Skip to main content

Financial Regulatory Reporting

This blog is an introduction to the Regulatory Reporting. Regulatory reporting is mandatory activity banks have to perform with the coordination of Treasury, Group Finance, IT, and business lines. Regulators across the globe depend on accurate and timely submission of various Risk and non-risk reports by banks to measure the overall health of the banking sector.

Regulatory reporting in the banking sector is reporting its business numbers to local regulators like RBI for India, FED for the US. This includes the Balance Sheet, Profit & Loss statement, also Capital adequacy, Liquidity Coverage numbers.

Banks generate and collect data from various business lines. Collecting information from disparate sources is not only cumbersome but also, at times, inefficient; the difference in reporting formats governed by multiple regulators adds to the troubles. Data inaccuracy, the dearth of skilled resources, need for constant reconciliation to recheck the accuracy of the content are some of the other challenges. Regulatory reporting needs to address the problem of legacy mainframes, lack of granular data, intricate data mapping.

The regulatory reporting end to end process is not a straight forward task. It has its own complex dynamics. The process followed by various banks does differ to some extent but the crust of reporting remains the same. Let us discuss the abstract view of current regulatory reporting all the way from data sourcing to submission to external or internal supervisors.

The subprime crisis of 2007, when Lehman's Brothers failed, Regulators thought of more stringent rules to apply for financial institutions. The Basel committee came up with the recommendations of Basel rules which as of now implemented as Basel III. There are strict guidelines for Capital requirements and Liquidity Profiles to be reported with a certain frequency and non-compliance to it has its own repercussions. 

It's been quite an improvement with what Globally Important and Systemic Banks are reporting but Regulators across the globe are expecting more than just sending business numbers before deadlines. They want automation and improved process with minimal adjustments by human interventions. They want Banks to devote their 80% time on analysis of data and 20% time on production. Regulators are satisfied with the numbers that Banks are reporting but they also want to see how those numbers are derived.

Let us see what existing abstract structure does Banks have:

Fig 1:Regulatory Reporting Data Flow


The above flow diagram shows how data flows from upstream to downstream reporting. Disparate data coming from trade desks, consumer transactions, loan contracts, etc. are extracted using batch processes on a daily basis and it needs to be transformed so as to make data meaningful and sometimes need to fill the blank spaces kept by traders :).Overnight data gets batch processed and it further dumped in a data warehouse that works as a single point of source for downstream reporting. This data can be further spitted in different Subject Areas called Data marts.

Finally, this data gets picked up by BI tools which can be used for Trend Analysis, Day on Day Delta exposure against different dimensions. The same data can be used for regulatory filings by populating numbers in the template as per Business Rules using AxiomSL® ControllerView®, OneSumX®, or any in house strategic tool Bank has created.

Today Global Banks have to be flexible with ever-changing regulatory requirements. The regulators are looking for more than just reporting templates but automating and streamlining the entire process till the last mile of reporting. There is still a larger gap when it comes to BCBS 239 recommendations implementation regarding data lineage and manual intervention and reporting in silos where reconciliation becomes a tedious job. 

There is a long way to go for financial institutions in the Regulatory Reporting area from data sourcing till Report generation. The Regulators have come up with solutions in the recent past of creating reusable business concepts that can have certain dimensions and measures. It can be used in different permutation and combination to create view required for analysis and reporting which is called hypercubes. This structure is quite flexible when it comes to any regulatory change which can be seen in template-based reports where we need revamp each time there is a regulatory change required. Please refer Stages of Regulatory Reporting blog to know more about the various stages of regulatory reporting.

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 (MASAPRAHKMAEBAFEDRBI etc) all major regulators in the world and our team is specialized in commonly used regulatory tools across the globe (AxiomSL Controller ViewOneSumX DevelopmentMoody’s RiskIBM 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. We are among top 10 Data Analytics Start-ups in India, 2019 and 2020.

Please feel free to comment or share your views and thoughts. You can always reach out to us by sending an email at or filling a contact form at the end of the page.


  1. Great job for publishing such a nice article. Your article isn’t only useful but it is additionally really informative. Thank you because you have been willing to share information with us. Vietnam Export Data

  2. Thank you for sharing such a useful article. I had a great time. This article was fantastic to read. Continue to publish more articles on

    Data Engineering Solutions 

    Data Analytics Service Provider

    Data Modernization Services

    Machine Learning Services


Post a Comment

More Popular Posts

Amlgo Blog - Experience The Experiments

Amlgo Labs Blog  is a step towards our vision to share knowledge and experiences, Amlgoites accept every challenge very enthusiastically. We do experiments, we fail but we learn and build complex solutions to help our clients solve their problems in Data, Analytics, Prediction, Forecasting, Reporting, Designing and Development area. During this process we enjoy immense learning everyday and we have decided to share our thoughts, learnings, experiments and experiences so that we don't work in silos and contribute the best of our knowledge towards community and learn more by views and reviews. This website is maintained and brough to you by  Amlgo Labs Professionals .   Our Strong Basics -  1)   KISS (Keep It Simple and Straightforward) :  We believe most of the problems can be solved by keeping things simple and straight. This is the learning we had in past, sometimes we try to solve technical problems using high end algorithms and complex codes but this results into complications.

Power BI Blog - What is Power BI and Why we use Power BI.

This Power BI blog is an introduction to the Power BI. In this Power BI tutorial, you will learn Power BI basics - what is Power BI, Power BI Desktop and Power BI Service. Power BI tool is a combination of Business Intelligence and Visualization. Before we dig deep let’s understand what is Business Intelligence. Business Intelligence is a broad spectrum which consists of using different business strategies and techniques to gather data, refine it and process it for the purpose of data analysis which gives us some meaningful information which helps in data driven decision making. When we present this information in the form of some charts, graphs it takes the form of Visualization.

Power BI Card Visual With Conditional Formatting

In this blog we will take you through the Power BI Card Visual and a workaround to present card with conditional formatting. To know more about what is Power BI please do check Power BI Blog . The conditional formatting, we do will not be on the Card Visual, but the output will certainly look like Card, which is a requirement in some cases. Many Power BI users have used Card Visual to represent some value on the Power BI Reports separately or on above of any other visual, but sometimes clients ask which is deemed difficult to achieve, but not impossible. So, let’s dive into the practical to know more about it.

A simplified view of a QlikView tool:

In our last blog related to Qlikview, we discussed the use of Qlikview for Financial Data Analytics . Qlikview is a Business Intelligence tool that consists of a front end to visualize the processed data and a back end to provide the security and publication of the mechanism for QlikView user documents.

Polybase Installation for Scale-Out process

This part is the continuation of the previous blog about the introduction of  Polybase Scale-Out Group . As we have discussed in our earlier blog PolyBase enables your SQL Server instance to process Transact-SQL queries that read data from external data sources. SQL Server 2016 and higher can access external data in Hadoop and Azure Blob Storage. Starting in SQL Server 2019, PolyBase can be used to access external data in SQL Server, Oracle, Teradata, and MongoDB.

JavaScript: The Important Basics

In this weird world of technology people often get confused how does a website work? What all things should I be aware of? So we are here to help you. Most of the content on web is developed with the help of JavaScript. JavaScript is really becoming popular these days with the coming of ECMAScript2015 and ECMAScript 2016, for this reason, some beginners learning React and Angular and are also trying to tackle more modern JavaScript syntax at the same time. If you're new to both, it can be confusing as to "what is JavaScript and what are its important features". This document should serve as a primer to help you get up-to-speed on JavaScript syntax that we feel matters the most for learning React as well as Angular.

How to Connect Windows with Ansible?

Hello Techies, this blog is the continuation of the last blog Install Ansible on Windows which is the second part of the series Ansible with Windows . Before you proceed, I recommend you to please take a look at the introductory blog of this series so to have an understanding of this series.