existing reporting systems.
30. To further strike a balance between the availability of complete, consistent and
regular reporting and the need to avoid imposing an undue reporting burden,
the extension of the supervisory financial reporting requirements incorporates
provisions to effectively implement the principle of proportionality.
31. For instance, the reporting requirements for entities that are part of significant
supervised groups and those for less significant supervised groups are less
stringent in terms of data content; a €3 billion threshold for total assets has been
set in order to further reduce data content for non-material credit institutions and
less significant institutions have been given more time for the implementation of
the reporting requirements.
32. See Appendix 1 for a comparison of the content of the different datasets
(‘supervisory financial reporting data points’, ‘over-simplified supervisory
financial reporting’, ‘simplified supervisory financial reporting’ and full FINREP
reports).
33. The ECB carried out a cost assessment including a tentative estimation of costs
for NCAs associated with implementing the ECB Regulation on reporting of
supervisory financial information. According to the responding NCAs, the
implementation of the reporting requirements under the Regulation would
require significant changes in IT systems and in workload (including training)
together with significant increases in workload on an ongoing basis.
D
Legal basis
34. In accordance with Article 4(1)(d) of the SSM Regulation, the ECB must ensure
compliance with relevant Union law imposing prudential requirements on credit
institutions in the area of own funds requirements and reporting on those
matters. In accordance with Article 6(4) thereof, the ECB is exclusively
competent to carry out this task in relation to significant credit institutions.
35. Article 99(3) and (6) of the CRR provides the competent authorities with the
option to extend the reporting requirements of financial information on a
consolidated basis to (a) credit institutions applying international accounting
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
10
standards as applicable under Regulation (EC) No 1606/200215 for the reporting
of own funds on a consolidated basis pursuant to Article 24(2) of the CRR; and
(b) institutions that are subject to an accounting framework based on Directive
86/635/EEC.16
36. According to Articles 6(4), 6(5)(b) and 4(3) first paragraph of the SSM
Regulation, the ECB must apply all relevant Union law in respect of significant
supervised entities. Article 9(1) second paragraph of that Regulation provides
that ‘
it [the ECB] shall also have all the powers and obligations, which
competent and designated authorities shall have under the relevant Union law,
unless otherwise provided for by this Regulation’. Therefore, the ECB is
competent to exercise the options under Article 99(3) and (6) of the CRR.
37. Furthermore, on the basis of Articles 6(5)(d) and 10 of the SSM Regulation, and
Article 141(1) of the SSM Framework Regulation, and subject to Article 4 of the
SSM Regulation, the ECB is competent to require institutions to report any
information that is necessary to carry out the tasks conferred on it, including
information to be provided at recurring intervals and in specified formats for
supervisory and related statistical purposes.
38. Regulation (EU) No 680/2014 on supervisory reporting does not apply to the
reporting of financial information on an individual level. In areas not covered by
Regulation (EU) No 680/2014 (such as data at solo level) the supervisory
powers of the competent authorities are not restricted and therefore competent
authorities have discretion, including as regards the submission of additional
reporting for purposes other than those covered by Regulation (EU) No
680/2014. A competent authority may therefore determine the content,
frequency and reporting dates of FINREP by institutions at solo level.
39. Article 6(5)(d) of the SSM Regulation provides that with regard to credit
institutions referred to in paragraph 4 and within the framework defined in
paragraph 7, the ECB may at any time directly make use of the powers referred
to in Article 10 of the SSM Regulation.
40. In cases where the ECB requires legal or natural persons as specified in Article
10(1) of the SSM Regulation to provide information at recurring intervals,
Articles 140(3) and (4) and 141(2) of the SSM Framework Regulation apply
accordingly (Article 141(2)). Thus, as a general rule, information reported by
significant supervised entities is submitted to the NCAs.
15
Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the
application of international accounting standards (OJ L 243, 11.9.2002, p. 1).
16
Council Directive 86/635/EEC of 8 December 1986 on the annual accounts and consolidated accounts
of banks and other financial institutions (OJ L 372, 31.12.1986, p. 1).
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
11
E
Comments on specific parts of the draft
ECB regulation on reporting of
supervisory financial information
E.1
Scope of application and threshold for different reporting
E.1.1
Scope of reporting requirements for sub-groups, financial holdings
and mixed financial holding companies
41.
Four respondents asked for further clarification regarding the scope of reporting
requirements for sub-groups, financial holdings and mixed financial holdings
companies. They also asked whether sub-consolidated reporting is to be
collected only at the highest national level of sub-consolidation.
42. We updated the draft ECB regulation to clarify that reporting requirements of
supervisory financial information should be consistent with the capital
requirements of the CRR and the COREP capital adequacy reporting
requirement of the Regulation (EU) No 680/2014.
43. In line with the draft ECB regulation on reporting of supervisory financial
information, parent financial holding companies and mixed financial holding
companies of supervised credit institutions will remain subject to the ECB
Regulation on reporting of supervisory financial information reporting
requirements on an individual basis. Financial information on an individual basis
of these holding companies will provide supplementary information on the risks
involved in the relevant groups in addition to the consolidated reporting
requirements set out in Articles 11 and 18 of the CRR.
44. The draft ECB regulation on reporting of supervisory financial information did
not specify whether subsidiaries of significant supervised groups established in
a non-participating Member State or a third country have to fulfil their financial
reporting obligation on an individual or on a sub-consolidated basis. The draft
ECB regulation on reporting of supervisory financial information has clarified
that these subsidiaries report on an individual basis.
E.1.2
Threshold that triggers reporting or more extensive reporting
45.
Eight of the respondents proposed to increase the €1 billion total asset
threshold that triggers more extensive reporting to values between €2 and € 10
billion. Some of the respondents also noted that a threshold of €3 billion in total
assets would be in line with the definition of small institutions for the purposes of
the Single Resolution Fund, as set out in the Commission Implementing
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
12
Regulation (EU) 2015/63 on ex ante contributions to the resolution financing
arrangements under the Bank Recovery and Resolution Directive.17
46.
Some respondents also expressed a preference for determining the threshold
for separate parents and subsidiaries as a proportion compared to the size of
the group e.g. in proportion to the consolidated balance sheet of the group, or
for setting the threshold on the basis of an entity’s contribution to the balance
sheet of the parent company, or to the balance sheet of the consolidated
financial statements.
47. In order to ease the reporting burden and to be consistent with other
European regulations, the threshold has been increased to €3 billion. The
change will only affect less than one fifth of the number of less significant
institutions and their total assets.
48. The proposed use of proportions in defining the threshold would
unnecessarily complicate the regulation.
49.
One respondent proposed that in line with the methodology for calculating the
leverage ratio, funds provided on a fiduciary basis should be disregarded from
the calculation of the total assets of public sector development banks.
50. No change has been applied in order to maintain consistency with the
reporting requirements applied by the institution (IFRS or nGAAP).
E.2
Content of the reporting requirements
E.2.1
Option between IFRS and nGAAPs
51.
Five respondents proposed to allow to all nGAAP reporters (or members of
IFRS reporting groups) the choice of fulfilling reporting obligations based on
IFRS templates rather than using the nGAAP reporting templates. Some
respondents found that having the option of applying the IFRS reporting
templates could significantly reduce the reporting burden of subsidiaries of
parent institutions applying IFRS on a consolidated basis, even if local
accounting principles differed from IFRS.
52. A choice of the accounting framework for reporting will not be allowed in
order to align it with the accounting framework underlying the capital
requirements of the CRR and the COREP capital adequacy reporting
requirement of Regulation (EU) No 680/2014.
53. However, the draft regulation has been updated to clarify which accounting
framework has to be used for reporting of non-SSM separate subsidiaries.
17
Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a
framework for the recovery and resolution of credit institutions and investment firms and amending
Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC,
2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU)
No 648/2012, of the European Parliament and of the Council (OJ L 173, 12.6.2014, p. 190).
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
13
As there are no own funds reporting requirements for non-SSM separate
subsidiaries, their reporting framework will follow the reporting framework of
the highest level parent within a participating member state on a
consolidated basis.
54. Please also note that competent authorities have the choice of requiring the
application of IFRS reporting based on Article 24(2) of the CRR.
E.2.2
Mapping from nGAAPs to the reporting requirements
55.
Twelve respondents asked for support in mapping nGAAP requirements to the
reporting templates of the ECB Regulation on reporting of supervisory financial
information based on Annex IV of the ITS. They also indicated that some of the
data required in the nGAAP templates might not be available under nGAAP and
asked whether these data fields were not mandatory. It was also noted that
nGAAP reporting reorganised to an IFRS structure might not lead to information
comparable to that reported by entities applying IFRS.
56. The need for mapping nGAAP information to the relevant reporting
templates of Annex IV of Regulation (EU) No 680/2014 is acknowledged.
The ECB will support such efforts with a view to fostering harmonisation.
The use of reporting templates already developed as part of Regulation
(EU) No 680/2014 is also justified, in particular for two reasons: a) these
templates have been endorsed as part of Regulation (EU) No 680/2014
developed by the EBA; and b) their use avoids further inconsistencies of
data collections.
E.3
The timeline and method for the reporting requirements
E.3.1
First reporting date
57.
Nine respondents asked for postponement of the first reporting dates, referring
to the reporting burden which they considered high. Some of the respondents
also proposed that the implementation date of the Regulation should be in line
with the application date of IFRS9 which would lead to substantial changes in
the classification and measurement of financial instruments. Respondents also
asked the ECB to consider the reporting burden related to other new data
collections initiated by the ECB such as the AnaCredit project and to the
implementation of the changes required under the EBA’s ITS and Regulatory
Technical Standards.
58. The first reporting dates will not be postponed as the implementation time is
deemed to be sufficient. To duly take into account the principle of
proportionality the first reporting reference date is in mid-2017 for less
significant institutions.
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
14
E.3.2
Timeline and method of transmission of the reporting requirements
59.
The ECB Regulation on reporting of supervisory financial information does not
impose timelines within which banks are required to transmit the data to the
NCAs. According to some respondents, this may distort competition between
jurisdictions. One respondent proposed that the Regulation should impose
timelines for banks to send information to NCAs, consistent with the COREP
timeframe.
60. NCAs are bound by the date for submission to the ECB as laid down in the
ECB Regulation on reporting of supervisory financial information. Each NCA
should be allowed to set timelines within its jurisdiction in accordance with
its experience and resources in order to foster harmonised data collections.
61.
The ECB Regulation on reporting of supervisory financial information requires
data transmission using XBRL taxonomy. Some of the respondents prefer the
supposedly less severe XML format or other formats they currently use.
62. The Regulation only requires the submission of data in XBRL format from
NCAs to the ECB. NCAs are free to decide the format in which they collect
data from supervised institutions (i.e. banks could report using XML format
or other reporting languages if allowed by NCAs).
E.3.3
Clarification on responsibilities for reporting requirements
63.
With regard to subsidiaries in non-SSM countries, clarification has been sought
as to whether the responsibility for reporting data lies with the immediate or the
top-level SSM parent.
64. The highest level parent within a participating member state will be
responsible for reporting. The draft ECB regulation has been clarified in this
respect.
65.
According to some respondents, currently the majority of the branches
established in a participating Member State by a credit institution established in
a non-participating Member State lack the technical infrastructure to collect and
send financial information to their host NCAs. For this reason they proposed
that, for the sake of efficiency, the head office of the branch should be allowed
to send the information to the host NCA instead.
66. Based on the comments received, the draft ECB regulation has been
amended to clarify that the branches can discharge its reporting obligation
by means of a submission by the credit institutions by which they were
established.
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
15
E.4
Relationship with other data collections and
harmonisation of reporting requirements
67.
Twelve respondents commented that the data requirements included in the draft
ECB regulation overlapped with the statistical data which banks are required to
submit to the ECB. According to them this situation is not in line with the ECB’s
objective of not asking for specific information more than once. Respondents
also asked for a limitation of the NCAs’ ability to set additional requirements
within the framework of integrated reporting.
68.
Some of the respondents stated that the ambition to move towards integrated
data collection frameworks should result in a reduced reporting burden for
banks. The work of the Joint Expert Group on reconciliation of credit institutions’
statistical and supervisory reporting requirements was appreciated and should
move to a new level by actually reducing the reporting burden not only by
harmonising the definitions and concepts but also by recognising data
duplications and eliminating them.
69. As already commented above, the reporting requirements of supervisory
financial information have been determined in line with the principle of
proportionality and envisage the NCAs making as much use as possible of
the existing reporting systems. This should help to avoid duplicate reporting
in practice. Nevertheless, the ECB welcomes further harmonisation
between prudential and statistical reporting.
E.5
Need for clarification
E.5.1
Definition of ‘solo’ reporting and ‘sub-consolidated’ reporting
70.
Clarification has been requested in respect of the term ‘solo’ reporting and ‘sub-
consolidated’ reporting
71. In order to clarify the draft regulation in respect of ‘solo’ reporting, it was
updated to refer to reporting on an individual basis in line with the CRR.
Reference was also made to reporting on a sub-consolidated basis in Article
2 of the Regulation, clarifying that it has the same meaning as under Article
4(1)(49) of the CRR.
E.5.2
Scope of consolidation
72.
Clarification has been requested as to whether the scope of consolidation is
based on supervisory standards (i.e. the consolidation approach of the CRR).
73. The draft regulation has been updated to clarify that the scope of
consolidation is based on prudential consolidation requirements of the CRR.
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
16
E.5.3
Reporting requirements following a change in status of significance
74.
The draft ECB regulation did not address how the change in the status of an
entity or group from significant to less significant and vice versa triggered a
change in the reported datasets.
75. The draft regulation has been changed to reflect this issue and clarifies that
similar provisions apply as for the changes in reporting requirements
caused by the crossing of the €3 billion threshold of total assets.
E.5.4
Language barrier
76.
The issue of the language regime has been quoted as a major barrier especially
for less significant institutions.
77. The Regulation will be issued in all SSM languages simultaneously.
E.5.5
Intra-year reports
78.
Some comments questioned the introduction of the interim closure requirements
for non-listed banks, taking into account the compliance with the rules for
annual statutory accounts.
79. It should be noted that no external audit is needed for supervisory financial
information requested on a quarterly basis by Regulation (EU) No 680/2014
either.
E.5.6
Threshold for geographical breakdown
80.
One respondent requested clarification regarding the threshold mentioned in
Part 2 of Tables 1 and 2 (Annex I to the Regulation), i.e., the threshold for
reporting the geographical breakdown.
81. According to EBA reporting instructions, the threshold for this geographical
breakdown reporting is the one mentioned in Article 5(a)(iv) of Regulation
(EU) No 680/2014 on supervisory reporting. The draft ECB regulation has
been amended to include this reference.
E.5.7
Other requests for clarification
82. A number of drafting suggestions were provided to the ECB, aimed at clarifying
the text of the draft ECB regulation without changing its content. Those
suggestions have been duly assessed and implemented whenever beneficial.
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
17
F
Amendments made to the draft
regulation on reporting on financial
information
83. Changes to the draft ECB regulation on reporting of supervisory financial
information were incorporated in the ECB Regulation on reporting of supervisory
information as adopted on 17 March 2015 as a result of the comments received
during the public consultation period. The following table explains those
amendments. Purely editorial changes are not listed.
Table 3
Amendments to the draft ECB Regulation on reporting of supervisory financial information
Provision in the
draft regulation
Heading
Amendment
Article 1
Subject matter
Article 1(1) has been amended to clarify the reporting scope.
Article 1
Subject matter
A new paragraph 3 has been added to clarify the obligations on a sub-
consolidated basis.
New subparagraph has been added –
Article 1(3) – to clarify the
obligations on a sub-consolidated basis.
Article 1
Subject matter
A new paragraph 6 has been added to clarify the responsibility for
submission of reports for branches established in a non-participating
Member States.
Article 2
Definitions
Three new paragraphs 3, 4 and have been added to define sub-group,
consolidated basis and sub-consolidated basis.
New Article
Change of status of a supervised entity or a supervised group
A new article has been added ––
Article 3 –– to clarify the reporting
requirements when the status of significant or less significant has
changed.
Article 3
Format and frequency of reporting and reference dates and remittance dates for
significant supervised groups applying IFRS for supervisory reporting pursuant to
Article 24(2) of Regulation (EU) No 575/2013
The number of the article (now
Article 4) has changed due to the
insertion of an additional article.
‘On a consolidated basis’ has been inserted in order to clarify the
subject matter of
Article 4.
Article 4
Format and frequency of reporting and reference dates and remittance dates for
significant supervised groups applying national accounting frameworks based on
Directive 86/635/EEC
The number of the article (now
Article 5) has changed due to the
insertion of an additional article.
‘On a consolidated basis’ has been inserted in order to clarify the
subject matter of
Article 5.
Article 4
Format and frequency of reporting and reference dates and remittance dates for
significant supervised groups applying national accounting frameworks based on
Directive 86/635/EEC
The number of the article (now
Article 5) has changed due to the
insertion of an additional article.
Article 5 has been amended to clarify the scope.
Article 5
Format and frequency of reporting for entities which are not part of a significant
supervised group
The number of the article (now
Article 6) has changed due to the
insertion of an additional article.
‘On an individual basis’ has been inserted in order to clarify the subject
matter of
Article 6.
Article 5
Format and frequency of reporting for entities which are not part of a significant
supervised group
The number of the article (now
Article 6) has changed due to the
insertion of an additional article.
Article 6(3) has been amended to clarify the scope.
Article 6
Format and frequency of reporting for entities which are part of a significant
supervised group
The number of the article (now
Article 7) has changed due to the
insertion of an additional article.
‘On an individual basis’ has been inserted in order to clarify the subject
matter of
Article 7.
Article 6
Format and frequency of reporting for entities which are part of a significant
supervised group
The number of the article (now
Article 7) has changed due to the
insertion of an additional article.
Article 7(1) and 7(3) have been amended to clarify the scope.
Article 7
Reference dates and remittance dates for significant supervised entities.
The number of the article (now
Article 8) has changed due to the
insertion of an additional article.
Article 8
Format and frequency of reporting for subsidiaries of significant supervised groups
established in a non-participating Member State or a third country
The number of the article (now
Article 9) has changed due to the
insertion of an additional article.
The
heading and
Article 9(1) have been rephrased to clarify the
responsibility for submission.
Article 8
Format and frequency of reporting for subsidiaries of significant supervised groups
established in a non-participating Member State or a third country
The number of the article (now
Article 9) has changed due to the
insertion of an additional article.
‘On an individual basis’ has been inserted in order to clarify the subject
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
18
matter of
Article 9..
Article 8
Format and frequency of reporting for subsidiaries of significant supervised groups
established in a non-participating Member State or a third country
The number of the article (now
Article 9) has changed due to the
insertion of an additional article.
Article 9(1)(a) and (b) have been updated to the reporting requirements
of non-SSM separate subsidiaries.
Article 8
Format and frequency of reporting for subsidiaries of significant supervised groups
established in a non-participating Member State or a third country
The number of the article (now
Article 9) has changed due to the
insertion of an additional article.
Article 9(2) and (3) has been amended to reflect the change of the
threshold from €1 to €3 billion.
Article 8
Format and frequency of reporting for subsidiaries of significant supervised groups
established in a non-participating Member State or a third country
The number of the article (now
Article 9) has changed due to the
insertion of an additional article.
Article 10(2) and the
heading have been amended to clarify the
responsibility for submission.
Article 9
Reference dates and remittance dates for subsidiaries of significant supervised
groups established in a non-participating Member State or a third country.
The number of the article (now
Article 10) has changed due to the
insertion of an additional article.
Article 10(2) and the
heading have been amended to clarify the
responsibility of submission.
Article 10
Format and frequency of reporting and reference dates for less significant
supervised groups
The number of the article (now
Article 11) has changed due to the
insertion of an additional article.
‘On a consolidated basis’ has been inserted in order to clarify the
subject matter of
Article 11.
Article 10
Format and frequency of reporting and reference dates for less significant
supervised groups
The number of the article (now
Article 11) has changed due to the
insertion of an additional article.
Article 11(4) has been modified to clarify the scope.
Article 10
Format and frequency of reporting and reference dates for less significant
supervised groups
The number of the article (now
Article 11) has changed due to the
insertion of an additional article.
Article 11(6) and
(7) has been amended to reflect the change of the
threshold from €1 to €3 billion.
Article 10
Format and frequency of reporting and reference dates for less significant
supervised groups
The number of the article (now
Article 11) has changed due to the
insertion of an additional article.
Article 11(6) has been amended to exclude the groups applying IFRS
from the exception..
Article 11
Reference dates and remittance dates for less significant supervised groups.
The number of the article (now
Article 12) has changed due to the
insertion of an additional article.
Article 12(4) has been modified to clarify the subject matter and the
scope.
Article 12
Format and frequency of reporting for less significant entities which are not part of
a group
The number of the article (now
Article 13) has changed due to the
insertion of an additional article.
‘On an individual basis’ has been inserted in order to clarify the subject
matter of
Article 13.
Article 12
Format and frequency of reporting for less significant entities which are not part of
a group
The number of the article (now
Article 13) has changed due to the
insertion of an additional article.
Article 13(1) and 13(4) have been modified to clarify the scope.
Article 12
Format and frequency of reporting for less significant entities which are not part of
a group
The number of the article (now
Article 13) has changed due to the
insertion of an additional article.
Article 13(7) and (9) has been amended to reflect the change of the
threshold from €1 to €3 billion.
Article 13
Format and frequency of reporting for entities which are not part of a less
significant supervised group
The number of the article (now
Article 14) has changed due to the
insertion of an additional article.
‘On an individual basis’ has been inserted in order to clarify the subject
matter of
Article 14.
Article 13
Format and frequency of reporting for entities which are part of a less significant
supervised group
The number of the article (now
Article 14) has changed due to the
insertion of an additional article.
Article 14(1) and
14(4) have been modified to clarify the scope.
Article 13
Format and frequency of reporting for entities which are not part of a less
significant supervised group
The number of the article (now
Article 14) has changed due to the
insertion of an additional article.
Article
14(7) and (8) has been amended to reflect the change of the
threshold from €1 to €3 billion
Article 14
Reference dates and remittance dates for less significant supervised entities
The number of the article (now
Article 15) has changed due to the
insertion of an additional article.
Article 15(4) has been amended to clarify the scope.
Article 15
Data quality checks
The number of the article (now
Article 16) has changed due to the
insertion of an additional article.
Article 16
IT language for the transmission of information from national competent
authorities to the ECB.
The number of the article (now
Article 17) has changed due to the
insertion of an additional article.
Article 17
First reporting reference dates
The number of the article (now
Article 18) has changed due to the
insertion of an additional article.
Article 18(2) has been amended to clarify the responsibility for
submission..
Article 18
Transitional provisions
The number of the article (now
Article 19) has changed due to the
insertion of an additional article.
Article 19
Final provision
The number of the article (now
Article 20) has changed due to the
insertion of an additional article.
Annex I
Annex I Simplified supervisory financial reporting
A new point 5 has been added to clarify the threshold applicable for
geographical breakdown reporting.
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
19
Annex I
Examples of reported FINREP data
points
Data points
Oversimplified
FINREP
Simplified FINREP
Full FINREP
549 568
3,111 2,992 3,634 3,297 5,106 4,643
TEMPLATES
BAD (1) IFRS
Examples of FINREP data
points
BAD (1)
IFRS
BAD (1)
IFRS
BAD (1)
IFRS
Examples of full FINREP data points
PART 1 [QUARTERLY FREQUENCY]
Balance sheet
statement [statement
of financial position]
69
76
*Cash and cash balances
at central banks
*Trading financial assets,
*Provisions
*Capital
*Accumulated other
comprehensive income
135
103
135
103
135
103
*Breakdown of accumulated other
comprehensive income:
Actuarial gains or losses on defined
benefit pension plans
Non-current assets and disposal groups
held for sale
Hedge of net investments in foreign
operations (effective portion)
Cash flow hedges (effective portion)
Statement of profit or
loss
35
36
*Interest income,
*Depreciation
48
69
48
69
48
69
*Breakdown of interest income by
portfolio
*Breakdown of depreciation (PP&E,
investment properties, etc.)
Statement of
comprehensive
income
36
*Valuation gains or losses taken to
equity from assets in available for sale
portfolio
*Income tax relating to items that may
be reclassified to profit or loss
Breakdown of
financial assets and
liabilities
32
43
*Breakdown of only reverse
purchase loans by
counterparty
*Breakdown of only
deposits by counterparty
788
513
826
551
826
551
*Breakdown of credit card debt, trade
receivables, finance leases, etc. by
counterparty
*Breakdown of assets by collateral
(mortgage loans, etc.) and counterparty
*Breakdown of assets by purpose
(consumption, house purchase) and
counterparty
*Breakdown of deposits by type of
deposit (overnight, agreed maturity...)
and counterparty
*Detail of other liabilities (covered bonds
issued, non-convertible debt securities
issued...)
Information on
impairment
457
285
457
285
771
557
*Carrying amount of impaired loans and
advances granted to households
*Increases in specific allowances for
collectively assessed financial assets
due to amounts set aside for estimated
loan losses during the period
Off-balance sheet,
derivatives and
collateral/guarantees
16
16
*Derivatives of which OTC
broken down by
counterparty (credit
institutions, other financial
corporations and rest), for
trading and hedging
purposes
180
334
228
382
228
382
*Loan commitments given to non-
financial corporations
*Collateral (investment property)
obtained by taking possession during
the period and held at the reporting date
*Breakdown by type of equity
derivatives held for trading (OTC
options, etc.)
*Breakdown by type of credit derivatives
for hedge accounting (credit default
swaps, etc.)
Other information
185
337
304
682
565
*Change in fair value for the period in
equity instruments held for trading
classified as level 3 assets
*Loans and advances transferred, of
which, securitizations
*Income from debt securities from non-
financial corporations
*Carrying amount in the accounting
scope of consolidation of debt securities
held to maturity
Performing and non-
performing
exposures
363
363
*Accumulated impairment
on performing exposures,
in debt securities
891
891
891
891
891
891
*Accumulated impairment on performing
exposures, in debt securities (broken
down by maturity)
*Collateral received on non-performing
exposures in loans and advances
Feedback statement - responses to the public consultation on the draft European Central Bank
regulation on reporting of supervisory financial information
20
Forborne exposures
34
34
*Gross carrying amount of
exposures with forbearance
measures by type of
product (debt securities,
loans and advances),
broken down by
counterparty
612
612
612
612
612
612
*Gross carrying amount of exposures
with forbearance measures by type of
product (debt securities, loans and
advances), broken down by
counterparty, broken down by
performing/non-performing.
*Collateral received on exposures with
forbearance measures in loans and
advances
PART 2 [QUATERLY WITH THRESHOLD: QUARTERLY FREQUENCY OR NOT REPORTING]
Geographical
breakdown
80
80
340
286
*Loans and advances, non-domestic
activities
*Accumulated impairment on debt
securities from general governments,
broken down by country
Others
48
54
*Carrying amount of investment
property valued through the fair value
model
*Fee and commission income from
servicing of securitization activities
PART 3 [SEMI-ANNUAL]
Off-balance sheet
activities: interests in
unconsolidated
structured entities,
and related parties
131
138
*Fair value of liquidity support drawn
*Outstanding balances with subsidiaries
and other entities of the same group of
impaired amounts of financial assets
PART 4 [ANNUAL]
Group structure
20
20
28
28
*Entity LEI code xxx, sector of investee,
share capital
Others
139
171
*Separable hybrid contracts not
designated at fair value through profit
and loss in portfolio held for trading
*Additions to provisions for pending
legal issues and tax litigation
*Share based payments (memo item)
Statement of
changes in equity
227
200
*Changes in capital due to
reclassification of financial instruments
from equity to liability
(1) ‘BAD’ refers to the EU Bank Accounts Directive 86/635/EEC.
