The EBA has released its final draft technical standards on Supervisory Reporting on Non-Performing Exposures and Forbearance which will now be sent to the Commission for adoption. Click here to see the final draft.

The standard is designed to implement uniform definitions and reporting requirements and consistent indicators of asset quality of banks across the European Union - important in addressing questions over the correct valuation of assets in banks’ balance sheets.

According to the EBA, “These harmonised definitions and means of data collection will complete the tools available to both the EBA and the national supervisory authorities for the assessment and conduct of work on the asset quality issues at the European Union level. They are expected to enter into force in September 2014, although remittance date of supervisory reporting templates has been postponed to 31 December 2014.”

Separate reporting templates are thereby proposed for forbearance and non-performing exposures, to be completed on a consolidated basis, with some aggregate data also to be provided on a country-by-country basis. To lessen implementation costs, the EBA has removed some information to be provided under previous proposals for FINREP templates, thus avoiding redundancy.

Draft templates changes have been released by the EBA. However the Data Point Model (DPM) does not appear to have been updated, therefore no updated FINREP taxonomy is yet available.

To view existing template amendments and new templates on the extent of forbearance and the accurate assessment of non performing exposures released by the EBA for FINREP templates F18.00 and F19.00, click on Annex I and Annex II links in the “related documents” section on the EBA website.