CRD IV: compliance with the EBA's Guidelines on disclosure of encumbered and unencumbered assets - SUPERSEDED

Supervisory Statement 11/14

Update 22 October 2018

On Wednesday 21 June 2017 the PRA published Consultation Paper 10/17 ‘Compliance with the EBA’s Guidelines on disclosure: Composition of collateral for exposures to counterparty credit risk’ which proposed that SS11/14 would no longer apply to firms after the Regulatory Technical Standard (RTS) for disclosure of encumbered and unencumbered assets (EU) 2017/2295 came into effect. This RTS was published in the Official Journal of the European Union, and came into effect on Tuesday 2 January 2018. SS11/14 therefore ceased to apply to firms from Tuesday 2 January 2018.

 
Published on 19 December 2014

This supervisory statement sets out the PRA’s expectations relating to firms’ compliance with the European Banking Authority’s Guidelines on disclosure of encumbered and unencumbered assets (the EBA Guidelines) published on 27 June 2014. 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.

Background

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 (collateral received by an institution, by broad categories of product type).

The PRA will 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 seeks to reduce the risk that firms’ compliance with the EBA Guidelines could enable the use or non-use of liquidity assistance to be deduced. Firms do not need to apply for the waiver.

This supervisory statement explains the waiver 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.

PDF Supervisory Statement 11/14 

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