Today the European Banking Authority revealed a Report on the Peer Review carried out on its ITS on supervisory reporting aimed at assessing how supervisory authorities have ensured its consistent and comprehensive implementation.
The Report summarises the outcomes of this assessment involving the supervisory authorities of all EU Member States, the European Central Bank (ECB)/Single Supervisory Mechanism (SSM) and the supervisory authorities of three European Free Trade Association (EFTA) countries (Iceland, Liechtenstein and Norway). Overall, the Peer Review concluded that most supervisory authorities have put in place robust processes and IT systems to ensure a timely, complete and correct data reporting.
The EBA has carried out a Peer Review on its ITS on supervisory reporting, which is a legally binding standard defining a set of fully harmonised reporting requirements across the EU Member States. The main goal of the peer review was to assess the processes put in place by supervisory authorities in the context of supervisory reporting, such as the procedures and IT systems used to collect data and ensure data quality, the process of dealing with enquiries by reporting institutions, governance issues and measures taken to update the reporting framework.
Generally, the Peer Review has not identified any significantly negative outliers. Most of the supervisory authorities have put in place consistent and comprehensive processes and sophisticated IT systems to ensure a timely, complete and correct data reporting.
The Peer Review has also identified a number of best practices, and highlighted differences in approaches across authorities with regards to the operational implementation of supervisory reporting as well as to the level of sophistication of their IT systems.
One of the concerns raised unanimously by the involved supervisory authorities was the uncertainty stemming from the late endorsement and publication in the Official Journal by the European Commission of updates to the ITS on Supervisory Reporting. To address this uncertainty, the EBA Board of Supervisors submitted an Opinion to the European Commission to improve the decision-making framework for reporting requirements.