The Committee of European Banking Supervisors (CEBS) today published guidelines establishing a standardised financial reporting framework (FINREP) for credit institutions operating in the EU. This framework will enable credit institutions to use the same standardised data formats and data definitions for prudential reporting in all countries where the framework will be applied. CEBS believes that this will reduce the reporting burden for credit institutions that operate cross-border, and lower barriers to the development of an efficient internal market in financial services.
FINREP is designed for credit institutions that use International Financial Reporting Standards (IFRS) for their published financial statements, and that have to provide similar information in the periodic reports they are required to submit to their supervisory authorities. The introduction of international accounting and reporting standards provides an opportunity to converge and ultimately harmonise prudential reporting in Europe.
While convergence in supervisory practices is one of CEBS’ declared objectives, CEBS cannot be expected to achieve full harmonisation of prudential financial reporting requirements overnight. The information needs of national supervisors vary from country to country depending on their approach to prudential supervision. However, the consolidated financial reporting framework set forth in these guidelines represents an important step towards harmonisation and convergence in Europe.
See full Press Release.
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