Growing data collection requirements for European Central Bank (ECB) increase the necessity for complex regulatory reporting and complex data. Banks spend 15–20% of the total “run the bank” costs each year for regulatory Governance, risk and compliance topics.
These are main regulations with impact to reporting in recent and upcoming years:
Banks needs to focus for finding the most effective approach for ECB/National bank reporting.
Each bank needs to focus primarily on the following aspects:
- Reporting complexity and number of mandatory reports in growing
- Necessity to build the knowledge about each area and maintain it within the organization
- Different data granularity – banks needs to build reports in different level of detail
- One true – all reports must provide the same data (reconciliation between reports and General Ledger
Our solution covers following regulatory reporting areas:
- Basel II, Basel III
- FINREP – reporting for ČNB/NBS
Analytical Credit Dataset (in short AnaCredit) is a regulatory initiative, which aims to collect harmonized data on loans and credit risk within the EU and to provide the data necessary for performing the Eurosystem‘s role – monetary policy analyses and measures, risk monitoring and management in the area of financial stability and supervision of credit risks.
For regulated banks, but also non-regulated credit institutions, AnaCredit will provide the ability to supply the requested data in detail to the country’s National Bank.
What we can help with:
- Analysis of availability and quality of data necessary for AnaCredit in the IT bank environment
- Solution design for AnaCredit into the current IT architecture
- Implementation of solutions to the bank environment (in case of using the NESS BI Factory tool with ready-made data model there are significant savings of time and cost of the project)
- The use of data/business dictionary in the institution. All the new ECB regulations aim for the banks to standardize their systems and ensure coherent information in them
Regulatory Reporting architecture
NESS regulatory reporting architecture is built on pre-defined physical data models for each reporting business area. Most of reports are based on the same bank’s contractual data (party, accounts, transactions,) and there is no necessity to build each solution again and again. Necessary reusability is based on the Smart cubes concept where facts and dimensions data are used everywhere when it is convenient.
The solution can be built as a part of existing bank’s architecture or as a part of private cloud solution (one infrastructure for more banks, data in secured physical clusters, strong encrypting).
AnaCredit solution architecture
Advantages of Regulatory Reporting
- Efficient data collection eliminating redundancies
- Cost savings for both banks and national regulator on data management and transformations
- Savings on regulatory fines for banks (continuous compliance monitoring)
- Guaranteed compliance with new regulation and data structure requirements
- Consistent consolidation and interpretation of different statistics
- Improved data quality – a common framework eliminates the need to cross-check individual reports published by one and the same reporting institution
- Improved analytical value as it enables data users to drill down within the respective secondary statistics
- Integrated and harmonized data production reduces the need for burdensome ex-post reconciliation and comparisons
Advantages of AnaCredit
- A ready-made solution that can significantly reduce the implementation cost of this project
- Consolidated external reporting & Basel II at Raiffeisenbank a.s.
- Continuous production of reports (IBM Cognos) at Komerční banka, a.s.
- Creating reporting for savings bank Poštovní spořitelna designing a complete reporting system for distribution network
Other selected related references
- Cognos best practisies training for UniCredit Bank
- The introduction of sales and marketing reporting (Oracle Discoverer) at Raiffeisenbank a.s. (former eBanka, a.s.)