The European Central Bank (ECB) has proposed to reduce the information burden that banks have to assume in exchange for raising the quality of data and cooperation between supervisory agencies, according to a report published on Monday.
Specifically, the document has been prepared by the European System of Central Banks (ESCB), which includes not only the ECB itself, but also all the national central banks of the countries that are part of the European Union, regardless of whether they have adopted the euro or not. The report responds in this way to a similar proposal prepared by the European Banking Authority (EBA, for its acronym in English).
The report by the ECB and the rest of the national banks proposes to reduce the burden for banks to present excessive reports with regard to statistical, resolution and prudential documents, although without losing the informational content that is “essential” for the work of monetary policy, supervision and resolution of entities.
The ESCB considers that this reduction of the reporting burden could be achieved by implementing a “common and standard data dictionary” as well as a “common model” of data for statistical, resolution and prudential requirements. Likewise, it has also proposed streamlining procedures by harmonizing formats and eliminating duplications.
“These efforts should help reduce the reporting burden for banks and increase the quality of data received by authorities. As a result, banks should be able to reduce costs and authorities could better monitor developments in the banking industry” has stated the ECB.