17 Mar EBA Published Discussion Paper on Integrated Reporting
March 11, 2021 -The European Banking Authority (EBA) published a discussion paper on the feasibility study of an integrated reporting system for collecting statistical, resolution and prudential data, involving the feedback of relevant authorities.
The feasibility study will analyse the practicability of various options for creating an integrated reporting system and aims to discover the best approach:
- to reduce the reporting costs for the reporting institutions
- to increase the efficiency in the reporting processes and
- to introduce the ‘define once’ principle which will facilitate data comparability and data sharing, increase coordination among authorities and remove overlaps.
The central topic of the discussion paper is establishing a common data dictionary for prudential, statistical and resolution data collections. The data dictionary would allow a common understanding of the reporting requirements and will implement the design approach ‘report once’. According to the analysis, the dictionary should take into account the existing differences between the datasets (such as the different levels of integration and granularity) as well as the differences in the national regulations. The discussion paper also explores the data granularity and therefore, three scenarios for collecting data on a more granular basis are reviewed. The EBA considers that a more granular reporting might enable the collection of data only once, increase the consistency and reusability of the data and entails efficiency gains.
The discussion paper also assesses whether the creation of a Central Data Collection Point (CDCP) is a practical option. Moreover, the report explores two different data reporting architectures for data collection, the ‘Push’ and ‘Pull’ approaches. Currently, the reporting entities gather the data from their internal systems and submit it to the authorities. This setup of data collection is known as a ‘push model’. The alternative to the ‘push model’ is a ‘pull model’. Following this approach, the authorities would be able to directly retrieve the data from the reporting entities’ systems. The ‘pull model’ would only be feasible if the reporting entities’ data repository follows an established data model. Once such data standard is set in place, authorities could collect the data by using interfaces like APIs or WebServices.
The EBA engages in the discussion paper the ECB, the ESCB and the national authorities. The ESCB research on integrated data collection published in September 2020 is the fundament of the EBA analysis. The ECB contributes to the discussion paper with the development of the statistical reporting framework Integrated Reporting Framework (IReF)) and Banks Integrated Reporting Dictionary (BIRD) project on data dictionaries that would be applicable across the euro area.
The consultation runs until 11 June 2021.
For more information please visit: EBA website
Jurisdiction: European Union
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