The European Banking Authority (EBA) unveiled, on Monday 7 June, 25 recommendations to ensure an even more proportionate application of reporting requirements in order to reduce the administrative burden for small banking entities located in the European Economic Area.
These recommendations could lead to a reduction in reporting costs in the range of 15-24% of total costs, or a savings of between 188-288 million euros, according to the EU authority.
They are based on a detailed EBA study covering three areas: - the costs of reporting required by the supervisory framework, including technical standards; - analysis of the impact of the reduction of certain reporting costs on supervisory effectiveness; - analysis of the proportionality of reporting requirements to the benefits derived.
The study also shows the need to remove barriers to wider adoption of FinTech and RegTech solutions by financial institutions. The same applies to the promotion of increased digitalisation of internal documents and contracts of small and non-complex institutions.
See the study: https://bit.ly/2RwhZD9 (Original version in French by Mathieu Bion)