In response to the global financial crisis, the
European Commission decided that it was time that high quality regulatory
reporting was implemented by scrutinizing the financial data of companies in
much more detail. European Commission has made it mandatory for the European
Banking Authority (EBA) to develop Implementing Technical Standards (ITS)
related to supervisory reporting requirements. In response to this mandate, the
EBA has developed Common Reporting
(COREP) and Financial Reporting (FINREP) as two frameworks that will
apply across Europe.
Introduction:
Common Reporting (COREP) is the standardised
reporting framework issued by the EBA for the Capital
Requirements Directive reporting. It covers credit risk, market risk, operational risk, own fund and capital adequacy
ratios. This reporting framework has been adopted by almost
30 European countries. Financial Services Authority (FSA) has mandated that all
regulated organizations in the UK use COREP to make their regular statutory
reports from 1 July 2013. COREP will apply to all firms who are regulated under
BIPRU, the FSAs prudential sourcebook for Banks, Building Societies and
Investment Firms.
Financial Reporting (FINREP) intends to step
up the harmonisation in supervisory reporting. It applies to all credit
institutions and investment firms (IFPRU Firms) across the EU that consolidate
their financial reports based on IFRS. The reporting covered under FINREP
includes:
1. Primary Statements (Balance Sheet and
Income Statement).
2. Primary Statements (Comprehensive Income
and Equity).
3. Disclosure of financial assets and
liabilities.
4. Financial asset disclosures and off-balance
sheet activities and non-financial instrument disclosures.
Objectives:
COREP
and FINREP, lies the main goal of empowering banks with greater capabilities to
aggregate risk data and high-quality internal risk reporting practices. The
main objectives can be summarized as:
1. To
aid the senior management in banking organisations in improved financial and
risk decision making, as well as strategic planning by enhancing the very
structure of regulatory reporting.
2. To
facilitate trend predictions and thereby macro and global assessment of risk by
creating a common basis for furnishing regulatory information.
3. To
make regulatory reporting faster and more standardised by establishing a
central repository for European banking data.
4. To
bring the European reporting requirements onto a single common platform and
eliminate the deviations caused by different supervisors in the EU.
Regulatory Reporting Function:
Organisations
use automation to deliver better quality reports, more quickly and more cost
effectively and contains all of the current FINREP/COREP reports mandated by
the European Banking Authority. The regulatory reporting solution delivers:
1. Native
management of the XBRL FINREP/COREP taxonomy required for FSA submission.
2.
Advanced top-down and bottom-up audit capabilities are available, to provide
counterparty or exposure level information.
3. Out
of the box validity checks to ensure consistency and accuracy of the data
reported and to comply with FSA requirements.
4. FINREP/COREP reports for different consolidation levels.
5. Extend the regulatory reporting solution to deliver a comprehensive enterprise regulatory reporting framework, encompassing capital adequacy and liquidity risk.
About Amlgo Labs : Amlgo Labs is an advanced data analytics and decision sciences company based out in Gurgaon and Bangalore, India. We help our clients in different areas of data solutions includes design/development of end to end solutions (Cloud, Big Data, UI/UX, Data Engineering, Advanced Analytics and Data Sciences) with a focus on improving businesses and providing insights to make intelligent data-driven decisions across verticals. We have another vertical of business that we call - Financial Regulatory Reporting for (MAS, APRA, HKMA, EBA, FED, RBI etc) all major regulators in the world and our team is specialized in commonly used regulatory tools across the globe (AxiomSL Controller View, OneSumX Development, Moody’s Risk, IBM Open Pages etc).We build innovative concepts and then solutions to give an extra edge to the business outcomes and help to visualize and execute effective decision strategies.
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