(2014/192/EU): Decision of the European Central Bank of 24 February 2014 on the organisation of preparatory measures for the collection of granular credit data by the European System of Central Banks (ECB/2014/6)

This Decision defines preparatory measures which are necessary to establish in a stepwise manner a long-term framework for the collection of granular credit data based on harmonised ECB statistical reporting requirements. This long-term framework shall include by the end of 2016: (a) national granular credit databases operated by all Eurosystem NCBs, and (b) a common granular credit database shared between the Eurosystem members and comprising granular credit data for all Member States whose currency is the euro.

For the purposes of this Decision: (1) ‘central credit register’ (CCR) means a credit register operated by an NCB of the ESCB; (2) ‘credit register’ means a register that collects granular credit data from reporting institutions; (3) ‘granular credit data’ means information about credit exposures of credit institutions or other loan-providing financial institutions vis-à-vis borrowers, provided on a borrower-by-borrower or a loan-by-loan basis.

1 Preparatory measures to be undertaken in order to achieve the objectives set out in Article 1 shall include: (a) identifying relevant user needs and estimating related costs generated by proposals for the collection, quality assurance and data sharing procedures to be applied in the long term; (b) defining and improving the granular credit data sets to be collected under the long-term framework, in particular regarding the scope, the bounds of layers or strata in the borrower population and the other possible breakdowns, the level of detail of the data attributes and the quality of granular data collected; (c) organising the transmission of granular credit data in the preparatory phase in accordance with Article 4 and setting the quality standards which granular credit data obtained from CCRs or other credit registers need to comply with prior to the commencement of such transmission; (d) developing detailed operational arrangements specifying transmission, compilation, storage and use of the granular credit data that are to be tested and fine-tuned in the preparatory phase with a view to their subsequent incorporation in the long-term framework; (e) establishing a timetable for specific steps and deliverables to be completed by the individual NCBs and the ECB, including steps to be taken by the NCBs not presently having access to comprehensive granular credit databases, with a view to obtaining such access through development of an own CCR or by other means; (f) monitoring the progress achieved in respect of the measures listed in points (a) to (e), and identifying relevant adjustments if needed.

2 The STC shall, taking into account advice from other relevant ESCB committees as appropriate, prepare the decisions necessary for implementing the preparatory measures set out in paragraph 1 and submit them for adoption to the Governing Council. The STC shall report to the Governing Council on an annual basis on the progress achieved by the ECB and the individual NCBs.

3 With regard to NCBs which require a longer phase-in period during the preparatory phase for developing or obtaining access to comprehensive granular credit databases, the Governing Council may, during the preparatory phase grant individual temporary derogations from the obligation to apply specific preparatory measures defined under paragraph 1. The period of each individual derogation shall be strictly limited to the minimum time necessary for the NCB concerned to achieve during the preparatory phase compliance with the preparatory measures covered by this derogation, and shall in any event be set in a manner that allows the objectives laid down in Article 1 to be achieved in relation to all Eurosystem NCBs. During each period of derogation the NCB concerned shall report twice a year to the STC on its progress in achieving full compliance with the preparatory measures covered by the derogation. Any rights of access to confidential statistical information derived from granular credit data transmitted to the ECB as part of a specific preparatory measure shall be suspended in relation to any NCBs benefitting from a temporary derogation in relation to this measure. The Governing Council may decide that appropriate further restrictions are to be imposed on individual NCBs benefitting from any derogation under this paragraph.

1 To ensure proper alignment of the granular credit data to be collected in the long term with the statistical needs of prospective ESCB users, the STC shall, during the preparatory phase, organise the annual transmission from the NCBs to the ECB of readily available granular credit data, related to 30 June and 31 December, using an adequate level of anonymisation and aggregation concerning the information about the borrowers so as to ensure that individual borrowers cannot be identified. The first transmission shall occur at the end of March 2014, with reference to 30 June and 31 December 2013, and shall be based on the reference reporting scheme set out in the Annex. Any further transmissions shall be organised by the STC on the basis of the reporting scheme which will take account of the existence of readily available granular credit data and their characteristics, and ensure that the data collected are proportionate to the status of the preparatory work completed at the time of transmission. Data on borrowers belonging to institutional sectors other than non-financial corporations may be reported during the preparatory phase on an aggregated basis, provided that the NCB delivers relevant methodological information.

2 Individual NCBs shall transmit the requested granular credit data on the basis of the CCRs or other available granular credit databases. The NCBs benefitting, pursuant to Article 3(3), from a derogation from preparatory measures under Article 3(1)(c) with respect to specific data transmissions shall include information about their progress in achieving full compliance with the data transmissions requested during the preparatory phase in their reporting to the STC.

3 Data provided to the ECB pursuant to the first paragraph shall be transmitted in electronic form via secured remote access and stored in a secure area. Access to such data shall be limited to statistical experts included on the list communicated by the STC to the Governing Council prior to initiation of the transmission. The ECB shall include information on the security measures taken in the annual confidentiality report.

1 Data provided to the ECB pursuant to Article 4 shall be used to: (a) define and improve the granular credit data to be collected under the long-term framework and the respective data attributes, and (b) define and produce aggregated statistical information to meet the statistical needs of the ESCB users during the preparatory phase.

2 In addition to the access and use of aggregated statistical information, users within the ESCB not benefitting from a derogation under Article 3(3) may request permission to access and use disaggregated confidential statistical information derived from granular credit data transmitted pursuant to Article 4, provided that such access to confidential statistical information: (a) serves the objective of defining and improving the granular credit data to be collected under the long-term framework and the respective data attributes, and (b) does not involve direct access to original granular credit data collected by the NCBs or the ECB. Each user request shall be accompanied by a list of individual persons who will have access to the information concerned.

3 The user requests made under paragraph 2 shall be subject to assessment and approval by the Governing Council in accordance with the procedure adopted by the ECB. The STC shall assist the Governing Council in the evaluation of such requests.

Taking account of the views of the STC, the Executive Board of the ECB shall be entitled to make technical amendments to the Annex to this Decision, provided that such amendments neither change the underlying conceptual framework nor affect the reporting burden. The Executive Board shall inform the Governing Council of any such amendment without undue delay.

1 This Decision shall take effect on the day of its notification.

2 By 31 December 2014 the Governing Council shall receive a report analysing: (a) the status of the preparatory measures established by this Decision, and (b) the feasibility of replacing this Decision with an ECB legal instrument setting out harmonised ECB statistical reporting requirements and ensuring the establishment of a common granular credit database shared between the Eurosystem members and comprising granular credit data for all Member States whose currency is the euro, including an assessment of the feasibility of the timeline for the adoption of these measures as laid down in Article 1, in view of the progress achieved.

This Decision is addressed to the NCBs of Member States whose currency is the euro.