EBA Sets Out Plan to Cut Reporting Burden in Sweeping Overhaul of EU Banking Framework

Key Takeaways

• Major Simplification Push: The European Banking Authority is proposing a sweeping overhaul of supervisory reporting aimed at making the framework simpler, more proportionate, and better aligned with supervisory needs.
• 50% Reduction in Data Points: The plan would cut required reporting data points by around half, even as new requirements tied to IFRS 18, ESG, and trading book reforms are introduced.
• Integrated Reporting Model: Separate exercises like EU stress tests and supervisory benchmarking would be folded into regular reporting to reduce duplication and improve consistency.
• Proportionality for Smaller Banks: A “core plus supplement” approach is proposed to ease the burden on small and non-complex institutions.

Deep Dive

The European Banking Authority is moving to reshape how banks report data to supervisors across the European Union, unveiling a wide-ranging proposal aimed at simplifying one of the most complex, and often criticized, areas of regulatory compliance.

In a consultation launched this month, the EBA outlined plans to reduce the volume and complexity of supervisory reporting requirements while maintaining the quality of information regulators rely on to monitor financial stability. At the center of the proposal is a striking goal: cutting the number of required data points in EU-wide reporting by around 50 percent.

That reduction would come even as new reporting layers tied to IFRS 18, environmental, social and governance disclosures, and the Fundamental Review of the Trading Book are introduced, an indication that the regulator is attempting not just to trim requirements, but to fundamentally rethink how reporting is structured.

The effort reflects a broader recalibration underway in European financial regulation, where policymakers are increasingly focused on easing operational strain without weakening oversight.

François-Louis Michaud, the EBA’s incoming chair, described the package as an “unprecedented simplification,” emphasizing that the changes are designed to make reporting “simpler, smarter and more proportionate” while preserving the relevance of supervisory data.

From Fragmentation to Integration

One of the most consequential shifts proposed by the EBA is the integration of previously separate data exercises (most notably EU-wide stress tests and supervisory benchmarking) into the core reporting framework. Today, these exercises often run in parallel, creating duplication and forcing banks to navigate overlapping requirements.

Bringing them into a single reporting cycle is intended to reduce redundancy, improve consistency, and create a more stable reporting environment over time.

The EBA is also looking to tackle fragmentation across jurisdictions. Plans include the creation of a centralized EU repository of supervisory data requests, alongside guidance on best practices for data collection. Together, these measures are meant to give institutions clearer visibility into what is required of them, and why, while improving coordination between national and European authorities.

Relief for Smaller Institutions

A recurring theme in the proposal is proportionality. Smaller and less complex banks have long argued that reporting requirements designed for large, systemically important institutions can impose disproportionate burdens.

To address this, the EBA is proposing a “core plus supplement” model, which would allow small and non-complex institutions to meet a streamlined set of baseline requirements, with additional layers applied only where necessary.

The regulator is also considering adjustments to how often certain data must be reported and how broadly requirements apply, signaling a more flexible approach that could reduce the frequency and scope of submissions without undermining supervisory insight.

Data Architecture

Behind the policy changes sits a deeper shift toward modernized data infrastructure. The EBA’s proposals build on its Data Point Model 2.0 and related tools, which aim to standardize how data is defined, collected, and shared across the EU.

This push toward harmonization is part of a broader initiative to integrate prudential and statistical reporting, supported by a common data dictionary under the Joint Bank Reporting Committee.

For banks, that could mean fewer bespoke reporting formats and a clearer path toward automation—though it will also require investment in systems capable of supporting more structured, standardized data flows.

Consultation Now Open

The EBA has opened the proposals to public consultation, with feedback on most elements due by 10 July 2026. A shorter deadline of 10 May 2026 applies to IFRS 18-related changes. The authority has also scheduled public hearings and a workshop to gather industry input before finalizing the framework.

If adopted, the new reporting regime would take effect in September 2027, giving institutions time to adapt their processes and systems.

While the consultation focuses on technical standards, the implications run deeper. Supervisory reporting has long been a source of friction between regulators and the institutions they oversee, which is essential but often seen as overly complex and resource-intensive.

The EBA’s proposal suggests a shift toward a more balanced model, where the demand for high-quality data is matched by a recognition of the operational realities facing banks. Whether that balance can be achieved will depend on how the final framework evolves through consultation.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.