EU Banking Watchdog Enhances ITS for Efficient Resolution Data Collection
The European Banking Authority (EBA) has recently unveiled its revised final draft of Implementing Technical Standards (ITS) focused on resolution planning reporting. This pivotal update aims to simplify regulatory compliance across the EU, making it easier for financial institutions to meet their obligations. With a primary emphasis on harmonizing data requirements, the EBA seeks to reduce unnecessary reporting, thereby alleviating the compliance burden for banks and financial institutions.
Key Features of the Revised ITS
The adjustments introduced by the EBA are designed to enhance the overall efficiency of resolution planning reporting. Here are some of the significant improvements:
- Enhanced Data Usability: The revisions aim to improve the usability of data for resolution authorities, making it easier for them to access and interpret necessary information.
- Elimination of Redundant Data Points: The EBA has identified and removed unnecessary data points that previously complicated the reporting process.
- Prevention of Overlapping Requests: The new standards will help prevent overlapping information requests that can create confusion and inefficiency.
- Core-Plus-Supplement Model: The ITS introduces a new model that moderates reporting requirements for smaller institutions, reducing the workload significantly.
Principles of Proportionality
One of the central principles guiding these revisions is proportionality. This principle ensures that reporting obligations are tailored to each institution’s size and complexity, allowing smaller banks to comply without facing overwhelming requirements.
Upcoming Releases and Requirements
Looking ahead, the EBA is set to release a technical package in Q4 2025. This package will include:
- The Data Point Model (DPM)
- Validation rules
- A detailed taxonomy for submitting resolution planning information
These components are crucial for institutions as they prepare to implement the new reporting requirements effectively.
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