The European Banking Authority (EBA) has issued a draft technical package for version 4.1 of its reporting framework for banking institutions. The public comment period for the draft concludes on April 15, 2025, with the final version expected by the end of May 2025. The majority of reporting obligations are anticipated to take effect in June 2025, while the Instant Payments reporting is scheduled for April 2026. These timelines require banking institutions in the EU to take proactive steps to comprehend and adapt to the evolving requirements.

The updated reporting framework emphasizes greater data granularity, a broadened scope of reporting, and a heightened focus on new financial areas. The draft package provides a comprehensive look at the revised specifications, which include validation rules, the Data Point Model (DPM), and XBRL taxonomies essential for regulatory submissions. A significant component of this update is the transition to the DPM 2.0 standard, with the draft package presenting the data dictionary in both DPM 1.0 and DPM 2.0 formats. Institutions will need to understand the differences and move towards DPM 2.0 for future compliance.

Several key updates in the EBA 4.1 framework necessitate careful consideration:

- On "pillar 3 reporting," the inclusion of specific Pillar 3 templates for the Pillar 3 data hub indicates a regulatory focus on enhanced transparency. It "aims to facilitate a more comprehensive understanding of institutions' risk profiles and capital adequacy," according to both supervisors and market participants.

- Regarding "crypto-asset reporting," the package includes obligations tied to the Markets in Crypto-assets Regulation (MiCAR), recognizing the increasing regulatory focus on crypto assets. Institutions involved in these activities will need to adjust their reporting capabilities appropriately.

- The "standardization of instant payment reporting" reflects the inclusion of mandates from the Instant Payment Regulation, underscoring the significance of standardized data collection for effective risk oversight of this payment method.

- An "increased focus on ESG data" signifies the commitment towards sustainability in financial reporting, with the introduction of validation rules to support this goal.

Given the compressed timelines, particularly the June 2025 applicability date for many requirements, institutions must assess the potential effects on their existing reporting systems. This update marks a strategic evolution in regulatory expectations, demanding a forward-thinking approach to compliance. Institutions must navigate the increasingly complex landscape to ensure data accuracy and meet regulatory standards within the EU.