EBA监督报告

其他信息

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What is an encumbrance?: Before we get to asset encumbrance, we must first understand the definition of an “encumbrance.” Encumbrance is a promise to spend money in the future for a specific purpose.

What is asset encumbrance?: The definition of asset encumbrance means different things to different job functions.

What does encumbrance mean in finance?: In finance, encumbrance refers to the controls accounting systems use to prevent overspending. Encumbrances determine the purpose of funds before organizations have spent any money or made a purchase.

What does encumbrance mean in accounting?: In accounting, asset encumbrance refers to restricted funds that are reserved for a specific liability.

What does encumbrance mean in banking?: Asset encumbrance is the process banks go through to secure or collateralize a claim. Banks must specify assets that creditors can take possession of if the bank fails to meet its commitments. If a borrower defaults, the lender can liquidate the asset to recover their cash. Asset encumbrance is also known as pledging or earmarking.

Where does asset encumbrance occur?: Asset encumbrance occurs in transactions that are asset-backed. Some examples of this are market funding, insurance claims, repurchase agreements, securitizations, covered bonds, or derivatives.

What is FINREP?: The meaning of “FINREP” itself is “Financial Reporting.” The European Economic Area (EEA) and the European Banking Authority (EBA) requires banks to create FINREP reports. Enacted September 30, 2014, FINREP increased the amount of information banks had to disclose in their financial reports. Specifically, the income statement and balance sheet must now highlight more granular data from the general ledger. In addition, FINREP requires banks to submit quarterly reports that contain a whopping 40+ forms/templates and 3,500 data fields.

What are the objectives of FINREP?: FINREP’s objective, summarized by PWC, is as follows: 1) Standardize reporting: To standardize reporting requirements across Europe in order to reduce the impact of multiple regular reporting requirements from different European supervisors; 2) Central repository: Establish a central repository for European banking data to enable improved risk identification and management for cross-border institutions; 3) Enable analysis: Facilitate peer reviews, trend predictions, risk analysis and provide greater transparency, especially on cross-border institutions; 4) Data Sharing: Enable data to be easily shared with national and international authorities, supervisory colleges, ESRB and ESAs.

Who is affected by FINREP?: FINREP applies to credit institutions, banks and investment firms that are listed on a stock exchange, prepare IFRS compliant financial statements, and are subject to CRD IV.

Why was FINREP introduced?: To promote greater transparency, the EEA and the EBA wanted to harmonize European banks and investment companies. The solution? They introduced the Capital Requirements Directive IV (CRD IV) which came into effect January 1st, 2014. The regulation requires two reports: Common Reporting (COREP) and Financial Reporting (FINREP).

What is ALMM reporting (EBA)?: The European Banking Authority (EBA) issued a set of reports, including FINREP and COREP, which fall under the category of supervisory reports. These supervisory reports handle the recognition and reporting forms for financial companies, banks, securities, investment companies and other financial intermediaries referred to in Article 107 of Legislative Decree 385/93. The supervisory statistical reporting takes a closer look at the consolidated data of balance sheets and income statements, registered from information on individual companies belonging to the banking group. The reports require additional data relating to credit quality, securitization, life remaining derivative contracts, infra-group reports. Additional information relating to prudential supervision of heritage, solvency ratio, large risks, market risks, and the position international investment is also needed. Regulatory reporting is one of the means through which the financial institution controlling entities analyze the financial situation of the institution.

How does ALMM reporting (EBA) apply to the banking business?: For the banking business, the international regulatory standards are defined by the Basel Committee on Banking Supervision. This standardization body edicts guidelines on reports that banks have to provide their supervisory body. The latest set of guidelines is called Basel II and is currently enforced by the supervisory bodies. The general guidelines are adapted to each country via Country Specific Adjustments. For the insurance business, the solvency accord has instituted similar guidelines. Generally, these guidelines are oriented around: 1) ensuring sound financial practices; 2) ensuring the level of capital of the financial institutions covers the level of risk taken; 3) including correlation between various kinds of risk. They tend to ensure that in case the risks faced by the institution realized themselves the institution has the required available funds to cover the losses.

What is COREP (EBA)?: Together, the European Economic Area (EEA) and the European Banking Authority (EBA) wanted to ensure better financial transparency and harmonize European banks and investment companies. They introduced the Capital Requirements Directive IV (CRD IV) which came into effect January 1st 2014. The regulation requires two reports: Common Reporting (COREP) and Financial Reporting (FINREP). COREP’s goal is to increase transparency in regulatory reports and standardize requirements for capital and risk. It does this by requiring reporting entities to disclose granular data, especially in terms of credit risk, market risk, operational risk, own funds and capital adequacy ratios. According to PWC, COREP impacts members of the European banking industry in four areas: 1) COREP standardizes reporting requirements across Europe: prior to its implementation, there were multiple reporting requirements from different supervising authorities 2) A central repository for banking data: a central repository promises to improve the understanding, management and identification of risk for entities that cross borders 3) Enable analysis: by standardising information, it is easier to predict trends, conduct peer reviews, analyze risk and see an apples to apples view of banking institutions 4) Data sharing: a templated version of data requirements from a central repository allows more effective sharing with authorities, supervisory colleges, ESRB and ESAs

What is COREP (EBA) for banking businesses?: 1) Group Solvency/Large Exposures; 2) Market Risk; 3) Capital Adequacy; 4) Credit Risk; 5) Operational Risk.