ECB plans to cut down small-bank FINREP reporting
On the European Central Bank’s (ECB) Supervision Blog, Supervisory Board Vice-Chair Frank Elderson has set out proposals to ease the burden on small and non-complex institutions (SNCIs). A consultation on slimmer financial reporting is due to open in 2027.
Bringing the SNCI category into the ECB’s Supervisory Financial Reporting (FINREP) Regulation would cut required data points from around 13,500 to roughly 700. Planned revisions to the European Banking Authority’s (EBA) implementing technical standards on supervisory reporting would also scrap numerous templates, remove overlaps and exempt SNCIs from others. The proposals also change the SNCI definition, including letting national authorities raise the asset threshold from €5 billion to as much as €10 billion. Together these changes could bring around 150 more banks into the category.
SNCIs already report only about 30% of the data larger banks submit. The proposals build on the recommendations of the High-Level Task Force on Simplification. With less direct contact and far fewer data points, supervisors will lean harder on the 700 that remain, making their quality more important than ever. Slimmer reporting is welcome, provided what is left arrives accurate, comparable, and digital.
Read more here.
