The European Banking Authority on Friday unveiled a set of proposals aimed at significantly simplifying supervisory data reporting requirements for European Union banks, while also launching a public consultation on the planned changes.
The initiative comes amid growing calls from major EU economies such as France and Germany for a more streamlined regulatory framework.
Both countries have urged the European Commission to introduce an ambitious financial services simplification package to make rules less complex and more manageable for firms operating within the bloc.
Proposed cuts to reporting requirements
According to the EBA, the proposed revisions would reduce the number of data points required under the EU’s harmonised reporting system by approximately 50%.
The regulator stated that the changes are designed to enhance proportionality, particularly benefiting small and non-complex financial institutions that often face disproportionate compliance burdens.
The EBA emphasised that despite the reduction in reporting requirements, supervisory authorities would continue to receive all necessary information to effectively carry out their oversight responsibilities.
Consultation timelines and scope
The authority has opened a public consultation on revised implementing technical standards related to supervisory reporting and supervisory benchmarking.
The consultation period will run until 10 July 2026.
Additionally, a separate consultation concerning requirements linked to International Financial Reporting Standards 18 will remain open until 10 May 2026.
The EBA noted that stakeholder engagement during this phase would play a critical role in shaping the final framework.
Addressing fragmented reporting systems
The EBA highlighted that EU-level reporting is often supplemented by national requirements and ad hoc data requests from various public authorities.
However, these additional layers frequently lack coordination, regardless of their relevance.
The regulator acknowledged that while initiatives such as the European Central Bank’s Single Supervisory Mechanism have improved coordination in certain areas, they do not cover the entire spectrum of reporting requirements across all member states.
As part of the new package, the EBA has included an overview of national supervisory data collection practices and ongoing simplification efforts by competent authorities.
Integration and efficiency measures
A key component of the proposal involves integrating separate EU-wide stress test and supervisory benchmarking data collections into the regular reporting framework.
The EBA stated that this integration would reduce duplication, improve consistency, and simplify reporting processes for banks.
Furthermore, the changes are expected to make reporting requirements more stable over time, reducing the need for frequent adjustments and easing operational challenges for financial institutions.
Implementation timeline and next steps
The proposed changes are scheduled to take effect from September 2027.
In the interim, the EBA plans to support implementation through close engagement with stakeholders, including public consultations, hearings, and workshops.
The move follows a broader trend among EU regulators to simplify supervisory processes.
Last month, the European Central Bank said it aims to streamline and accelerate approvals for changes to banks’ internal credit risk models, a process that has historically been time-consuming and resource-intensive.
Together, these efforts signal a coordinated push within the EU to reduce regulatory complexity while maintaining robust oversight of the banking sector.
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