Common Reporting Framework XBRL Project

Owner

European Banking Authority

Supra-national authority

Contact information

Ignacio Boixo

1 Definition

COREP stands for “COmmon REPorting of the solvency ratio by credit institutions”. The COREP-Taxonomy provides an XBRL representation of the European Banking Authority (EBA) Common Reporting Framework. COREP is the common solvency ratio reporting framework for credit institutions and investment firms under future EU capital requirements regime.

2 Objectives

Reduce the administrative burden for institutions active in several European markets
Facilitate cooperation between supervisory authorities
Use of XBRL as a standard way to represent business reporting

3 Owner

The developer of the COREP Taxonomy was the Committee of European Banking Supervisors (CEBS). This committee was succeeded by the European Banking Authority (EBA), which took over all existing and ongoing tasks and responsibilities of the Committee of European Banking Supervisors (CEBS). The European Banking Authority was established by Regulation (EC) No. 1093/2010 of the European Parliament and of the Council of 24 November 2010.

4 Intended audience

The reporting population for COREP is credit institutions and investment firms.

5 Long description

The COREP framework is driven by CRR which was published in EU official Journal – Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firm.

COREP is the standardized reporting framework issued by the EBA for the Capital Requirements Directive reporting, which is a transposition of Basel III agreements to European legislation. It covers credit risk, market risk, operational risk, own fund and capital adequacy ratios. Regulated institutions are required to file periodically COREP reports, on both an individual and consolidated basis using XBRL (eXtensible Business Reporting Language).

COREP was developed in order to provide a prudential reporting scheme to enable institutions to communicate in a standardised way their results of the calculations of the minimum level of own funds and any component data required to the supervisory authorities under the Directives 2006/48/EC and 2006/49/EC, revised by Directive 2009/111/EC, 2009/27/EC and 2009/83/EC. This project then aims in particular to reduce the administrative burden for institutions active in several European markets and to facilitate cooperation between supervisory authorities.

Overall, the framework consists of five blocks of templates:

1. Capital adequacy, an overview of regulatory capital, including the appropriate filters between IAS Accounting Standards and regulatory capital; capital requirements; and, in the case of consolidated groups, an overview of the fulfilment of the solvency requirements by consolidated subgroups and individual affiliates;

Information related to the application of different approaches for the assessment of capital requirements for:

2. Credit risk (including counterparty, dilution and settlement risks);

3. Market risk (i.e. position risk in trading book, foreign exchange risk and commodities risk);

4. Operational risk;

Additionally, COREP embraces information on:

5. Large Exposures.

For each template legal references are provided. Further detailed information regarding more general aspects of the reporting of each block of templates, instructions concerning specific positions as well as examples and validation rules are included in these Guidelines for implementation of the Common Reporting framework.

The harmonization of the reporting framework was made by EBA. COREP contains references to FINREP, in order to ensure that the COREP framework is as consistent as possible with the standardised framework for FINREP.

6 Known implementations

This reporting framework has been adopted by almost 30 European countries. For example, all regulated organizations in the UK must use COREP to make their regular statutory reports since 1 January 2014.

7 History / Key milestones

On 26 July 2013 the EBA published final draft Implementing Technical Standards (ITS) on supervisory reporting, in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (colloquially known as Capital Requirements Regulation or CRR), comprising COREP/FINREP XBRL Taxonomy.