EBA and EIOPA publish new
DPM Standard 2.0
The Data Point Model (DPM), as it is known in its current version, was already designed by the EBA and EIOPA in 2012 and further developed independently of each other. However, little has changed in the basic structure during this time. Initiated jointly by EBA and EIOPA in 2019, the DPM Refit project is a joint response to the challenge of increasing volume, granularity and complexity of data.
The following objectives are pursued by the “DPM Refit” project:
Creation of a unified metamodel that is independent of the purpose, characteristics, or scope of the data (e.g., supervisory, statistical, transactional, reference, and master data),
Support of various data exchange standards in particular XBRL and SDMX*,
Enable consistent modeling of EBA and EIOPA reporting requirements for the development of data dictionaries and regulatory products,
Support the entire reporting lifecycle, from data definition and metadata management to data collection, investigation, derivation, and dissemination,
Enabling consistent modeling of other sets of rules.
*XBRL and SDMX are two data exchange standards used and developed by European supervision. They each offer individual advantages and disadvantages and are therefore used for different reporting purposes (XBRL primarily for COREP and FINREP, SDMX for AnaCredit, SHS, WIFSta). XBRL has become the ISO standard for the creation of messages worldwide and makes it easy to build a data model with a validation function. SDMX, on the other hand, is a standard developed by international institutions with a focus on enabling data exchange between these institutions. The two standards, XBRL and SDMX, differ primarily in the following dimensions: Facility identification, time period or frequency, use of dimensions, metrics vs. measurement dimensions, graphical representation, validation rules, and the use of attributes.
The new DPM Standard 2.0 was published on 16.06.2023:
On 16.06.2023 the new DPM Standard 2.0 was published with the information on the separate implementation plan for EIOPA and EBA as well as on the common metamodel, further specifications and valid operators in the rules.
For banks, the new standard for DPM releases will be delivered from Q1/2024 in parallel with the standard still currently in force. From Q4/2025 onwards, only DPM releases according to the new standard 2.0 are to be delivered.
The post-revision DPM metamodel consists of four main components, each serving a specific purpose:
- A glossary of terms divided into categories of properties and elements.
- Representation of information requirements in tables. These are the actual report contents.
- The identification and description (using glossary terms) of each part of the information requirements.
- The definition of data operations, i.e. data quality checks (validations) and data transformation/derivation rules. Operations consist of operators (e.g. =, +, -) and operands that can refer to glossary terms, representation structures, or variables.
Overall, it appears that the revision of the Data Point Model is a first step towards avoiding redundant data collection across industries. At the same time, data formats will be standardized and easier processing by supervisory authorities is intended. It remains to be seen what implications this will have for banks and insurance companies. A technical step towards processing more granular data, as already envisaged by banking supervisors through IReF and BIRD, seems to have been taken with the new DPM standard.
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