JBRC - Advice on the implementation of the NACE Rev. 2.1

General Information

This document is a report titled "Advice on the implementation of the NACE Rev. 2.1", published in 2025 by the European Banking Authority (EBA) and the Joint Bank Reporting Committee (JBRC). It concerns the harmonized implementation of the statistical classification of economic activities NACE Revision 2.1 (NACE Rev. 2.1) in European banking reporting frameworks. The scope covers banking institutions subject to ECB and EBA regulations, as well as national central banks (NCB) in the European Union. The application period starts on January 1, 2026, with an official adoption of NACE Rev. 2.1 for European statistics from 2025.

Executive Summary

The report addresses the implementation of the new version of the statistical classification of economic activities in the European Union, NACE Rev. 2.1, adopted by the European Commission in October 2022 and applicable to European statistics from 2025. This update impacts several banking reporting frameworks, notably those of the ECB and EBA. The central issue is to ensure a harmonized implementation across these frameworks to minimize costs for banks and guarantee comparability and consistency of reported data. The JBRC recommends that all concerned institutions apply NACE Rev. 2.1 from January 1, 2026, thus avoiding complex recalculations and ensuring consistency between statistical and prudential reporting. The report also details the necessary adjustments in various frameworks, notably FINREP, Large Exposures, Pillar 3 disclosures, and ESG reports. It emphasizes the importance of national central banks following the same timeline for their national statistical collections. Finally, the JBRC supports that this harmonization optimizes the analytical value of data and reduces operational costs related to the transition.

Context and Objectives

The NACE classification is a key tool for economic statistics in the European Union. Version NACE Rev. 2.1, adopted in October 2022, replaces the previous version used for data from 2008 to 2024. The JBRC was mandated to assess the possibility of a harmonized implementation of this new classification in various banking reporting frameworks, to avoid high costs for banks linked to staggered implementations. The document aims to provide advice on the application date, practical modalities, and impacts on statistical, prudential, and resolution reporting frameworks. The limitations mainly concern regulatory deadlines for template adjustments, notably within the EBA framework, and the need to ensure consistency between different reporting systems.

Summary of Key Points by Theme

Harmonized implementation: The JBRC stresses the importance of a simultaneous adoption of NACE Rev. 2.1 on January 1, 2026, in all European reporting frameworks (ECB, EBA, NCB), to reduce costs and improve data comparability (p. 1-3).

Impacted reporting frameworks: The NACE Rev. 2.1 classification affects several frameworks, notably:

- AnaCredit and securities statistics on non-ISIN under the ECB (p. 4).

- EBA FINREP, Large Exposures, Credit Risk Supervisory Benchmarking, Pillar 3 disclosures, and ESG reports (p. 4-5).

Application modalities: Institutions must apply NACE Rev. 2.1 for all reporting from January 1, 2026, without recalculating data according to the old classification, even if EBA template adjustments are ongoing (p. 3-6).

Technical details: For FINREP and other reports, allocations must be made at the most granular level possible (level 4), with specific mapping rules notably for codes J and K (p. 5-6). Template labels will be adjusted progressively, but data must be reported according to the new classification from the start (p. 5-10).

Role of national central banks: The JBRC encourages NCBs to adopt the same timeline for their national statistical collections using NACE, thus ensuring consistency at the European level (p. 3-4).

Analytical value and costs: Harmonization avoids complex recalculations, reduces costs for banks, and increases the quality and comparability of reported data, which is beneficial for supervision and economic analysis (p. 1-3).

Main Findings and Lessons Learned

Established facts: NACE Rev. 2.1 is officially adopted for European statistics from 2025 and must be applied in banking reporting from January 1, 2026 (p. 1, 3). The concerned reporting frameworks are clearly identified (AnaCredit, FINREP, Large Exposures, Pillar 3, ESG) (p. 4-5). Banks must apply the new classification without complex recalculations, even if regulatory templates are being adjusted (p. 3, 5).

Assumptions: The report assumes that banks and NCBs will be able to perform allocations at the required granular level (level 4) and that EBA template adjustments will follow the usual regulatory timeline (p. 5-10).

Interpretations: The JBRC interprets that harmonization is essential to reduce costs and improve data quality, and that the proposed timeline is realistic and beneficial (p. 1-3).

Uncertainties: Exact deadlines for the publication of adjusted templates in the Official Journal of the EU may lead to a transitional period where labels do not yet perfectly match reported data (p. 3, 5-10).

Conclusions and Recommendations

The JBRC recommends a harmonized implementation of NACE Rev. 2.1 across all European banking reporting frameworks from January 1, 2026, to minimize costs and ensure data consistency (p. 1-3). It also encourages national central banks to follow this timeline for their national statistical collections (p. 3-4). Institutions must apply the new classification from the indicated date without recalculating data according to the old version, even if regulatory template adjustments are ongoing (p. 3, 5-10). The report specifies technical application modalities, notably the allocation granularity level and specific mapping rules. This approach guarantees a smooth transition, better data comparability, and optimization of resources for banks and supervisory authorities.