CRD IV: compliance with the European Banking Authority’s Guidelines on disclosure of encumbered and unencumbered assets

Consultation Paper 18/14
Published on 24 September 2014

Background

This consultation paper (CP) seeks views on the Prudential Regulation Authority’s (PRA’s) draft supervisory statement on the European Banking Authority’s  Guidelines on disclosure of encumbered and unencumbered assets (the EBA Guidelines) published on 27 June 2014.

The draft supervisory statement sets out the PRA’s expectations relating to firms’ compliance with the EBA Guidelines. The statement is not intended as guidance on meeting disclosure obligations other than the EBA Guidelines.

This supervisory statement is relevant to firms to which CRD IV applies.

Summary of the proposals covered by the CP

The ability of central banks to undertake liquidity assistance effectively, including the orderly disclosure of that assistance, is regarded as critical to financial stability.  In recognition of this, the EBA Guidelines allow competent authorities to waive the requirement to disclose template B.  The PRA proposes to waive the requirement to disclose template B of the EBA Guidelines for firms that meet at least one of three criteria.  By waiving this disclosure requirement, the PRA is seeking to reduce the risk that firms’ compliance with the EBA Guidelines could enable the use or non-use of liquidity assistance to be deduced.

The draft supervisory statement sets out the PRA’s waiver permitted under the EBA Guidelines and the PRA’s expectations as to the:

  • factors to be considered in determining the appropriate level of disclosure provided in complying with the EBA Guidelines;
  • basis of calculation to be applied where the EBA Guidelines require median values to be disclosed; and
  • frequency with which firms publish disclosures prepared to comply with the EBA Guidelines.

Responses

The consultation closed on Monday 24 November 2014.

PDFConsultation Paper 18/14

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