ECB and EBA partner to improve banking industry data reporting

The primary aim of the Joint Bank Reporting Committee (JBRC) is to improve the harmonisation and integration of data reporting within the banking industry. In essence, the initiative aims to enhance efficiency and mitigate associated costs. 

The JBRC's main responsibility is to aid in the development of common definitions and standards for data that banks are mandated to report for statistical, supervisory, and resolution purposes. Officials from the ECB emphasised the significance of high-quality data in fulfilling their mandate and expressed satisfaction at the establishment of a structure simplifying and facilitating data reporting within the banking sector. 

Representatives from EBA underscored the priority of establishing a harmonised, proportionate, and fit-for-purpose reporting system, highlighting the JBRC's role in ensuring smooth governance for an integrated and efficient reporting process benefiting all stakeholders. 

The European Commissioner for Financial Stability, Financial Services and the Capital Markets Union positioned this initiative as an important component of the European Commission's supervisory data strategy, aimed at modernising reporting for EU banks and reducing the burden on reporting entities. 

Officials from the Single Resolution Board (SRB), the central resolution authority in the Banking Union, expressed full support for the initiative, emphasising the potential benefits of streamlined and harmonised approaches in improving information sharing among public authorities. 

The JBRC includes the ECB, EBA, European Commission, SRB, and relevant authorities with the power to issue supervisory, resolution, and statistical reporting requirements in European Economic Area Member States. The banking industry's participation will be through a consultative body, the Reporting Contact Group. 

A significant outcome of the JBRC will be the development of a common data dictionary for reporting statistical, supervisory, and resolution data by banks, focusing on establishing common concepts and definitions used in both new and existing reporting frameworks. The establishment of the JBRC is formalised through a Memorandum of Understanding signed by the ECB and the EBA.

Other noteworthy developments from the ECB 

In January 2024, the European Central Bank (ECB) announced its intention to conduct a stress test on the cyber resilience of 109 supervised banks in 2024. 

Through this assessment, the ECB gained the ability to evaluate the banks’ response and recovery time from cyberattacks, instead of the ability to prevent them. The scenario assumed that the cyberattack is successful and disrupts the bank’s daily operations. 

The stress test included 28 banks that went through an advanced verification for which they were required to submit additional details on how they handled the cyberattack. The sample covered multiple business models and geographic areas, aiming to offer an appropriate reflection of the euro area banking system, while also ensuring efficient coordination with other administrative activities.