Banking Regulation - Reporting, Organisational Requirements, Governance And Risk Management

6.1 What key reporting and disclosure requirements apply to banks in your jurisdiction?

Banks are subject to extensive reporting requirements, and in particular prudential reporting requirements under 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, as amended (CRR). This includes reporting on own funds, financial information, large exposures, leverage, liquidity, losses stemming from lending collateralised by immovable property and asset encumbrance. The content and format of the reporting are harmonised by Commission Implementing Regulation (EU) No 680/2014 of 16 April 2014 laying down implementing technical standards with regard to supervisory reporting of institutions according to the CRR.

There are additional reporting requirements covered by Luxembourg provisions. Banks must, for instance, provide:

information on participating interests and subordinated loans; information on staff expenses and taxes; a list of their head offices, agencies, branches and representative offices; an analysis of shareholdings; and a list of persons responsible for certain functions and activities. Ad hoc reports may also be requested by the Commission de Surveillance du Secteur Financier (CSSF).

In order to assist banks with their reporting obligations, the CSSF published Circular 14/593, as amended, on supervisory requirements applicable to credit institutions, as well as Circular 19/731, which lists the documents to be submitted to the CSSF and the European Central Bank on an annual basis, as well as the appropriate timing for submission. The CSSF also published a guide on reporting requirements for credit institutions.

Depending on their activities, banks may also be subject to specific reporting requirements under specific regulations. For instance, Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories requires settlement internalisers (ie, credit institutions which execute transfer orders on behalf of clients or on their own account other than through a securities settlement system) to report to the CSSF on a quarterly basis the aggregated volume and value of all securities transactions that they settle outside securities settlement systems. Likewise, Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories and Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse require banks that are counterparties to derivative contracts and securities financing transactions, respectively, to report the details of such contracts and transactions to trade repositories.

...