March 25, 2022

DISCLOSURES – PILLAR III EBA

by GPM in EBA

Commission Implementing Regulation (EU) 2021/637 of 15 March 2021 laying down implementing technical standards with regard to public disclosures by institutions of the information referred to in Regulation (EU) No 575/2013 of the European Parliament and of the Council.

Capital adequacy and minimum requirements for own funds and eligible liabilities are to

  • inform capital market participants to enable them to make knowledge-based decisions, and
  • ensure the level of risk taken by banks in the development of their business operation can be covered with the capital held.

WHAT HAS CHANGED?

Within Pillar 2 of capital adequacy, the European Commission regulated the process of publishing disclosures. Regulation (EU) 2021/637 widens and harmonises the scope of disclosures now required from the institutions. These changes have made the report preparation process more complicated and labour-intensive.

SCOPE OF REPORTING

The following reporting data are subject to disclosure: Financial Reporting (FINREP), Own Funds (COREP OF), Leverage (COREP LR), Assets Encumbrance (AE), Liquidity Coverage Requirement Delegated Act (LCR DA) and Net Stable Funding Ratio (NSFR).

CAN THE REPORTING PROCESS BE SIMPLIFIED?

Disclosure applies to the same data that had been reported to the supervisor within the supervisory process, which is why banks are looking for a tool enabling the creation of tables for disclosures based on data from the EBA ITS reports. Using the same reporting system in the process of publishing disclosures based on the EBA reports saves time and ensures that the report complies with the EBA requirements.

aSISt-Disclosure is a system enabling the automatic preparation of disclosures based on the EBA ITS reports.

A PROFESSIONAL TOOL FOR PREPARATION OF DISCLOSURES

The solution makes use of the EBA ITS reports sent in XBRL format to national supervisors. Such reports – with no additional preparatory work – are loaded into the system, which makes aSISt-Disclosure independent from the reporting system used by the bank.

The publication template includes the scope of disclosure, the method of calculating the numbers to be published, and the characteristic visual features used in the bank’s publications. The tables created in aSISt-Disclosure can be directly published or used as tables in broader elaborations and documentation.

Because the disclosures report has to be prepared in two language versions, the system has two separate templates – in English and in the language required in the client country. aSISt-Disclosure itself and the tables are available in English, but some forms have additional content fields that will be available in the second-language version of the report.

WHY CHOOSE ASIST-DISCLOSURE?

aSISt-Disclosure is a system created with the use of the aSISt application. The disclosure template is available in the form of tables allowing previews and data calculation.

The aSISt system, which serves as a foundation for this solution, is used to prepare EBA ITS reports, sent in the XBRL format to the national supervisor. Data from these reports are the basis for the disclosure report.

AN EFFICIENT PROCESS

The proposed solution minimizes the workload necessary to prepare tables for a disclosure report.

MINIMISATION OF ERRORS

Automation applied to the disclosure publication reduces operational risk resulting from potential errors in the process of preparing data for disclosure.

COMPLIANCE WITH LAW

aSISt-Disclosure guarantees compliance with the regulatory requirements and the corporate standards applicable in even the largest banks.

Preparation of disclosures with the aSISt-Disclosure application allows the use of completed reports and shortens the entire process.

Do not hesitate to contact us for more information about this solution.

DISCLOSURE

IFR/IFD

MREL/TLAC

EUCLID