02 Jul EBA Published Draft MREL and TLAC ITS Applicable to EBA Framework 3.00
June 24, 2020 – Following the mandates in the CRR2 and BRRD2, the European Banking Authority (EBA) published a consultation paper on draft implementing technical standards (ITS) on supervisory reporting and public disclosure of TLAC and MREL. The draft ITS include templates and tables implementing the TLAC/MREL Pillar 3 disclosure requirements and the supervisory reporting requirements. In addition, the consultation paper includes two recommended reporting templates covering the forecast of MREL and TLAC positions and funding structures, and a mapping file between disclosure and reporting.
This is the first time that the EBA is developing TLAC and MREL reporting and disclosure requirements. The approach pursued aims to maximise efficiency by institutions when complying with their disclosure and reporting obligations, and to improve the use of information by authorities and market participants
The EBA will also develop the data-point model (DPM), XBRL taxonomy and validation rules based on the final draft ITS, which are going to be published in the third quarter of 2020 and will be included in EBA Framework 3.00.
The ITS on the disclosure on TLAC are expected to apply immediately after its adoption by the European Commission. In contrast, the disclosure on MREL will apply from the date of the expiration of transition periods pursuant to Article 45m of Directive 2014/59/EU, i.e. from 1 January 2024 or, where the resolution authority set a compliance deadline after 1 January 2024, from that compliance deadline.
The first reference date for both MREL and the TLAC reporting in accordance with these technical standards is expected to be 30 June 2021. The expected implementation period for the proposed reporting requirements is approximately 1 year.
For more information please visit EBA website.
- Alice in Basel-land – New EBA Large Exposure Framework and CRR2 Will Alter Financial Institutions’ Realities Globally
- Revised Capital Requirements Regulation Rules: CRR2 Reforms And Beyond In The Age Of COVID-19
- Basel IV FRTB Changes Leave Financial Institutions Asking: How Do You Spell Difficult? F-R-T-B