Circular to Credit Institutions including Foreign Branches on the Supervisory Reporting Requirements – ITS v3.3

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 v3.3 Pursuant to the Implementing Technical Standards (ITS) on Supervisory Reporting (Regulation EU 2021/451), the Authority is releasing a communication to inform all credit institutions and foreign branches about the updates in supervisory reporting mandates, particularly focusing on ITS version 3.3. This Circular is mainly intended to remind about the main changes brought about by the amendments to the supervisory reporting framework, as outlined in the MFSA Circular to Credit Institutions including Foreign Branches on the Supervisory Reporting Requirements – ITS v3.3, dated 16 August 2023 and to provide additional information concerning the specific reporting requirements, including the remittance dates. This Circular should be read in conjunction with all the respective CRR provisions, the ITS on Supervisory Reporting as well as the Annexes, including all templates and instructions. Supervisory Reporting for Intermediate EU Parent Undertakings (IPU) Threshold Monitoring Institutions are reminded about their obligations concerning the ‘Regulatory Reporting of the IPU Monitoring Threshold’ requirements, as outlined in the Banking Rule BR/30 on establishing an Intermediate EU Parent Undertaking and to provide the required information to the Authority, utilising Annex II Template for IPU threshold monitoring for the upcoming annual data collection, by no later than 26 May 2024. Environmental, Social and Governance (ESG) Ad-hoc Data Collection • Large institutions which have issued securities that are admitted to trading on a regulated market of any Member State, as defined in point (21) of Article 4(1) of Directive 2014/65/EU, are reminded about the requirement to report the ESG data on a semi-annual basis, commencing as of December 2023 reference date. The first reporting for the above reference date (annual data) is required to be submitted by no later than 17 June 2024, followed by the semi-annual reporting, with the reference date set as of June 2024, to be submitted by 12 December 2024. Thereafter and until 13 November 2023

Circular Triq l-Imdina, Zone 1 Central Business District, Birkirkara CBD 1010 +356 2144 1155 communications@mfsa.mt www.mfsa.mt further notice, in-scope institutions are required to continue reporting this data semi￾annually. • The EBA Q&A 2022_6652 provides additional clarification regarding the scope of this reporting requirement, in particular the criteria for fulfilling the ‘large and listed condition. • In line with the ECB communication to the Competent Authorities, extending this reporting requirement beyond the EBA Decision EBA/DC/498, Significant Institutions at the highest level of consolidation and targeted subsidiaries are required to report part of this module (specifically templates D 01.00, D 02.00.a and D 02.00.b) for December 2023 reference date only and submit to the Authority by no later than 15 March 2024. This requirement needs to be fulfilled by institutions regardless of whether the entity falls in-scope of the EBA Decision. Those that do fall in-scope of the latter are therefore required to decide accordingly with regard to submitting partial module only, by the remittance date listed in this paragraph, followed by a resubmission of the entire module required by 17 June 2024, or, alternatively, fulfil this reporting requirement entirely by 15 March 2024. • Institutions are kindly requested to refer to the Commission Implementing Regulation (EU) 2022/2453 on ESG risk, including its Annexes outlining the phased-in requirements for selected templates to be submitted in this module. Additional information in this regard will be also provided in due course following the update of the MFSA Supervisory Reporting webpage and relevant guidelines, with information related to ITS v3.3. • Further information on the transmission of the data to the Authority will be provided in due course. In addition, institutions are also reminded about specific adjustments required with respect to the monetary values to ensure correctness of the information being transmitted in the XBRL files. Please refer to the ‘Filing rules’ section of this circular for more information. • In addition to this ad-hoc data collection, a separate communication will be issued directly to the reporting entities regarding the Climate risk reporting requirements under the Short-Term Exercise (STE) data collected from Significant Institutions by the ECB. Interest Rate Risk in the Banking Book (IRRBB) Ad-hoc Data Collection • Institutions forming part of the sample of the annual EBA Quantitative Impact Study (QIS) are reminded about the requirement to report the IRRBB data for December 2023 reference date. The submission by in-scope institutions to the Authority of this one￾time reporting is required to be made by no later than 19 February 2024. • In line with the ECB communication to the Competent Authorities ,extending this reporting requirement beyond the EBA Decision EBA/DC/501, Significant Institutions at the highest level of consolidation are expected to continue submitting the complete

Circular Triq l-Imdina, Zone 1 Central Business District, Birkirkara CBD 1010 +356 2144 1155 communications@mfsa.mt www.mfsa.mt module for March 2024 and June 2024 reference dates by 21 May 2024 and 19 August 2024 respectively. • In addition to this ad-hoc data collection, a separate communication will be issued directly to the reporting entities regarding the IRRBB reporting requirements under the Short Term Exercise (STE) data collected by the ECB. Technical Package With regard to the above mentioned ad-hoc data collections, institutions are requested to submit reporting in XBRL format, using the technical documentation as published by the EBA on their website dedicated to the v3.3 framework release. The technical package has been published in three phases. It provides standard specifications and includes the validation rules, the Data Point Model (DPM) and the XBRL taxonomies. In the future, this technical package will also be used for the Implementing Technical Standards (ITS) on supervisory reporting concerning IRRBB, currently being adopted for the purpose of Reporting framework v3.4. Filing Rules In October 2023, the EBA published the Filing rules v5.3 document, with specific instructions regarding the ESG ad-hoc collection (as per EBA/DC/498). To ensure the correct information is being transmitted to the EBA using the XBRL format, monetary values reported in accordance with Pillar 3 ESG disclosures, should be adjusted to represent units. For the purpose of compiling the XBRL files for this particular reporting, institutions should use precision “-6” (@decimals >= “-6”). 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 the data processes accordingly. Additional Information A separate communication, including instructions on the transmission of the data to the Authority, will be issued in due course following the update ofthe MFSA Supervisory Reporting webpage with information related to ITS v3.3.