EU banking supervision to simplify reporting requirements
The European Banking Authority (EBA) has launched a consultation on a comprehensive package of measures to simplify supervisory reporting across the EU. The initiative aims to make reporting simpler, smarter, and more proportionate for financial institutions.
Halving the reporting burden
The core of the EBA's initiative involves a comprehensive revision of the Implementing Technical Standards (ITS) on supervisory reporting.
This revision rebalances the framework towards essential information, resulting in a 16 percent reduction in data points within the EU harmonised reporting framework.
These reductions are further enhanced by lower reporting frequencies and increased proportionality.
Additionally, stress testing data collections are set to decrease by approximately 55 percent of data points, and supervisory benchmarking reporting volume will be cut by up to 65 percent, particularly for credit risk and IFRS 9 portfolios.
Overall, these measures are projected to deliver a net reduction of about 50 percent in data points across the EU harmonised reporting framework, encompassing both regular reporting and EU-wide stress test data collection, even after accounting for necessary additions.
Small and non-complex institutions (SNCIs), which currently report 49 percent of total requirements, will see an additional 18 percent reduction in reported data points.
Integrated reporting and modern tools
The EBA's initiative adopts a holistic strategy, addressing both existing and new EU-level reporting requirements while strengthening coordination between European and national reporting frameworks.
It also establishes the groundwork for integrated reporting and enhanced data sharing.
A stocktake of 2025 national supervisory data requests identified 671 such requests, totaling nearly 980,000 data points.
To improve transparency and prevent duplication, the EBA is creating an EU-wide public repository for supervisory data requests.
Furthermore, the EBA is collaborating with the ECB, SSM, SRB, and national authorities through the Joint Bank Reporting Committee (JBRC) to advance integrated reporting.
A key goal is to develop a common data dictionary and harmonised definitions across supervisory, resolution, and statistical reporting.
Technical advancements, including the transition to 'Datapoint Model (DPM) 2.0' and the introduction of 'DPM Studio', aim to modernise the entire reporting lifecycle and facilitate future integration with ECB statistical reporting.
Ambitious, but implementation is key
The proposed 50 percent reduction in supervisory reporting data points is an ambitious and necessary step towards alleviating the burden on financial institutions.
However, the ultimate success of this simplification hinges critically on the industry's response to the consultation and the effective implementation of integrated reporting.
While technical advancements promise long-term efficiency, the true measure of this overhaul will be a demonstrable reduction in compliance costs, not merely a decrease in reported data points.