The Committee of European Banking Supervisors (CEBS) today published guidelines on a common reporting framework (COREP) to be used by credit institutions and investment firms when they report their solvency ratio to supervisory authorities under the Capital Requirements Directive (CRD)*.
The implementation of the CRD provides CEBS with a unique opportunity to promote harmonisation and efficiency, since existing reporting requirements for credit institutions and investment firms will need to be revised in all EU member states. The common solvency reporting framework, together with the recently published financial reporting framework (FINREP)**, represents an important step towards convergence in supervisory practices within the EU. The framework provides sufficient flexibility to meet the reporting needs of different supervisory authorities, while adopting a standard terminology and methodology.
The solvency reporting framework should reduce the compliance burden on cross-border financial groups while also improving the exchange of information between supervisory authorities. Groups operating on a cross-border basis within the Single Market will benefit from more consistent supervisory reporting formats based on the common framework, and will be able to satisfy these reporting requirements using a single database and common vocabulary. The new framework should also contribute to promoting a smoother transition to the new regulatory framework set out in the CRD.
See full Press Release.
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