Consultation

Consultation on ITS amending Implementing Regulation (EU) No 680/2014 with regard to operational risk and sovereign exposures (EBA-CP-2016-20)

Start date: 14/11/2016 | Deadline: 07/01/2017 | Status: Closed | Permanent link

The European Banking Authority (EBA) published today for consultation revised Implementing Technical Standards (ITS) on supervisory reporting. The proposed amendments concern new requirements for the reporting of information on sovereign exposures and changed requirements for the reporting of operational risk data. The standards on supervisory reporting aim at collecting information on institutions’ compliance with prudential requirements in a consistent way and need to be updated whenever prudential or supervisory requirements change. This consultation runs until 7 January 2017.
 
Information on sovereign exposures was crucial in the past and is becoming even more important now that the treatment of sovereigns is under review. The proposed draft ITS include additional information on sovereign exposures as the currently available data suffers from several shortcomings, which has required, so far, to resort to ad-hoc collections from Competent Authorities. 
 
Considering the significant increase in institutions’ costs stemming from operational risk events and the significant impact on profitability, these draft ITS also propose improvements to the reported information on operational risk. These changes will allow supervisors to monitor the losses due to this risk and to analyse the drivers behind the events triggering such material losses. 
 

Consultation process

Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 7 January 2017.
 
All contributions received will be published following the close of the consultation, unless requested otherwise. 
 

Legal basis and next steps

These draft ITS have been developed according to Article 99(5) of the Capital Requirements Regulation (CRR), which mandates the EBA to develop uniform reporting requirements.
 
The EBA expects to submit these revised draft ITS to the European Commission in March/April 2017. The application of the revised requirements will be in March 2018, with the first reporting reference date as of 31 March 2018.