EBA updates Pillar 3 disclosure requirements as part of simplification drive
The European Banking Authority (EBA) has published final draft Implementing Technical Standards (ITS), amending its Pillar 3 disclosure framework on ESG risks, while adding new requirements on equity and shadow banking exposures. The package completes the disclosure changes introduced under the third Capital Requirements Regulation (CRR 3).
Simplification is central. A new “core plus supplement” approach, scaled to a bank’s size and complexity, means, we understand, that large institutions will report 37% fewer data points than they do now, with steeper cuts for smaller firms. For Small and Non-Complex Institutions, the EBA will go a step further and pre-fill ESG information centrally in its Pillar 3 Data Hub, drawing on data they already submit through supervisory reporting.
The ITS are deliberately aligned with the European Sustainability Reporting Standards (ESRS), so banks can cross-refer between their Pillar 3 and ESRS disclosures rather than reporting the same thing twice. And to feed the Data Hub, the EBA will build a Data Point Model (DPM) and XBRL taxonomy for submitting digital, structured, reusable information, ensuring this reporting obligation results in data supervisors and analysts can put to work.
Read the press release here.
