Regulatory Reporting

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Portrait of the Service Unit

Regulatory Reporting provides services on banking supervisory issues according to German as well as applicable European law (based on international requirements such as CRD/CRR, EBA ITS/RTS). The unit covers Capital and Solvency (e.g. COREP) as well as Large Exposure, Liquidity, bank statistical and other regulatory reporting requirements.

The available systems and the expertise of our employees enable Regulatory Reporting to cover not just standardized bank products but more sophisticated products as well.

The foreseeable revision of the rules for securitizations (BCBS 303), for the trading book (BCBS 305) and for the operational risk (BCBS 291) as well as the new standardized approach for credit risk and counterparty risk represent only part of the future challenges in regulatory reporting. The new regulations for the leverage ratio, the analytical credit data set, the LCR as well as for the SREP add to the agenda of supervisory regulations that will be subject to revision. With the banking supervisory authorities focusing more and more on business models and sustainable sources of income, internal control systems, governance and data quality are gaining in importance.

Integrated data sources (Golden Source) and clear data structures will be increasingly important. There is an urgent need for action regarding the reduction of manual processes. Enhanced structures will lead to time savings and improve the data quality.They will enable banks to meet the ever increasing reporting requirements and simplify the growing number of analytical and quality assurance tasks. A clear structure of the IT environment will facilitate the adjustment of interfaces and the implementation of releases and updates of the standard reporting software going forward.

This is our area of expertise!
 

Products and Services

We operate on the basis of a common data pool to which front and back office systems are linked in a standardized way. This data pool is the “Golden Source” for all reports. In many cases it already contains the additional information which is relevant to fulfill new reporting requirements. Detailed (IT) conceptioning is part of our day to day tasks.

 

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For the outsourcing of regulatory reporting responsibilities different technical options are available:

  • Using a generic interface to a central standard regulatory reporting system (e.g. ABACUS/DaVinci).
      
  • In addition, the EFS data warehouse can be used as an interface to that central standard regulatory reporting system.
       
  • Operating (in a first step) the customer’s standard reporting system.
        

The customer can choose between the partial or complete outsourcing of reporting duties.

Your Benefits

Regulatory Reporting represents an attractive area for services that are already market-tested

In recent years regulatory reporting requirements were subject to a huge number of dramatic changes. This made many financial institutions contemplate whether

  • an increasing number of changes, within short intervals and with reduced lead time can and should be managed on a stand-alone basis
     
  • increasing detailed data requests can be met with manual solutions
    (spreadsheet reporting)
     
  • the validation within the individual reports and across different regulatory reports as well as comparisons with accounting and risk management can be made using the existing infrastructure.
     
     

Your advantage will be:

  • that your regulatory reporting will be done by experienced staff.
     
  • a quality enhancement in your regulatory reporting due to reconciliations across different regulatory reports.
     
  • the reduction of operational risks resulting  from process optimization.
     
  • the facilitation of the further development and maintenance of your reporting software.
     
  • more time to focus on your key competencies.
      
     

You

  • sign-off on reconciled reports.
     
  • decide on proposals on reporting options in the case of changes in the regulatory law.
     
  • take the final vote on the basis of our analytical decision papers.
     
      

We

  • produce and reconcile your reports.
     
  • send your reports to the supervisory authorities after your sign-off.
     
  • answer the authorities‘ questions on your behalf and in accordance with your instructions.
     
  • perform the necessary tests in case of software changes.