Regulatory Alerts2017-11-23
Communications - Harmonized Supervisory Reporting: Schedule for Transition to DPM/XBRL Methods
The Bank of Italy issued this communication on October 18, 2017, to update the transition schedule for harmonized European supervisory reporting to the Data Point Model (DPM) and XBRL formats. The document specifies effective dates for various reporting modules, notably delaying Additional Liquidity Monitoring, NSFR indicators, and Large Exposures to align with EBA standards and reduce compliance costs. It further confirms that FINREP IFRS 9 transition dates remain unchanged and mandates that intermediaries rely exclusively on European harmonized reporting rules, leading to the gradual repeal of previous circulars.
Communication of 18 October 2017 - Harmonized Supervisory Reporting: Schedule for Transition to DPM/XBRL Methods.
This communication follows the notice of 22 June 2016 no. 0814201/16, in which the decision was communicated to adopt for harmonized European supervisory reporting the data management, representation, and transmission methods defined by the European Banking Authority (EBA), based on the Data Point Model and XBRL format.
The schedule in Table 2 of the aforementioned communication reported the assumed transition dates for each of the affected information bases. The effective transition dates are communicated below, with modifications indicated in red.
| EBA/ECB Module | Current Information Base | Reporting Intermediaries | Reference Date for First DPM/XBRL Report | Deadline for First DPM/XBRL Report |
|---|---|---|---|---|
| ae_ind – Asset Encumbrance | only EY | Banks, SIMs | September 2017 | November 2017 |
| ae_con – Asset Encumbrance cons | E1 | Banking groups, SIM groups | September 2017 | November 2017 |
| corep_alm_ind - Additional Liquidity Monitoring – COREP only | YT | Banks | March 2018 (ex December 2017) | April 2018 (ex January 2018) |
| corep_alm_con - Additional Liquidity Monitoring – COREP cons (prudential scope) | 1T | Banking groups | March 2018 (ex December 2017) | April 2018 (ex January 2018) |
| corep_lcr_ind – Liquidity only | LY | SIMs | December 2017 | January 2018 |
| corep_lcr_con – Liquidity cons | L1 | SIM groups | December 2017 | January 2018 |
| corep_nsfr_ind – NSFR indicator only1 | Y | Banks, SIMs | September 2018 (ex March 2018) | November 2018 (ex May 2018) |
| corep_nsfr_con - NSFR indicator cons2 | 1 | Banking groups, SIM groups | September 2018 (ex March 2018) | November 2018 (ex May 2018) |
| corep_ind – Prudential only Y-YF | Banks, SIMs, financial intermediaries | June 2018 | August 2018 | |
| corep_con – Prudential cons 1-1F | Banking groups, SIM groups, financial groups | June 2018 | August 2018 | |
| corep_le_ind – Large Exposure only Y-YF | Banks, SIMs, financial intermediaries | September 2018 (ex June 2018) | November 2018 (ex August 2018) | |
| corep_le_con – Large Exposure cons 1-1F | Banking groups, SIM groups, financial groups | September 2018 (ex June 2018) | November 2018 (ex August 2018) |
The shift in the migration of Additional Liquidity Monitoring allows aligning the use of the new methods with the changes foreseen by version 2.7 of the DPM, which will take effect no earlier than March 2018³, avoiding double adjustment interventions and thus reducing transition costs. The postponement of the transition for NSFR indicator and Large Exposures reporting allows reporters more time to prepare the necessary interventions.
The dates previously communicated for the transition of reports related to the new FINREP for IFRS 9 are confirmed, which will involve the suppression of information bases M1, 3F, W1, and WN.
As the new collection methods become operational, intermediaries must make exclusive and direct reference for the production and submission of reports to the Bank of Italy (so-called primary reporting) to the European harmonized reporting legislation; in fact, the harmonized reporting provisions present in Circulars no. 115, 272, 286, and 154 will be gradually repealed.
1 A further delay is possible if this will allow incorporating the changes in European legislation currently under discussion, avoiding double adjustment interventions. 2 A further delay is possible if this will allow incorporating the changes in European legislation currently under discussion, avoiding double adjustment interventions. 3 The proposal sent by the EBA to the European Commission last April will presumably be approved by the end of the year and will enter into force with publication in the Official Journal of the European Union.