Regulatory reporting is becoming more challenging as more granular data is required to report.
Our system is not only robust but also scalable for adding any future requirements. It requires least amount of user intervention and prepares XBRL reports directly from the banking data, saving time and human resources. We also provide an Excel to XBRL tool with our complete solution.
INTRODUCTION TO CRD IV
From January 2014, European financial institutions will be required to deliver a huge amount of additional risk and capital data to their regulators. Common Reporting, or COREP, is the term used to describe the new standardised Europea
COREP has been mandated by the European Banking Authority, and will be adopted by the Financial Conduct Authority for the UK banking industry from 1 January 2014. FINREP is a standardized EU-wide framework for reporting financial (accounting) data. It comprises templates for reporting the income statement and the balance sheet, as well as breakdowns of other data.n reporting requirements for capital and risk.
CRD IV CHALLANGES FACED BY FINANCIAL INSTITUTIONS
Implementing COREP and FINREP under CRD IV is proving to be a major challenge for many organisations. Firms are faced with a looming Q1 2014 deadline and stringent requirements including increased data granularity and reporting frequency and the use of XBRL as the mandatory data format for reporting.
The original (discretionary) guidelines on COREP and FINREP were issued by the Committee of European Banking Supervisors (CEBS) in December 2005 and January 2006 respectively. The new set of rules, which are commonly referred to as the CRD IV Package, write into EU law the international Basel III guidelines for the level of financial reserves banks need to hold to absorb potential losses and are largely applicable from Q1 2014. Demands for large volumes of highly granular data and an increase in the overall number of reporting schedules to be submitted have substantially increased.
Firms face a number of complex challenges in meeting their reporting obligations under CRD IV:
- Data ownership between the internal Finance and Risk functions
- Data availability and governance, including audit and attestation
- Short implementation deadlines and reduced remittance periods, increasing the pressure on already-stretched development teams
- Introduction of XBRL (extensible Business Reporting Language) for regulatory submissions
IMPLEMENTATION OF REGULATORY SYSTEM
The implementation of regulatory reporting requires adequate knowledge of accounts mapping and
converting data to XML, XBRL, OSCA and BEERS. Our experience in implementing multi-dimensional solutions including regulatory reporting on T24, Misys and other core banking systems has provided us with the necessary knowledge base to accurately deliver and implement systems:
State of readiness
Determine whether processes and systems are streamlined enough to provide correct and timely capital adequacy figures for us to convert into new COREP format. This involves evaluating databases, integrations, and the organisation’s chart of accounts. Performing a brief evaluation and analysis would lead to an efficient road map toward implementation.
With an accurate road map and rapid system deployment, we can deliver a robust system to our clients in the shortest possible time as compared to other vendors.
Testing and review
The client should provide us access to the highly granular data which is complete and accurate. Our audit and reconciliation procedures will provide accuracy and completeness of reported items to ensure whether returns are in line with regulatory reporting requirements.
Training and support management
We will ensure that the regulatory reporting team have received sufficient training which helps to increase the level of quality and control over reported figures.
Unlike majority of the solutions in the market place that use a spread sheet based approach, where inputs are made into excel spread sheets and then converted into XBRL format for submission. Our system removes this step and seamlessly accesses the granular data from our data warehouse and transforms it directly in XBRL rather than populating Excel sheets manually and then converting into XBRL. This makes our system efficient and scalable for any future changes in regulatory reporting. But we do provide an Excel to XBRL tool to start the process while we setup the complete solution.
Our solution is much more robust and streamlined. We use our data warehouse to host the chart of accounts and all the required granular data from the banking database. It consists of a mapping module that allows users to map accounts automatically. Our solution extracts the data from the banking system on a regular basis and transposes it automatically into our data warehouse adding more granular data as required for generating CoRep / FinRep / BOE reports.
The summary breakdown is as follows
- Part 1: Capital adequacy
- Part 2: Group Solvency
- Part 3: Credit and Counterparty Credit risk
- Part 4: Operational risk
- Part 5: Market risk
- Part 6: Large Exposures
- Part 1: Primary Statements
- Part 2: Disclosure of financial assets and liabilities
- Part 3: Financial asset disclosures and off balance sheet activities
- Part 4: Primary Statements (Comprehensive Income & Equity)
- Part 5: Financial asset disclosures and off balance sheet activities and non-financial instrument disclosures
- BT, ELS, PL, etc.
Static and other data
- Information that is not available in the underlying banking systems will be added into the systems via user interfaces provided in the system
- FSA001 Balance sheet (Replaced by FINREP)
- FSA002 Income statement (Replaced by FINREP)
- FSA003 Capital adequacy (Replaced by COREP)
- FSA004 Credit risk (Replaced by COREP)
- FSA005 Market risk (Replaced by COREP)
- FSA006 Market risk – supplementary data (Replaced by COREP)
- FSA007 Operational risk (Replaced by COREP)
- FSA008 Large exposures (Replaced by COREP)
- FSA015 Sectoral information
- FSA016 Solo consolidated data
- FSA017 Interest rate gap report
- FSA018 UK integrated group – large exposures
- FSA045 IRB portfolio risk (Replaced by COREP)
- FSA046 Securitisation (Replaced by COREP)
- FSA047 Daily flows
- FSA048 Enhanced mismatch report
- FSA050 Liquidity buffer qualifying securities
- FSA051 Funding concentration
- FSA052 Pricing data
- FSA053 Retail, SME and large enterprises Type B
- FSA054 Currency analysis
- FSA058 Securitisation
- MLAR Mortgage Lenders and Administrators Return
Asset Mail is a server based system with an independent data ware-house seamlessly integrated with MS Exchange or any other email server which supports POP3 or MAPI to download messages.
The system provides effective management of:
CUSTOMER RISK MANAGEMENT
The system contains a preapproved and user managed risk assessment criterion where risk scores are applied to each customer account and overall rating is determined.
The system also analyses transactional data (by type) for each customer in the scoring report, and the summary is displayed graphically showing monthly values and their movement beyond a specified threshold.
Asset+ Integrates hedge funds, wealth management, fund of funds, and asset management into a single platform.
A multi-fund structure supports clients, classes, series, required instruments and transaction types.
Other services include portfolio management, performance, risk reporting, marketing, P&L, liquidity with cash projections and maturities, price maintenance and revaluation, IFA and Investor portfolios, double entry accounting.
Bank+ is a comprehensive solution with an independent data warehouse, which seamlessly integrates with Temenos T24, Misys Equation, and other core banking systems offering a wide ranging suite of risk and compliance solutions including FCA Reporting
- Management Reporting
- Cost and Yield
- Asset and Liability Maturity
- Capital Adequacy
- Email Alerts
- Liquidity Management
- FCA Reporting
- Credit Reporting
- Exposure Reporting
- COREP, FINREP, CMAR
Liquidity Pro monitors and manages the liquidity risks of financial institutions as required by the FCA under the “Strengthening Liquidity Standards”.
The system generates the ILR and submits to FCA automatically. It projects future cash flows, and asses the survivability of the institution under FCA ILAA.
Liquidity Pro seamlessly integrates a user defined mapping system with any core banking system currently working live with Temenos T24.