The EU-Commission has adopted a Delegated Regulation supplementing the Capital Requirements Regulation (CRR). It is regulating the RTS for the disclosure of encumbered and unencumbered assets.
Based on the technical standards drafted by the EBA and building on the EBA disclosure guidelines, the Delegated Regulation sets out the data required for asset encumbrance disclosure, which includes:
- the amount of encumbered and unencumbered assets under the applicable accounting framework by asset type;
- collateral received by asset type;
- liabilities associated with encumbered assets and collateral received; and
- narrative information relating to the impact of the business model on the level and importance of encumbrance.
The format disclosure should take is provided for in templates annexed to the Delegated Regulation.
Coming into force Delegated Regulation
The Delegated Regulation will enter into force on the twentieth day following its publication in the Official Journal whereas the application of additional disclosure requirements concerning asset quality indicators has been deferred by one year so that institutions can develop necessary IT systems.