February 12, 2025 – The European Banking Authority (EBA) has announced significant updates to the FINREP framework, aiming to enhance the efficiency and accuracy of regulatory reporting for financial institutions across Europe.
The latest changes, part of the EBA’s Reporting Framework 3.2, include several key modifications designed to standardize data formats and reduce redundancies. These updates are expected to improve the quality of data reported to authorities and reduce the regulatory burden on banks2.
Key Changes in FINREP Reporting:
- Harmonized Data Dictionary: The introduction of a harmonized data dictionary aims to provide a consistent approach to data extraction and transformation from banks’ internal IT systems.
- Enhanced Reporting Process: The new requirements extend beyond mere reporting scope, encompassing the entire reporting process. This necessitates significant restructuring and reevaluation of existing practices2.
- Pilot Projects: Preliminary pilot projects have shown promising medium to long-term cost savings for reporting systems, encouraging early adoption.
- Alignment with Other Initiatives: The changes are aligned with other regulatory initiatives such as the Banks Integrated Reporting Dictionary (BIRD) and the European Single Access Point (ESAP).
Financial institutions are encouraged to initiate preliminary studies for potential implementation to effectively manage the evolving regulatory landscape. The EBA believes these changes will ultimately lead to more efficient and accurate reporting, benefiting both banks and regulatory authorities.
For more detailed information, visit the EBA’s official website.
