NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

EU watchdog to simplify data reporting for banks

Published 12/16/2021, 05:21 AM
Updated 12/16/2021, 05:25 AM
© Reuters. FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, July 14, 2021. REUTERS/Yves Herman/File Photo

By Huw Jones

LONDON (Reuters) - The European Union's banking watchdog announced on Thursday a multi-year project to simplify data reporting for the bloc's 6,000 lenders, creating a central hub to replace the multiple agencies to which they currently submit information.

The European Banking Authority (EBA) said a two-year feasibility study had concluded an integrated reporting system could be built so banks "define data once and report once" and improve the ability of regulators to analyse figures.

"Achieving an integrated reporting system will require strong commitment from all parties involved so as to ensure further data comparability, data sharing and coordination of reporting processes," the EBA said in a statement.

A first step will be to create a common "data dictionary" to ensure the data reported from banks across the EU is comparable so that regulators can analyse bloc-wide trends and build-up of risks.

The EBA gave no indication how much an integrated IT system based on the data dictionary would cost or how much money would be saved by banks in the longer run.

A 'big bang' move is ruled out, however.

"Any change should be implemented gradually so as not to disrupt the current processes and should foster the principle of proportionality," the EBA said.

© Reuters. FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, July 14, 2021. REUTERS/Yves Herman/File Photo

It will consult with banks through an informal joint committee to build a more detailed roadmap and cost estimates.

(EBA Integrated Reporting Graphic, https://fingfx.thomsonreuters.com/gfx/mkt/dwpkrznlmvm/EBA%20Integrated%20Reporting%20Graphic.PNG)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.