7.6.2024 - Summary of minutes

Place: Microsoft Teams

Present: Officials of the Bank of Finland (BoF) and Financial Supervisory Authority (FIN-FSA). Industry representatives from OP Financial Group, Aktia, Nordea, Savings Banks Group and ALM Partners

1. Opening of the meeting and update on current IReF topics

• Plenty of progress has been made during the summer in the IReF project on the ECB side
  
  • The second summary of matching notes is being commented by the WG-IRDD working group
• An industry representative asks whether a schedule for the roll-out of the IReF has been published already
  • BoF responds it has not been published yet
• The intention is to implement a common data collection and compilation system as a cloud service managed by the ECB

2. New topics in the summary of matching notes

• • Legislation applicable to the loan agreement is being proposed as a new reportable data item
  • IReF will also enable the submission of probabilities of default (PD values) generated by other methods than IRB
  • A decision has been made not to collect more detailed information in IReF on loan purpose than the requirements based on current Regulations
    • BoF would prefer still further consideration of this issue
  • Loan inception and termination types will not be inquired in the common part of IReF
  • Splitting of outstanding nominal amount (ONA) will not be included in IReF
  • Data on protection issuer will be collected in IReF
  • Repurchase agreements (repos) will not be inquired in the mandatory, common part of IReF
  • As regards reclassifications, the intent is to create a structured and uniform way of reporting
  • More detailed information on derivatives will be collected in IReF
    • The intention is to harmonise classifications and definitions with FINREP
  • Attributes concerning climate change
    • Items to be reported include sector at a four-digit level and the location of real estate collateral
    • Further examinations will be made about reporting the identifier of real estate collateral
  • For real estate loans, it will be reported whether the property is commercial real estate as defined by the ESRB
  • As regards balance of payments statistics, actual banking group data is going to be collected annually through FINREP
    • IReF will have separate reporting on whether the item is a direct investment for the purposes of the balance of payments
  • When revising IReF reporting, all data items will be resubmitted and not just the revised ones