EBA updates its guidelines for the reporting of funding plans

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Published
Dec 9th '19
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The European Banking Authority (EBA) publishes today updated guidelines on harmonised definitions and templates for the reporting of funding plans. The changes include additional details of forecasted market based funding, alignment to FINREP reporting and additional proportionality for small and non-complex credit institutions. This update is the result of the experience gained through the EBA’s assessment of banks’ funding plans in the recent years. The changes introduced will provide deeper insights into bank’s funding plans and increase efficiency, facilitate the implementation and reduce reporting costs. The new detailed breakdown of forecasted market-based funding according to seniority will allow monitoring the funding structures and, in particular, the need of issuing Minimum Requirement for own funds and Eligible Liabilities (MREL) eligible instruments and of replacing maturing central bank funding support which are expected to be the key drivers for credit institutions’ funding needs. The new template on the forecast of statement of profit or loss will allow the monitoring of trends over time in firms’ profitability and their impact on funding.

The updated guidelines include detailed instructions and are fully aligned with definitions and breakdowns used in FINREP reporting to increase comparability, facilitate the data production process for credit institutions and to deliver better data quality. The guidelines also introduce some simplifications for small and non-complex institutions to enhance proportionality and reduce reporting costs.

Implementation and remittance date

The first reporting reference date will be 31 December 2020. The guidelines will be part of the version 2.10 reporting framework release and the EBA will publish the related technical package in early 2020.

 Legal basis

The guidelines ions have been drafted according to Article 16 of the EBA Regulation, which mandate the Authority to seek to establish consistent, efficient and effective supervisory practices by harmonising templates and definitions. In addition, the guidelines have been developed in accordance with paragraph 4 of Recommendation A of the European Systemic Risk Board Recommendations of 20 December 2012 on funding of credit institutions.

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Source: EBA