EBA uses digital data to assess EU bank risks and provide transparency
The European Banking Authority (EBA) has published its annual risk assessment of the European banking system for 2021. It finds improvements in banks’ solvency, profitability and liquidity, with fears about asset quality deterioration due to Covid-19 largely unrealised; looking ahead, however, price corrections remain a concern. Accompanying this in-depth report is the EU-wide transparency exercise which directly provides the detailed underlying information – consisting of a dataset of over 1.3 million data points – and “a wide range of interactive tools that allow users to compare and visualise data across time and at a country and a bank-by-bank level.”
We were interested to note that the exercise results are based on supervisory data submitted to the EBA via its European Centralised Infrastructure of Data (EUCLID) platform. This is “the platform and data infrastructure developed and used by the EBA to gather and analyse regulatory data from a wide range of financial institutions. It covers supervisory, resolution, remuneration and payments data.” The further leveraging of EUCLID is one of the EBA’s priorities for 2022. “Thanks to EUCLID, the public will be able to gain a wider access to EU banking and financial data,” says the EBA.
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