How to tackle recent regulatory guidelines on loans and credit risk regulatory reporting ?


Among the many regulatory initiatives and requests, the Loan Tapes (LT), Valuation Data Set (VDS), Loan Origination & Monitoring (LOM) and Environmental, Social & Governance (ESG) are the most important initiatives and are based on similar / equivalent data. It is therefore interesting to opt for a common approach.

More than 400 data are requested by these needs at Group level.

REGULATORY CONTEXT

Recent Credit Risks initiatives by European regulators/supervisors regarding bank’s processes to provide common data on a short time frame at a granular level.

Banks must prepare, collect, aggregate and submit the data on a timely basis at both Group and Local levels.

With the proliferation of regulatory reporting (AnaCredit, LT, VDS, LOM, ESG…), the challenge now is to exploit synergies while improving and monitoring data quality.

CHALLENGES

Banks should comply with new regulatory instructions by :

  • Identifying existing reports in which data is already present
  • Putting in place, and follow remediation plan on existing data
  • Adapting the architecture of information systems to prepare, collect, aggregate and submit new data
  • Ensuring the reliability of the systems and optimizing information-gathering processes
  • Coordinating the various central and local teams on matching of regulatory needs and the collection of data/information

The strengths of Aurexia

The Aurexia firm has already been involved in many regulatory projects within the major actors in the market, such as AnaCredit / IFRS 9 / Stress tests / LOM / etc.

Would you like a detailed presentation and insight of our experience ? Contact us