Annual Report 2009 - European Banking Authority - Europa

38
CEBS’s ACHIEVEMENTS
39
CEBS’s ACHIEVEMENTS
4.3.2.3
Report on Pillar 3 Disclosures
On June 2009, CEBS published a report assessing
the quality and compliance with the requirements of
the CRD 54 of the first Pillar 3 disclosures provided by
a sample of European financial institutions. The Pillar 3
disclosure requirements include new information related
to capital structure, capital adequacy, risk management
and risk measurement.
The report highlighted that Pillar 3 disclosures have
efficiently contributed to providing market participants with
information allowing a better assessment of banks’ risk
profiles and capital adequacy. However, CEBS identified
several areas where disclosures could be enhanced:
• The composition and characteristics of own funds.
• Back testing information for credit risk and market risk
could be further developed.
• Disclosures on credit risk mitigation techniques
appear too synthetic. In particular, the CEBS noted
insufficiencies with regard to quantitative information
and to the information on the quality of guarantors.
• In the area of counterparty credit risk, banks need
to elaborate further on value adjustment policies and
provide more granular quantitative information.
• Finally disclosure on securitisation transactions could
have been more granular though those banks which
have followed the “Industry good practice guidelines”
have on the whole provided more comprehensive
and understandable information.
It was also observed that Pillar 3 disclosures are
somewhat heterogeneous notably as regards their
presentation, timeframe and format, and the nature of the
data disclosed. Some of those differences may relate to
the non-prescriptive approach retained by the CRD and
the Member States, which may raise comparability issues
for users.
It is expected that market discipline will help to reduce
the heterogeneity observed during this first year of the
implementation of Pillar 3.
NEXT STEPS
In 2010 CEBS will renew its assessment exercise
on Pillar 3 disclosures putting greater emphasis on
the main weaknesses identified in the first exercise.
The potential need for supervisory guidance will be
considered on the basis of this new assessment.
CEBS will also consider promoting convergence by
highlighting best practices.
4.3.3
Towards a Single
Reporting Framework
In 2007, CEBS published a study assessing the level of
convergence in the application of the CEBS Guidelines
on Reporting (COREP and FINREP) 55 . The results of
the study demonstrated that more work was needed
in the medium term to achieve greater convergence in
supervisory reporting, at least for institutions that operate
cross-border within the EU. To that end, a road-map
pointing towards more standardised supervisory reporting
was developed. Several projects on streamlining and
harmonising reporting formats have been launched that
will allow CEBS to deliver EU-wide reporting formats for
FINREP and COREP, consistent with the request of the
EU Institutions.
The scope of the deliverables is as follows:
• Consolidated and sub-consolidated financial
reporting for supervisory purposes based on IAS/
IFRS as endorsed by the European Union. These
reports are covered by the Guidelines on Financial
Reporting.
• Consolidated, sub-consolidated and solo reporting
of the capital requirements and own funds based
on Directives 2006/48/EC and 2006/49/EC. These
reports are based on the Guidelines on Common
Reporting.
To achieve a high level of harmonization and strong
convergence in regular supervisory reporting
requirements, CEBS decided to revise its current
guidelines on COREP and FINREP with the aim of
developing a supervisory reporting model with common
data definitions.
Though the use of XBRL for reporting purposes is not
mandatory for the national authorities, CEBS will continue
to recommend it, as the adoption of XBRL taxonomies will
lead to greater harmonization of IT formats.
55 Assessment of convergence in supervisory reporting: http://www.c-ebs.org/getdoc/97aced1d-0c74-4692-bbff-
30efa5bbc1f2/20071008Assessmentofconvergenceinsupervisoryreport.aspx
54 As reflected in Chapter 5 (“Disclosures by credit institutions”) of Title V of Directive 2006/48/EC and in Annex XII (“Technical criteria on Disclosure”)