The European Banking Authority (EBA) launched today its fifth annual EU-wide transparency exercise. In December 2018, together with the Risk Assessment Report (RAR), the EBA will release over 900000 data points on about 130 EU banks. The data will cover capital positions, risk exposure amounts, sovereign exposures and asset quality. This data disclosure, which provides the wider public with a consistent tool to access data on the EU banking system, is an important component of the EBA’s responsibility to monitor risks and vulnerabilities and foster market discipline.
The transparency exercise covers a wide sample of banks and countries and provides consistent time series of semi-annual bank-by-bank financial information since 2011.
In 2018, the sample of banks will be aligned with the one used for the 2018 EBA RAR and the exercise will be based exclusively on supervisory reporting data, which will keep the burden for the banks at a minimum.
The data for December 2017 and June 2018 will cover financial information on capital, leverage ratio, risk exposure amounts, profit and losses, market risk, securitisation, credit risk, exposures to sovereign, non-performing exposures and forborne exposures. The information reported will be mostly in line with the previous exercises, although the introduction of IFRS 9 has required a revision of FINREP based templates. In addition, sovereign exposures data will be enriched with additional information and aligned with the new supervisory reporting tables.
The EBA will start today the interaction with banks for supervisory reporting data population and verification. The data will be frozen in mid-November 2018 and the EBA expects to publish it in December 2018, together with the EBA 2018 RAR.