Harmonisation
of the
European Reporting
Framework
COREP
| 19 November 2009
COREP (Common Reporting)
Scope:
First released:
Solo and consolidated prudential
information collected by
national supervisors and based
on EU Basel II implementation
(CRD – 2006/48/EC and
2006/49/EC)
January 2006
Objective:
• develop a common language
for communication in the
context of a common European
framework (convergence)
Structure:
– core information (homogen)
– standardised supplemental
information (flexible)
– extentable
Implementation in EU:
– 27 countries
– 2/3 of content
COREP progress report | 19 November 2009
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COREP Operational Network
Committee of European Banking Supervisors (CEBS)
Group de Contact (GdC)
Expert Group Prudential
Regulation (EGPR)
Expert Group Financial
Information (EGFI)
Subgroup Reporting
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
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COREP - Projects of COREP Operational Network
1. Revision of COREP Framework in order to amend templates
because of CRD 2 amendments
2. Revision of COREP Framework in order to amend templates
because of CRD 3 amendments
3. Streamlining and harmonisation of the current COREP Framework
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COREP - Projects of COREP Operational Network
1. Revision of COREP Framework in order to amend templates
because of CRD 2 amendments
2. Revision of COREP Framework in order to amend templates
because of CRD 3 amendments
3. Streamlining and harmonisation of the current COREP Framework
• Uniform reporting formats
• Impact assessment
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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
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COREP – implementation of CRD amendments
Example CA template:
Memorandum items: hybrid instruments
1.1.2.2.*
Of which: Grandfathered
instruments with incentive to
redeem subject to limit
1.1.2.2.**
Of which: Grandfathered
instruments without incentive
to redeem subject to limit
1.1.2.2.01.01
Hybrid instruments that must
be converted during
emergency situations
Article 65(1) point a); Article 66 (1a) lit. a; Article 154 (8) and (9) of
Directive 2006/48/EC
1.1.2.2.01.02
Hybrid instruments (undated,
without incentive to redeem)
Article 65(1) point a); Article 66 (1a) lit. b; Article 154 (8)
and (9) of Directive 2006/48/EC
1.1.2.2.01.03
Hybrid instruments (dated or
incentive to redeem)
Article 65(1) point a); Article 66 (1a) lit. c; Article 154 (8) and
(9) of Directive 2006/48/EC
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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
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COREP – implementation of CRD amendments
Timeline for the revision of COREP incorporating CRD
changes that will be applicable starting end 2010
December 2009 Endorsement of revised COREP by CEBS
2010
National implementation for supervisors
and institutions as well
End 2010
Start of application
COREP progress report | 19 November 2009
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COREP - Projects of COREP Operational Network
1. Revision of COREP Framework in order to amend templates
because of CRD 2 amendments
2. Revision of COREP Framework in order to amend templates
because of CRD 3 amendments
3. Streamlining and harmonisation of the current COREP Framework
• Uniform reporting formats
• Impact assessment
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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.
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COREP – „uniform reporting formats“
Reporting before…
Group A
and after…
Supervisor 1
Supervisor 1
XBRL
Group B
Supervisor 2
Group A, B, C
Common
framework
Supervisor 2
XBRL
Group C
Supervisor 3
Different templates and definitions
Several formats
Different technologies
COREP progress report | 19 November 2009
Supervisor 3
Common templates and definitions
Single format
XBRL recommended
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COREP – „uniform reporting formats“
Timeline for the revision of COREP incorporating streamlining changes
that will be applicable starting end 2012
Analysis of
commonality:
Impact Assessment
Consultation Phase:
Implementation
05/ 2009
06 to 09/ 2010
2011/ 2012
07/ 2008 – 11/ 2008
User Test:
12/ 2008 – 09/ 2009
Development of a
streamlined framework
by COREP ON
CEBS Endorsment
December 2010
Application
from
31/12/2012
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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
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COREP – Impact Assessment
Why there are different reporting requirements in Europe?
Basis: Common Reporting Framework 2006
1.
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
2.
Reporting differences: Differences in the reporting templates (use of core
and details information), frequencies and remittance dates
 COREP streamlining and harmonisation
3.
IT differences: differences in the use of data standards for electronic filing
as well as in submission requirements
 e.g. XBRL network
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COREP – Impact Assessment
Questions to Workshop participants:
1. Which elements in COREP templates create problems
referring 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
2. 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?
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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.
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COREP
Thank you!
COREP progress report | 19 November 2009
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Contact details:
Name:
email:
Daniela Jentsch
[email protected]
Name:
email:
Wolfgang Strohbach
[email protected]
http://groups.google.com/group/eurofiling