Circular to Credit Institutions including Foreign Branches on the Supervisory Reporting Requirements – ITS v4.0

Circular
Triq l-Imdina, Zone 1 Central Business District, Birkirkara CBD 1010 +356 2144 1155 communications@mfsa.mt www.mfsa.mt Circular to Credit Institutions including Foreign Branches on the Supervisory Reporting Requirements - ITS v4.0 The Authority is hereby releasing a communication to inform all credit institutions and foreign branches about the updates in the supervisory reporting framework, Implementing Technical Standards (ITS) version 4.0. This Circular should be read in conjunction with all the respective Capital Requirements Regulation (CRR3) provisions and any regulations issued thereunder, including but not limited to the ITS on Supervisory Reporting (Commission Implementing Regulation (EU) 2024/3117), its Annexes, all templates, and instructions. The ITS updates align the European Banking Authority (EBA) Supervisory Reporting Framework with the newly introduced requirements under the Banking Package, CRR3 (Regulation (EU) 2024/1623) and CRD6 (Directive (EU) 2024/1619), ensuring that regulatory reporting evolves in line with the revised prudential framework. Institutions are also advised to note that Implementing Regulation (EU) 2021/451 is repealed through the adoption of the new Commission Implementing Regulation (EU) 2024/3117 (‘CIR’). The former regulation ceases to apply from 1 January 2025, except for specific provisions that remain in effect until 31 December 2025, as outlined in Article 25 of the final adopted CIR. The following table provides a breakdown of the key amendments introduced by ITS version 4.0, outlining the main changes across various reporting areas:
Reporting
Module Key amendments and impact on reporting COREP OF

• Output floor: Introduction of new reporting requirements to
  monitor the application of the output floor, ensuring that institutions’ risk-weighted assets (RWAs) do not fall below 72.5% of standardised approach calculations, as per CRR3. 13 March 2025

Circular
Triq l-Imdina, Zone 1 Central Business District, Birkirkara CBD 1010 +356 2144 1155 communications@mfsa.mt www.mfsa.mt COREP OF

• Credit Risk: Revised templates reflecting changes in credit
  risk methodologies, including: adjustments to the Standardised Approach (SA) risk weights and new loan￾splitting approach; introduction of specialised lending and credit risk mitigation adjustments; refinements to exposure classes and reporting requirements for defaulted exposures and sovereign risk.
• Market Risk: Updated templates to reflect the multiplication
  factors, adjusting own funds requirements; breakdowns by risk weights, particularly for securitisations and correlation trading portfolios, aligning with the updated risk weight categories in CRR3.
• Operational Risk: Introduction of minimum reporting
  requirements based on the new Basel III Standardised Approach (SA) for operational risk bringing about the use of the Business Indicator Component (BIC), replacing all previously existing approaches for the calculation of own funds requirements for operational risk. Templates now include detailed business indicators and their aggregation into operational risk capital calculations.
• Introduction of transitional reporting requirements for
  exposures to crypto-assets, capturing data on crypto-asset holdings, risk weights, and prudential treatments. Leverage Ratio Revised templates reflecting changes to exposure measurement and adjustments to Tier 1 capital deductions. LR calculation amended to exclude certain rows related to transitional provisions and to include stricter calculation measures.

Circular
Triq l-Imdina, Zone 1 Central Business District, Birkirkara CBD 1010 +356 2144 1155 communications@mfsa.mt www.mfsa.mt Transitional Provisions Recognising the operational adjustments required for these new reporting standards, the ITS on reporting includes transitional provisions affecting remittance dates for impacted specific reporting obligations:
Reporting Module Reference
Date Remittance Date
COREP Own Funds (COREP_OF) and COREP Leverage Ratio (COREP_LR) 31 March 2025 30 June 2025 (extended) Remaining modules reported with quarterly frequency 31 March 2025 12 May 2025 (standard deadline) From 30 June 2025 reference date onwards, all the modules reported with quarterly frequency will follow the standard submission deadline. IT Solutions and Reporting Templates To facilitate compliance, the EBA has made available IT solutions including reporting instructions on its website. Unlike previous ITS versions, where reporting instructions were annexed to the regulation, these are now maintained and updated separately for each framework release on the EBA website. Institutions are directed to access the reporting instructions from the EBA website and encouraged to regularly consult the website to stay informed of any changes or updates to the reporting requirements and to utilise these tools to ensure accurate and timely reporting. Technical Package The technical package for this framework release is available on the dedicated EBA website. It provides standard specifications and includes the validation rules, the Data Point Model (DPM), Filing rules and the XBRL taxonomies. Validation Rules Institutions are kindly requested to note the EBA’s most recent publication list of validation rules, as well as any future publications and are reminded about their responsibility to update their internal data processes accordingly.

Circular
Triq l-Imdina, Zone 1 Central Business District, Birkirkara CBD 1010 +356 2144 1155 communications@mfsa.mt www.mfsa.mt Additional Information The Authority would also like to advise about the update of the MFSA Supervisory Reporting webpage with information related to ITS v4.0 with the following information:

• Reporting templates and directory to the IT Solutions on the EBA website
• Guidelines for Credit Institutions to upload and review Supervisory Reporting data
  through the LH Portal
• Guidelines for Branches to upload and review Supervisory Reporting data through the
  LH Portal
• MFSA Guidelines to CRD Supervisory Reporting Requirements for Credit
  Institutions_ITS_v4.0
• MFSA Guidelines to CRD Supervisory Reporting Requirements for Credit
  Institutions_ITS_v4.0
• Remittance Timetable