GBIC comments on EBA’s consultation on the draft ITS

The European Banking Authority (EBA) published a consultation paper in March 2023 amending the ITS on specific reporting requirements on market risks (FRTB reporting). The proposals set out in the consultation paper complement the existing reporting requirements that institutions must apply related to the FRTB approaches. The planned amendments will provide the supervisors with the necessary data to monitor institutions’ implementation of the FRTB approaches and their compliance with the own funds requirements for market risk. The consultation paper also illustrates a set of possible amendments to the ITS on supervisory reporting, mainly reflecting the trading book boundary framework. GBIC points out, among other things, that reporting requirements that are not based on existing metrics or that exceed the scope of the regulatory capital calculation should be avoided or designed as efficiently as possible in order to avoid unnecessary effort.