Page 31 - EBA 2015.1815 Annual report 2014 web 2

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2 0 1 4 a n n u a l r e p o r t
pean banks in Q2-Q3 2014. The data requested
covered a large number of issues related to the
CVA capital charge. European banks with sizea-
ble over-the-counter (OTC) derivative portfolios
and material capital requirements for CVA risks
were invited to participate in the data collection
exercise on a voluntary basis. In total, 32 banks
from 11 jurisdictions participated.
In December 2014, the Basel Committee pub-
lished its Regulatory Consistency Assessment
Programme (RCAP) for the EU, whereby the
prudential regulatory framework in the EU
was evaluated to be ‘materially non-compli-
ant’ with the minimum standards prescribed
under the Basel framework. This overall grade
can be attributed largely to the CVA frame-
work, which was assessed to be ‘non-com-
pliant’ i.e. the lowest grade in the four-grade
scale used in RCAP assessments.
Enhancing the common supervisory
reporting framework across the EU
In 2014, the EBA put specific emphasis on uni-
form reporting requirements to ensure data
availability and comparability. This is important
not only for the EBA, but also the European Sys-
temic Risk Board (ESRB) and the SSM which
rely on comparable data to perform their roles.
ITS on Supervisory reporting
The draft ITS on supervisory reporting reflect
the Single Rulebook at the reporting level and
so needs to be updated whenever the Single
Rulebook is updated. The completion of these
technical standards by the EBA, as well as
answers to questions raised in the context of
the Single Rulebook Q&A mechanism, have
contributed to a more complete application of
the Single Rulebook and more precise and en-
hanced reporting instructions and definitions.
A revised set of ITS on supervisory reporting
were submitted to the Commission in July 2014
for adoption. Additionally, a new set of reporting
requirements for supervisory benchmarking
purposes were submitted to the Commission in
2014 for adoption in early 2015.
The ITS cover fully harmonised supervisory
reporting requirements for solvency, large
exposures, real estate losses, financial infor-
mation, liquidity, leverage ratio and asset en-
cumbrance and provide a comprehensive set
of harmonised data of all EU institutions. The
ITS also introduce a harmonised definition for
non-performing and forborne exposures to fa-
cilitate a full comparison of the asset quality of
EU banks. The information deriving from the
reporting requirements will facilitate supervi-
sors in their Pillar 1 monitoring and their as-
sessments of Pillar 2 risks.
Box 2 — Areas covered by the new har-
monised reporting requirements ITS on
Supervisory reporting
a) Own funds requirements and financial informa-
tion according to Article 99 of Regulation (EU) No
b) Losses stemming from lending collateralised by
immovable property according to Article 101(4)(a) of
Regulation (EU) No 575/2013;
c) Large exposures and other largest exposures accord-
ing to Article 394(1) of Regulation (EU) No 575/2013;
d) Leverage ratio according to Article 430 of Regulation
(EU) No 575/2013;
e) Liquidity coverage requirements and Net Stable
Funding requirements according to Article 415 of
Regulation (EU) No 575/2013;
f) Asset encumbrance according to Article 100 of Regu-
lation (EU) No 575/2013;
g) Additional monitoring metrics according to Article
415(3)(b) of Regulation (EU) No 575/2013;
h) Supervisory benchmarking of internal approaches
according to Article 78(8) of Directive 2013/36/EU.