EBA Study of the cost of compliance with supervisory reporting requirement

In 2020, the European Banking Authority (EBA) conducted an in-depth analysis aimed at assessing the effectiveness of current reporting, including the measures targeting a containment of the reporting cost, and identifying further areas for proportionality in the reporting framework. This analysis was conducted following the mandate of the Capital Requirements Regulation (CRR) to the EBA to measure the costs that credit institutions incur when complying with the supervisory reporting requirements.

In this context, the EBA has published a study of the cost of compliance with supervisory reporting requirement in the European Economic Area (EEA).

EBA Study of the cost of compliance with supervisory reporting requirement

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Executive summary

The EBA has published a study of the cost of compliance with supervisory reporting requirement in the European Economic Area (EEA) where has identified numerous recommendations collectively leading to a potential reduction of the banks’ reporting costs by up to 15-24%. The 25 recommendations presented in this report, rather than being limited to the proposals for changes to the content of EBA reporting requirements, also target improvements to the efficiency of the reporting process and the reporting environment as a whole.

Main content

This Technical Note focuses on:

Key challenges in supervisory reporting faced by institutions. The EBA has identified several challenges that institutions face, notably: Complexity of reporting and underlying regulatory requirements, as well as the scope of supervisory requirements (general and EBA) and implementation time in case of major changes to the reporting framework.

Key benefits of standardised supervisory reporting for users. Supervisory reporting is an essential input for supervisory work. In particular, it is a key element for facilitating off-site supervisory activities.

Recommendations. Recommendations are grouped according to whether they affect the development process for the reporting framework, the design of supervisory reporting requirements and reporting content, the coordination and integration of data requests and reporting requirements, and to the reporting process, including the wider use of technology.

Download the technical note by click​ing here.