The European Banking Authority (EBA) today published an XBRL taxonomy to be used by competent authorities for remittance of data under the EBA Implementing Technical Standards (ITS) on supervisory reporting. \
It presents the data items, business concepts, relations, visualisations and validation rules described by the EBA Data Point Model (DPM) contained in the ITS on supervisory reporting, including the amendments relating to asset encumbrance, forbearance and non-performing exposures.
The reference date is as of 30 September 2014 onwards and it includes the first reports under FINREP.
The taxonomy defines a representation for data collection under the reporting requirements related to own funds, financial information, losses stemming from: lending collateralised by immovable property, large exposures, leverage ratio, liquidity ratios and asset encumbrance.
As part of enhancing regulatory harmonisation in the EU banking sector and facilitating cross-border supervision, uniform data formats are necessary to enable comparable data on credit institutions and investment firms across the EU.
The EBA XBRL taxonomy was primarily developed for data transmission between competent authorities. The EBA, many authorities have been using it for the collection of supervisory reporting from the credit institutions and investment firms they supervise. The taxonomy proposed by the EBA will lead to convergence of supervisory practices across Members States and also facilitate supervisors to identify and to assess risks consistently across the EU and to compare EU banks in an effective manner.
The updated taxonomy issued today incorporates corrections to the COREP and FINREP reporting structures in line with the published ITS, and new reporting structures for asset encumbrance.
It includes the following technical documents:
• The set of XML files forming the XBRL taxonomy
• A description of the architecture of the XBRL taxonomy
• The DPM of which the taxonomy is a standardised technical implementation, includes both database and document representations, along with a description of the formal modelling approach on which it is based.
Date of applicability
The existing taxonomy (2.0.1) related to the September 2013 framework release is to be used for remittance to the EBA for reports with reference dates prior to 30 September 2014.
Reports with reference dates as of 30 September 2014 and beyond are to use this revised taxonomy (2.1), which is related to the March 2014 framework release. Remittance of FINREP reports will, therefore, commence using this revised taxonomy.
Legal basis and next steps
This XBRL taxonomy was developed based on the final draft ITS on supervisory reporting including amendments regarding asset encumbrance, forbearance and non-performing exposures (and incorporating some revisions arising from the publication and adoption process of the Commission Implementing Regulation (EU) No 680/2014) and in accordance with 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 (Capital Requirements Regulation – CRR).
While the original ITS were adopted by the European Commission and published in the Official Journal of the European Union on 28 June 2014, the ITS amendments regarding asset encumbrance, forbearance and non-performing exposures are pending adoption and publication. Hence, this taxonomy is subject to further necessary revisions following the publication and adoption process and based on any critical technical corrections that may be identified.
Later this year, the EBA expects to publish a further revision of its XBRL taxonomy incorporating further alignment corrections, and additional reporting requirements regarding funding plans, which is expected to be used for reports with reference dates as of 31 December 2014 and beyond.
It seems probable that similar reporting formats will be introduced to this region. So consider this when selecting your regulatory reporting solution, BRS Analytics data model and report outputs have already been extended to meet the COREP and FINREP requirements.