The long-term approach of the European System of Central Banks (ESCB) and its Statistics Committee (STC) to collecting data from banks aims to standardise and integrate existing ESCB statistical frameworks, as far as is possible, across domains and countries.
The main objective of this approach is to increase the efficiency of reporting and to reduce the burden for banks, while continuing to provide users with high-quality data. This approach relies on clearer concepts, definitions and requirements, which would help automate data processing and enhance data quality.
One element of this strategic approach – the ESCB Integrated Reporting Framework (IReF) – aims to integrate banks’ statistical reporting requirements. The other element – the Banks’ Integrated Reporting Dictionary (BIRD) – aims to help reporting agents efficiently organise information stored in their internal systems and fulfil their reporting requirements.
This strategy is supported by the ESCB’s previous work, which focused on bridging the reporting frameworks of the ECB and the European Banking Authority (EBA) from a methodological perspective.
Helping banks produce statistical reports
The pilot phase of the BIRD has been completed and the relevant documentation is now available at www.banks-integrated-reporting-dictionary.eu
The ESCB and the banking industry have worked together to produce the BIRD, which provides banks with up-to-date reference material to help them produce statistical and supervisory reports. This initiative was launched in 2015 and its documentation is freely available to all interested parties, who may decide whether or not to participate in the initiative. It aims to alleviate the reporting burden on banks and improve the quality of data reported to authorities.
The BIRD provides banks with a precise description of the data that should be extracted from their internal systems to generate reports and clearly defined rules for transforming these data in order to comply with reporting requirements.
BIRD activities are carried out by a group of experts from various national central banks and commercial banks, whose work is coordinated by the ECB.
These experts analyse reporting requirements addressed to banks and determine the data and related transformation rules required to meet them – a task which would otherwise need to be completed individually by every reporting bank. This, in turn, helps ensure that data reported by banks to authorities are comparable, consistent and comply with the requirements.
In the longer term, if the IReF (see below) is implemented, the BIRD would be associated with integrated data collection rather than with several distinct sets of reporting requirements. This would further increase the effectiveness of the approach.
Banks must comply with an increasing volume of granular and complex reporting requirements. The methods used to collect reporting data are not fully harmonised, which often leads to redundancies, overlaps and inconsistencies in the resulting datasets, and the approaches used to collect data differ across EU countries.
The IReF aims to integrate the ESCB’s existing statistical data requirements for banks, as far as is possible, into a unique and standardised reporting framework that would be applicable across the euro area and might also be adopted by other European countries.
The main focus of the project is on the requirements of the ECB’s regulations on balance sheet items, monetary financial institutions’ interest rate and securities holdings statistics, and AnaCredit. ECB statistical frameworks that do not directly relate to banks’ balance sheet assets and liabilities – for example, the ECB’s requirements relating to payments or money market statistics – do not currently fall within the initial scope of the exercise.
The approach aims to ensure proportionality through a derogation scheme designed to alleviate the burden for small reporting agents.
Integrating existing statistical requirements is expected to help banks with their data reporting, reduce redundancies, minimise the reporting burden and enhance data quality. Consistent and standardised reports across countries may bring additional benefits to banks with reporting obligations in different countries and statistical compilers and users.
The ESCB, in close cooperation with the banking industry, has initiated a cost-benefit analysis to assess the impact of the IReF on the supply and demand sides. In 2018, the ESCB will issue a qualitative stock-taking questionnaire, which will support the development of scenarios relating to various aspects of data collection and statistical production. This will be followed by a cost-benefit assessment questionnaire, which will help identify the most appropriate approach for the banking industry and the ESCB to take.
The cost-benefit analysis focuses on the statistical requirements that are within the scope of the IReF. References to supervisory reporting requirements may be included in the questionnaire to assess the IReF’s overall feasibility and relevance for stakeholders.
The ESCB aims to implement the IReF in 2024-27. However, this will be subject to a review following the results of the cost-benefit analysis.
For additional key facts and information on the IReF and how it relates to the BIRD, see the overview file below.
The IReF replaced the European Reporting Framework:European Reporting Framework (ERF): Key facts and information, June 2015