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The current endorsement process of Implementing Technical Standards (ITS) on supervisory reporting poses challenges for financial institutions and supervisors alike due to systemic and significant delays in the adoption process, which disrupt the ability to update reporting requirements on a predictable schedule.
Such delays often create mismatches between reporting requirements and the underlying obligations to which they relate.
Consequently, they result in the European Banking Authority (EBA) not being able to develop its risk analyses based on reliable data; competent authorities not having the necessary tools to supervise institutions appropriately; and financial institutions being disproportionately burdened with duplication of reporting requirements.
To improve the decision making process, in its Opinion, the EBA proposes that supervisory reporting requirements are adopted directly through its own implementing technical decisions, rather than via ITS.
The Opinion also proposes that full EU institutional and stakeholder accountability is maintained through mechanisms including consultation and cost-benefit analysis, a streamlined scrutiny right for the Commission, a regular report on the reporting compliance burden, and the possibility of extending the scope of the Board of Appeal review to cover such decisions.