The Capital Requirement Regulations (CRR) includes the implementing technical standards (ITS) for reporting – this being the guidance, templates, technical standards and validation required for regulatory reporting of COREP and FINREP.
The Validation Rules for CRD IV are defined by the European Banking Authority (EBA). The EBA publish these validation rules upon their website, detailing which rules apply to which version of the taxonomy, including how severe they may be.
COREP Validation Rules - example of severity:
- EBA Non-blocking rules will be set as a WARNING. It should be noted that the regulator’s system will accept warnings, however firms should look to investigate the causes of these and resolve them for their future regulatory submissions;
- EBA blocking rules however will be set as ERROR in GABRIEL – which will result in a rejection of the file by the regulator; and
- EBA Deactivated rules will be set as DISABLED and will be ignored by the regulator.
The EBA’s validation rules as published on their website can be found here.