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Rethink Financial Reporting: SRB ex-ante contributions

Rethink Financial Reporting: SRB ex-ante contributions

XBRL has quickly become the de facto reporting language for financial information across the globe. For some credit institutions across Europe, XBRL will become part of their future – perhaps sooner than expected.

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What is Single Resolution Board (SRB) and Single Resolution Fund (SRF)?

Pillar II of the Banking Union became operational reality on 1 January 2016 with the Single Resolution Board (SRB) assuming full powers to resolve failing banks. The Board, along with National Resolution Authorities (NRAs) forms the EU’s Single Resolution Mechanism (Regulation (EU) No 806/2014).

The Board’s mission is to ensure the orderly resolution of failing banks using a clear set of resolution tools and powers, including the Single Resolution Fund.

The SRF aims to raise financial resources to be used by the Board in times of
financial distress, through annual contributions by credit institutions in
participating Member States.  

By 2024, the amount collected should theoretically correspond to at least 1% of the amount of covered deposits from all designated Banking Union credit
institutions. 

Contributions commenced in 2016 and are raised annually from institutions in scope at a solo level. The SRB is responsible for the calculation of ex-ante contributions, while NRAs are charged with the actual collection and transfer of contributions to the SRF. 

How does SRB calculate data on SRF contributions?

The SRB holds the authority to calculate the individual ex-ante contributions to the SRF annually due from participating Member States credit institutions.

Methodology of calculation as set out by the SRM takes into account the size and risk of each individual institution in distributing the annual target to reach the 2024 aim:

How does the SRB collect data on SRF contributions?

The collection of data by the SRB on individual institution’s ex-ante contributions above is standardised by a taxonomy published by the SRB, complete with filing and validation rules. This data can currently be submitted in one of two formats: Excel or XBRL (eXtensible Business Reporting Language).

It is expected that the SRB will move towards accepting data in only XBRL format for 2018 submissions.   

What do individual institutions report and when?

The annual submission of a reporting form from each institution in scope. The 2017 timeline is outlined below:

31 January 2017

Submission of the reporting form for the 2017 contribution period.

The reporting form consists of 6 tabs:

1. General information

2. Basic annual contribution

3. Deductions

4. Risk adjustment

5. Definitions and guidance

6. Validation rules

For more information see the SRF 2017 ex-ante template.

 

1 May 2017

The relevant National Resolution Authority is required to inform each institution in scope of its decision regarding their annual contribution. 

Who is affected?

The 19 participating Member States are: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.

The SRB has published a preliminary list of approximately 4000 institutions that must report for 2017.

KPMG's offering

Implementation of XBRL into firm’s existing reporting processes is a time-consuming and costly exercise.  KPMG’s Business Technology services can alleviate the pain of XBRL reporting. Software solutions are both intuitive and integrates into your current reporting system, using XBRL as a file format to provide a common, electronic format for business reporting. So, with the right software, keeping reporting systems up-to-date is simple. Contact us for more information or to book a demo.

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