Circular to Credit Institutions on the Implementation of Automated and Additional Data Quality Controls on Supervisory Reporting

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 on the Implementation of Automated and Additional Data Quality Controls on Supervisory Reporting Further to the MFSA Circular to Credit Institutions on the Implementation of Additional Data Quality Controls on Supervisory Reporting dated 21 February 2022, the Authority is hereby informing credit institutions on developments with respect to the implementation of additional data quality checks by the ECB. On 9 September 2022 the ECB has launched an enhancement in its data processing and validation engine, known as SUBA. The update enables additional data quality checks automatically applied to Supervisory Reporting submissions. This includes the application of Cross-Module Validation Rules – data quality controls across two or more Supervisory Reporting modules, and Cross-Time Validation Rules – data quality controls across different reference dates. The ECB has informed the Authority that it plans to gradually phase-in the implementation of the cross-module validation rules in the coming months. Against the above background, Supervisory Reporting submissions and resubmissions made after 9 September 2022 through the LH Portal under project ‘ITS on Supervisory Reporting’, which will subsequently and automatically be forwarded to SUBA, will be assessed and validated against these data quality validation rules. As a result, institutions may experience an increased number of failing data quality checks for their (re)submissions. The Authority will continue sending the ECB SUBA feedback bilaterally to institutions. As per current practice, institutions are requested to rectify the emanating data quality issues through a resubmission and/or explanation, with the exception of ECB EGDQ checks for Less Significant Institutions which for the time being are requested to rectify these on a best effort basis. This Circular does not currently apply to branches of EU/EEA credit institutions established locally under the freedom of establishment and to non-EU credit institutions licensed to establish a branch in Malta. Any queries should be addressed to Bankingdata@mfsa.mt. 23 September 2022