Implementing Regulation (EU) 2022/2454, which lays down implementing technical standards for Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate, has four objectives:

1. Harmonization and standardization of reporting: The Regulation aims to harmonize the reporting of risk concentrations and intra-group transactions by financial institutions. This is intended to ensure that the relevant data is submitted to the competent supervisory authorities in a standardized form and uniform format.

2. Improving supervision: Detailed and standardized reporting of risk concentrations and intra-group transactions is intended to enable supervisory authorities to better monitor and assess the risk situation and exposures of financial groups. This is important for the stability of the financial system, as such risks can potentially pose systemic threats if monitored incorrectly or inadequately.

3. Increasing transparency: The Regulation helps to increase transparency within financial groups by ensuring that information on significant risk exposures and internal transactions is disclosed regularly and in a standardized manner.

4. Reducing the administrative burden: The introduction of uniform standards and reporting formats is also intended to reduce the administrative burden on financial institutions. Institutions no longer have to meet different requirements in different Member States and can instead focus on a standardized reporting process.

The Regulation stipulates that, from 31 December 2023, financial institutions must submit their reports in a standardized format: XBRL (eXtensible Business Reporting Language). This standardized format makes it possible to achieve the objectives outlined above. Structured, machine-readable reporting significantly facilitates the processing, analysis and exchange of financial data by supervisory authorities. The quarterly generation of these XBRL reports requires software support.