Supervisory reporting enhanced in EU
The EBA and EIOPA have published DPM Standard 2.0, improving supervisory reporting. This robust standard addresses data challenges and fosters collaboration, harmonization, and digital processing of regulatory data.
EBA and EIOPA Introduce Enhanced Supervisory Reporting Standard
The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have jointly published Data Point Modelling (DPM) Standard 2.0 to foster collaboration and harmonisation in the field of supervisory reporting. This enhanced standard significantly improves upon the current one and serves as a critical element of the EBA and EIOPA's data dictionaries and reporting frameworks. DPM Standard 2.0 addresses the challenges of increased volume, granularity, and complexity of data and lays the groundwork for a robust and future-proof data dictionary supported by adequate management tools. This new standard supports the entire reporting lifecycle, from data definition to data exploration, and aims to enhance collaboration, harmonise processes, and improve digital processing of regulatory data required by authorities.
Supervisory Report Standard 2.0: Collaboration and Harmonisation
This enhanced standard significantly improves upon the current one and serves as a critical element of the EBA and EIOPA's data dictionaries and reporting frameworks. DPM Standard 2.0 addresses the challenges of increased volume, granularity, and complexity of data and lays the groundwork for a robust and future-proof data dictionary supported by adequate management tools.
The introduction of DPM Standard 2.0 has several implications for the financial sector. By providing a consistent approach for modeling reporting requirements, the standard aims to facilitate the future integration of concepts and definitions (semantic integration) in a common data dictionary. This could lead to increased efficiency and reduced costs in reporting processes across the sector. Furthermore, the enhanced standard may pave the way for the construction of a single cross-sectoral dictionary for the entire financial sector, leading to greater consistency and interoperability of data and systems. This, in turn, could improve regulatory compliance and oversight, as well as enable better data-driven decision-making within the industry.
The impact for financial institutions in the EU could be changes in the reporting requirements and processes due to the adoption of DPM Standard 2.0. This includes increased emphasis on data quality, volume, granularity, and complexity in reporting. Financial institutions may need to make potential adjustments to data management tools and systems to comply with the new standard. However, these changes also present an opportunity for enhanced collaboration and harmonization among financial institutions and regulatory authorities. The improved digital processing of regulatory data will contribute to a more streamlined and efficient reporting ecosystem.
To stay compliant with DPM Standard 2.0, financial institutions should consider several mitigating efforts. This includes reviewing and updating internal data definitions and reporting processes to align with the new standard. They should enhance data collection, validation, and storage capabilities to meet the increased requirements. Investment in suitable management tools and technologies is crucial to support the reporting lifecycle. Collaboration with industry peers and engaging with regulatory authorities will facilitate the exchange of best practices and ensure compliance.
As work on the standard progresses, the EBA and EIOPA will be sharing more information on next steps and organizing specific events to further engage stakeholders in the process. Overall, the adoption of DPM Standard 2.0 could significantly transform the landscape of supervisory reporting and contribute to a more harmonized and efficient financial sector. It will establish a common data dictionary, promote semantic integration, and enable greater consistency and interoperability of data and systems. Financial institutions will need to adapt their reporting practices and leverage appropriate management tools and technologies to comply with the new standard. By embracing these changes, the industry can improve regulatory compliance, enhance decision-making capabilities, and drive the overall efficiency of the financial sector.
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