SRB Set to Shift to Full XBRL Reporting Next Year
Andreas Weller of the Single Resolution Board (SRB) made a presentation at Eurofiling last week about their upcoming shift to full XBRL reporting.
The SRB are the authority charged with forming the single resolution mechanism (SRM) – a framework for the orderly closing (resolution) of failing banks within the EU, and a solution to the ‘too big to fail’ problem that the 2008 financial crisis revealed.
As part of their remit, the SRB draft resolution plans for banks assess bank’s resolvability and, where necessary, trigger resolution. This requires a lot of data – from assets and financial reporting to funding plans and liability data, amongst others.
For the past few years the SRB have been receiving this data in a mix of Excel and XBRL, however, with the increasing uptake of XBRL for financial reporting across Europe, from 2020 the SRB will collect all their data in XBRL.
This should make SRB data collections harmonious and high quality. It will be easy to compare and check data submissions across different institutions, and writing resolution plans that use data submissions from varied sources will also be a simpler task. For an organisation that relies so heavily on a mix of different data sources, standardisation of that data is a natural next step.
The eventual goal is for much of this information to be available from relevant banks on a more or less “on demand” basis – in the event of a widespread financial crisis, or a liquidity crunch at a single bank, authorities can’t rely on information that might be weeks or months old.
Read more here.