Financial Institutions Will Need To Sprint To Accommodate New EBA COVID-19 Reporting And Disclosures

The European Banking Authority (EBA) has developed new guidelines for delivering a report comprised of data related to legislative measures recently introduced as a response to the COVID-19 global pandemic. The new EBA COVID-19 reporting and disclosures Guidelines are intended to ensure an appropriate understanding of an institution’s risk profile and quality of assets on their balance sheets. The EBA is therefore introducing new reporting and disclosure templates as a coordinated approach to the collection of information on payment moratoria of existing loans and public guarantees to new lending, in the context of COVID-19.

The technical documents for the new EBA COVID-19 reporting and disclosures requirements are expected to be released on July 10, 2020 within the existing 2.10 reporting framework. Reporting will be required on a quarterly basis, for an expected period of 18 months, with the first reference period being June 30, 2020. Local national competent authorities (NCAs) expect reporting institutions to submit their first reports in Excel format, before moving to XBRL format from September 30, 2020 reporting onwards. Given the technical considerations in play, this does not give institutions much time to prepare.

Mad Dash To The Finish Line

This new EBA COVID-19 reporting and disclosures requirement increases the burden already faced by firms addressing pandemic-driven challenges, including a host of additional regulatory reporting requirements. The requirement takes effect at a time when financial institutions may already be operating with limited resources. Because of the tight timeline between the release of the new templates and the first reporting submission, many financial institutions will have to sprint as if they are competing against Usain Bolt in the 100 meters to achieve timely compliance. Issues financial institutions will need to address as race day draws near are as follows:

  • Submission format – from September 30, 2020, only XBRL will be accepted
  • Sourcing of additional data points – the new reporting and disclosures will require approximately 750 data points, which may be siloed across an institution
  • Tight timeline – the EBA is expected to publish the technical documents for the new reporting requirements on July 10, with the first report in XBRL format to be submitted for the September 30, 2020 reporting period. This leaves financial institutions with less than three months to build the required reporting infrastructure.
  • COVID-19-driven challenges – implementing new/additional reporting will strain resources

 

Assessing Your Running Strategy

To assess the full impact of COVID-19 disruptions and accompanying regulatory changes, it is even more important than ever for financial institutions to have complete transparency into their data and calculations and be prepared to manage change. Given that the new EBA COVID-19 reporting and disclosures requirement is an additional regulation, multiple changes and updates from the authority are likely. Many of these could be technical, requiring more data, and making it necessary to consider resource optimization when accommodating future updates to EBA COVID-19-driven measures on reporting and disclosures.

The Winning Formula

AxiomSL’s reporting solution running on the ControllerView® data integrity platform will enable financial institutions to:

  • Accurately populate the new EBA COVID-19 reporting templates with validated data in the required format
  • Automate processes for the new EBA COVID-19 reporting and disclosures
  • Expedite reporting using a built-in business process model
  • Create efficiencies with an end-to-end, technology-driven approach for scalable reporting in the immediate and long-term

 

With AxiomSL’s proven technology, organizations can satisfy this new regulatory requirement and deliver the data integrity and auditability that regulators demand in the correct format, including XBRL submissions. Organizations are enabled to strengthen their resilience in times of crisis, and ultimately, enhance their decision making to drive business growth when they future proof their risk and regulatory reporting. And that ensures a victory lap.

To be in tip top shape and confidently address this new EBA COVID-19 reporting and disclosures requirement, take advantage of AxiomSL’s expert coaching and be ready when you step onto the track, contact us today!

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