Asset Encumbrance

On 24 July 2014, the European Banking Authority (EBA) published its revised final draft of the implementing technical standards (ITS) on reporting for Asset Encumbrance (Reg (EU) 2015/79). These ITS on Asset Encumbrance complement the existing supervisory reporting framework (CoRep and FinRep) and provide supervisory authorities with a standardised and harmonised view of the level of asset encumbrance in institutions, thereby increasing the transparency of institution-specific risk profiles. Additionally, increased financial stability, depositor protection and reduced risk of systemic events are expected to result in reduced losses for institutions as well as for the Member States’ economies.

In mid-2016, the EBA held a consultation on regulatory technical standards (RTS) on the disclosure of encumbered and unencumbered assets. The draft features three templates that would allow market participants to better understand the quality of an institution’s asset structure. These rules have not yet been finalised.

BearingPoint offers with ABACUS/DaVinci a regulatory reporting software that covers all EBA reporting requirements for encumbered assets. ABACUS/DaVinci fills the forms of asset encumbrance reporting via standardised interfaces.  Disclosure requirements will also be covered by Abacus/DaVinci.

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