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The Committee of European Banking Supervisors (CEBS) issued a consultation paper on a common framework for reporting of the solvency ratio by credit institutions. The paper concentrates on defining a common reporting framework around the solvency ratio for credit institutions and investment firms under the future EU Capital Requirements Directive (CRD).
The consultation paper primarily focuses on regulatory own funds and Pillar I capital requirements for credit risk, operational risk and market risk. The reporting framework does not cover areas such as liquidity, large exposures and credit registers.
Groups operating on a cross-border basis within the Single Market are presently required to prepare and submit their supervisory reporting according to different national formats and using different technologies. Greater commonality of approaches would substantially reduce their compliance burden. This should contribute to removing a potential obstacle to financial market integration.
The implementation of new IFRS and the CRD provide the EU with the opportunity to harmonise the data framework. Both supervisors and firms will need to develop new reporting requirements. The proposed framework comprises of a number of templates to be filled in by the reporting institutions.
The second consultation, planned for end March 2005, will focus on prudential reporting requirements around the balance sheet and income statement based on International Financial Reporting Standards (IFRS).
The deadline for Consultation is 30 April 2005.
Press release
Cover note
Consultation paper
Template