How to Simplify CRD IV Reporting
The new Capital Requirements legislative framework that applies to credit institutions (i.e. banks, building societies, investment firms) across the European Union (EU) consists of the Capital Requirements Directive (2013/36/EU) (CRD IV) and the Capital Requirements Regulation (575/2013) (CRR). The new framework seeks to put in place enhanced requirements for the quality and quantity of capital held, new liquidity and leverage requirements, and new macro prudential standards (Bank of England, 2017). It also introduces new standardised regulatory reporting obligations which take the form of Common Reporting Standard (COREP) reporting (i.e. reporting of risk on a monthly and quarterly basis) and Financial Reporting Standard (FINREP) reporting (i.e. annual financial information).
One of the main challenges that credit institutions now face, is how to source the correct data from multiple data repositories, how to accurately populate the COREP and FINREP templates, how to correctly map such data onto the national regulator’s XBRL taxonomy, and how to effectively validate the data prior to submission.
The COREP regulatory reporting framework covers a wide range of different areas such as: (1) asset encumbrance; (2) leverage; (3) Liquidity Coverage; (4) Net Stable Funding: (5) capital adequacy (five templates); (6) group solvency (one template); (7) credit and counterparty credit risk (nine templates); (8) operational risk (two templates); and (9) market risk.
The FINREP regulatory reporting framework covers: (1) forbearance; (2) non-performance; (3) primary statements; (4) disclosure of assets and liabilities; (5) financial asset disclosures and off-balance sheet activities; (6) income and equity; and (7) financial asset and non-financial asset disclosures and off-balance sheet activities.
It is clear that in order to simplify CRD IV reporting credit institutions need to be able to integrate multiple data points and workflows from disparate systems into a single data infrastructure that is transparent and easy to handle. That is why we have designed our ‘CRD IV Solution‘ to do just that. Our CRD IV Solution has been designed to integrate relevant data from multiple sources and consolidate it into a single viewpoint for regulatory reporting purposes.
The spreadsheet-like interface makes it very easy for credit institutions to navigate and control the CRD IV Solution whilst our automated conversion process streamlines COREP and FINREP reporting timetables. Our CRD IV Solution not only has an in-built validation engine, but it also features a highly secure, scalable, agile and future-proof operational model. This simplification of the CRD IV reporting process allows credit institutions to benefit from better efficiencies and significantly reduced total cost of ownership.
To make things even more simpler, our CRD IV Solution provides for three different methods of data entry: (1) simple manual entry; (2) automated mapping of data from source files directly to a relevant cell; and (3) direct import and export of templates using spreadsheets.
At DataTracks we make it our business to understand the new and highly complex CRD IV operational framework, and we strive to provide cost-effective reporting solutions for firms.
At DataTracks we make regulatory compliance simple.
For more information on our CRD IV reporting solutions and prices, please feel free to email us at: enquiry@datatracks.eu.