ESMA workshop “Banks’ disclosures on expected credit losses (ECL) in IFRS financial statements”

Organizer: 
ESMA
Dates: 
September 28, 2021
Location: 
NA
Target Group: 
Event Language: 
English
Submission deadline: 
July 9, 2021

Background

1. ESMA contributes to the development of a single rulebook and to the strengthening of common supervisory approaches and practices across Member States in the area of corporate reporting.

2. By the end of 2021, ESMA intends to issue a report providing an overview of the application of the requirements of IFRS 7 Financial Instruments: Disclosures and IFRS 9 Financial Instruments regarding ECL disclosures by European banks, with the objective of assessing their level of compliance, transparency and comparability. ESMA may also use the feedback received in the workshop to contribute to the Post Implementation Review (PIR) of the impairment requirements of IFRS 9 that the International Accounting Standards Board (IASB) is expected to conduct in the future.

3. The report will be based on a review of the 2020 annual reports of a sample of European banks. The review addresses the following key topics: assessment of significant increase in credit risk (SICR), transparency of disclosures on credit allowances, granularity and disaggregation of disclosures on credit risk exposures and ECL, forward-looking information (macro-economic scenarios), sensitivity analysis.

4. ESMA considers it useful to discuss the preliminary results of the review with the preparers (European banks) and other interested stakeholders such as auditors, analysts, investors and academics with the involvement of national enforcers, before issuing the final report.

5. The workshop will be held on 28 September 2021, in the form of a conference call and will comprise a presentation of the results of the preliminary review and a subsequent discussion of the findings.

6. ESMA is therefore calling for expressions of interest from stakeholders by 9 July 2021 to participate in the workshop.

Expression of interest

7. This call for expressions of interest is open to European credit institutions and other organisations that play an important role for the financial markets in any part of the European Union. Each organisation may be represented by only one person.

8. After evaluation of the received completed forms, ESMA reserves the right to limit the number of participants and to select participants in order to ensure a balanced representation of different types of stakeholders as well as geographical representation.

9. Relevant stakeholders wishing to express their interest in the participation in ESMA’s workshop are invited to submit, in English, a completed expression of interest form.

10. The completed form must be submitted by no later than 9 July 2021 by email to the following email address: ini-assistants@esma.europa.eu.

11. Interested stakeholders will be informed about their registration in due course following the evaluation of received expressions of interest.