How would Europe’s banks fare under seriously adverse conditions – for example if the Covid-19 pandemic is prolonged? We’re set to find out; on 29 January the European Banking Authority (EBA) launched the 2021 EU-wide stress test, and released the macroeconomic scenarios for the test.
One of the reasons to collect and collate financial data through regulatory reporting is to make sure essential information is available to regulators in case of bank distress. But can policy-makers use the same data to understand which policy approaches might help reduce the impact of bank stress on the wider economy?
ING Bank in the Netherlands recently launched a new XBRL-based project designed to increase efficiency, trust and transparency in real estate valuation. Following the introduction of XBRL for real estate valuation reports, this new initiative includes the final piece in the puzzle: qualified, digital signatures.
Can central banks combat climate change? During a recent speech at the European Banking Congress, Jens Weidman, the President of the Deutsche Bundesbank and Chairman of the Board of the Bank for International Settlements, outlined the role central banks can – and cannot – play in moving towards a greener future.
After the 2008 financial crisis, governments around the world took steps to make it easier to resolve failing banks. In the UK, those steps included setting up the Resolvability Assessment Framework (RAF), which launched in 2019.
Banks’ ability to carry out climate change related stress tests could be vastly improved by standardisation of corporate ESG risk disclosures, according to a new report published by Fitch Ratings.
In May 2019 the European Banking Authority (EBA) adopted new rules regarding the Minimum Requirement for own funds and Eligible Liabilities (MREL) and the Total Loss Absorbing Capacity (TLAC).
In the context of a pandemic, it makes sense to ensure that as much activity as possible is done digitally. Last week saw the unveiling of a new initiative from Everbright Bank: digital bank receipts with embedded XBRL data for reuse and analysis.
Joining regulators around the world who are increasingly concerned about the impact of climate change on financial institutions, the Hong Kong Money Authority (HKMA) recently set out a supervisory approach designed to ensure banks build resilience to climate-related risk.
XBRL has a number of exciting projects in the pipeline – not least the expansion of structured, machine-readable data to all of Europe with next year’s ESEF mandate. However, sometimes it’s worth looking backwards to take note of successful implementations that have been humming along for some time now.
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XBRL International is a global not for profit operating in the public interest. Our purpose is to improve the accountability and transparency of business performance globally, by providing the open data exchange standard for business reporting.
