1. Harmonisation of the European Reporting Framework COREP
| 19 November 2009

2. COREP (Common Reporting)
Scope:
Solo and consolidated prudential information collected by national supervisors and based on EU Basel II implementation (CRD – 2006/48/EC and 2006/49/EC)
Objective:
develop a common language for communication in the context of a common European framework (convergence)
First released:
January 2006
Structure:
core information (homogen)
standardised supplemental information (flexible)
extentable
Implementation in EU:
27 countries
2/3 of content
COREP progress report | 19 November 2009

3. 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
COREP progress report | 19 November 2009

4. COREP - Projects of COREP Operational Network
Revision of COREP Framework in order to amend templates because of CRD 2 amendments
Revision of COREP Framework in order to amend templates because of CRD 3 amendments
Streamlining and harmonisation of the current COREP Framework
COREP progress report | 19 November 2009

5. COREP - Projects of COREP Operational Network
Revision of COREP Framework in order to amend templates because of CRD 2 amendments
Revision of COREP Framework in order to amend templates because of CRD 3 amendments
Streamlining and harmonisation of the current COREP Framework
Uniform reporting formats
Impact assessment
COREP progress report | 19 November 2009

6. 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
COREP progress report | 19 November 2009

7. COREP – implementation of CRD amendments
Example CA template:
Memorandum items: hybrid instruments *
Of which: Grandfathered instruments with incentive to redeem subject to limit **
Of which: Grandfathered instruments without incentive to redeem subject to limit
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
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
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
COREP progress report | 19 November 2009

8. 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
COREP progress report | 19 November 2009

9. 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

10. COREP - Projects of COREP Operational Network
Revision of COREP Framework in order to amend templates because of CRD 2 amendments
Revision of COREP Framework in order to amend templates because of CRD 3 amendments
Streamlining and harmonisation of the current COREP Framework
Uniform reporting formats
Impact assessment
COREP progress report | 19 November 2009

11. 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 The reporting formats shall be proportionate to the nature, scale and complexity of the credit institutions' activities.
COREP progress report | 19 November 2009

12. COREP – „uniform reporting formats“
Reporting before… and after…
Supervisor 1
Supervisor 1
Group A
Group A, B, C
Common
framework
XBRL
Supervisor 2
Supervisor 2
Group B
XBRL
Group C
Supervisor 3
Supervisor 3
Different templates and definitions Common templates and definitions Several formats Single format
Different technologies XBRL recommended
COREP progress report | 19 November 2009

13. COREP – „uniform reporting formats“
Timeline for the revision of COREP incorporating streamlining changes that will be applicable starting end 2012
Analysis of commonality:
07/ 2008 – 11/ 2008
Impact Assessment
05/ 2009
Consultation Phase:
06 to 09/ 2010
Implementation
2011/ 2012
User Test:
12/ 2008 – 09/ 2009
Development of a streamlined framework by COREP ON
CEBS Endorsment
December 2010
Application from
31/12/2012
COREP progress report | 19 November 2009

14. 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
COREP progress report | 19 November 2009

15. COREP – Impact Assessment
Why there are different reporting requirements in Europe?
Basis: Common Reporting Framework 2006
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
Reporting differences: Differences in the reporting templates (use of core and details information), frequencies and remittance dates  COREP streamlining and harmonisation
IT differences: differences in the use of data standards for electronic filing as well as in submission requirements  e.g. XBRL network
COREP progress report | 19 November 2009

16. COREP – Impact Assessment
Questions to Workshop participants:
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
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?
COREP progress report | 19 November 2009

17. 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.
COREP progress report | 19 November 2009

18. COREP
Thank you!
COREP progress report | 19 November 2009

19. Contact details:. Name:. Daniela Jentsch email:. daniela
Contact details: Name: Daniela Jentsch
Name: Wolfgang Strohbach