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Harmonisation of the European Reporting Framework COREP

Harmonisation of the European Reporting Framework COREP. | 19 November 2009. Scope : Solo and consolidated prudential information collected by national supervisors and based on EU Basel II implementation (CRD – 2006/48/EC and 2006/49/EC) Objective :

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Harmonisation of the European Reporting Framework COREP

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  1. Harmonisation of the European Reporting FrameworkCOREP | 19 November 2009

  2. Scope: Solo and consolidated prudential information collected by national supervisors and based on EU Basel II implementation (CRD – 2006/48/EC and 2006/49/EC) Objective: develop a common language for communication in the context of a common European framework (convergence) First released: January 2006 Structure: core information (homogen) standardised supplemental information (flexible) extentable Implementation in EU: 27 countries 2/3 of content COREP (Common Reporting) COREP progress report | 19 November 2009

  3. COREP Operational Network • COREP Operational Network • At the moment 36 members and observers of 19 member states and of ECB • Aims of the network (among others): • To adress technical questions about COREP • To perform the technical maintenance of the Framework COREP progress report | 19 November 2009

  4. COREP - Projects of COREP Operational Network • Revision of COREP Framework in order to amend templates because of CRD 2 amendments • Revision of COREP Framework in order to amend templates because of CRD 3 amendments • Streamlining and harmonisation of the current COREP Framework COREP progress report | 19 November 2009

  5. COREP - Projects of COREP Operational Network • Revision of COREP Framework in order to amend templates because of CRD 2 amendments • Revision of COREP Framework in order to amend templates because of CRD 3 amendments • Streamlining and harmonisation of the current COREP Framework • Uniform reporting formats • Impact assessment COREP progress report | 19 November 2009

  6. COREP – implementation of CRD amendments • Amendments stemming from CRD 2 • (technical amendments, hybrid instruments, securitisation etc.) • Templates affected: • Own Funds: CA • Credit Risk:CR SA, CR IRB, CR SEC SA, CR SEC IRB, CR SEC Details • Operational Risk:OPR Details, OPR loss details COREP progress report | 19 November 2009

  7. COREP – implementation of CRD amendments • Example CA template: COREP progress report | 19 November 2009

  8. COREP – implementation of CRD amendments • Amendments stemming from CRD 3 (resecuritisation, trading book) •  Templates affected: • CA • CR SEC SA, CR SEC IRB, SEC Details • MKR SA TDI, MKR SA EQU, MKR IM, MKR IM Details •  Adding new templates • MKR SEC/RESEC SA, MKR SEC/RESEC IRB COREP progress report | 19 November 2009

  9. COREP – implementation of CRD amendments • Timeline for the revision of COREP incorporating CRD changes that will be applicable starting end 2010 COREP progress report | 19 November 2009

  10. COREP - Projects of COREP Operational Network • Revision of COREP Framework in order to amend templates because of CRD 2 amendments • Revision of COREP Framework in order to amend templates because of CRD 3 amendments • Streamlining and harmonisation of the current COREP Framework • Uniform reporting formats • Impact assessment COREP progress report | 19 November 2009

  11. COREP - „uniform reporting formats“ A new CRD requirement • Article 74 para 2 subpara 2 a (new) • For the communication of these calculations by credit institutions, competent authorities shall apply, by 31 December 2012, uniform formats, frequencies and dates of reporting. To facilitate this, the Committee of European Banking Supervisors shall elaborate guidelines to introduce, within the Community, a uniform reporting format at the latest by 1 January 2012. The reporting formats shall be proportionate to the nature, scale and complexity of the credit institutions' activities. COREP progress report | 19 November 2009

  12. COREP – „uniform reporting formats“ • Reporting before… and after… Supervisor 1 Supervisor 1 Group A, B, C Common framework Group A XBRL Supervisor 2 Supervisor 2 Group B XBRL Supervisor 3 Supervisor 3 Group C Different templates and definitions Common templates and definitionsSeveral formats Single format Different technologies XBRL recommended COREP progress report | 19 November 2009

  13. Timeline for the revision of COREP incorporating streamlining changes that will be applicable starting end 2012 COREP – „uniform reporting formats“ Impact Assessment 05/ 2009 Analysis of commonality: 07/ 2008 – 11/ 2008 Consultation Phase: 06 to 09/ 2010 Implementation 2011/ 2012 Development of a streamlined framework by COREP ON User Test: 12/ 2008 – 09/ 2009 CEBS Endorsment December 2010 Application from 31/12/2012 COREP progress report | 19 November 2009

  14. COREP – Impact Assessment • COREP ON conducted an Impact Assessment • Step 1: Problem identification • Step 2: Definition of policy objectives • Step 3: Definition of policy options/ changes • Step 4: Assessment of likely costs and benefits • Step 5: Identification of the preferred policy option COREP progress report | 19 November 2009

  15. COREP – Impact Assessment • Why there are different reporting requirements in Europe? Basis: Common Reporting Framework 2006 • Legal differences: differences among national legislations (e.g. national discretions of CRD)and differences in accounting rules among Member States e.g. CRD IV, CRD Transposition Group • Reporting differences: Differences in the reporting templates (use of core and details information), frequencies and remittance dates COREP streamlining and harmonisation • IT differences:differences in the use of data standards for electronic filing as well as in submission requirements e.g. XBRL network COREP progress report | 19 November 2009

  16. COREP – Impact Assessment • Questions to Workshop participants: • Which elements in COREP templates create problemsreferring to the reporting system of a multinational institution? • E.g. Recognition of hybrid instruments, problem: if grandfathered instruments were subject to different limits than new hybrid instruments • What elements shall the technical annex to revised COREP guidelines include? • E.g. Detailed data definitions and references in COREP GL to facilitate uniform implementation and banks‘ internal cross checks/reconciliations • ... to support software providers/ease IT implementation? COREP progress report | 19 November 2009

  17. COREP – Impact Assessment •  Follow up: • It is our intention to involve financial institutions and software providers into the streamlining process at an early stage of the process in order to receive more information concerning the possibilities to enhance COREP. • Therefore we would appreciate your comments on the questions of the previous slide by 11 December 2009. • Please be as detailed as possible, because the more detailed information we get, the better your input can be incorporated in the process. COREP progress report | 19 November 2009

  18. COREP • Thank you! COREP progress report | 19 November 2009

  19. Contact details: Name: Daniela Jentschemail: daniela.jentsch@bundesbank.de Name: Wolfgang Strohbachemail: wolfgang.strohbach@c-ebs.org http://groups.google.com/group/eurofiling

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