Bank regulatory reporting

Since the financial crisis, regulatory requirements in the banking sector have been steadily increasing. Since 2014 in particular, new regulatory management ratios such as the LCR, NSFR and leverage ratio have been introduced, in addition to adjusted procedures for determining RWA. These were flanked by a comprehensive European reporting system under COREP and FINREP. The ECB and national supervisors have also increased the requirements for a granular data collection due to an increased need for transparency. Today, a well-functioning reporting system is no longer just about fulfilling formal requirements, but is also an important driver for bank management.

Change in regulatory framework: The reporting requirements are becoming increasingly complex and are subject to constant innovation. The regular revision of the EBA’s data point model results in recurring adjustment cycles. In addition, the connections to Pillar III and the number of ad hoc requests from Pillar II are increasing.

Reorganisation of supervision: SSM, ERF and BIRD - supervision is moving away from form-based reporting towards detailed reporting where granular (individual) data is required. The requirements clearly reflect the intended direction of the supervisory authority to create comprehensive analysis possibilities on the basis of a consistent data collection.

Technical printing in the context of digitalisation: Future-ready reporting is increasingly driven by IT. Reporting must be integrated into the general digitisation strategy. At the same time, the data requirements and the demand for data quality are increasing due to constantly growing regulatory requirements with ever shorter deadlines and validations.

Business Intelligence (BI) in Reporting: By expanding the analytical capability of the reporting data, including a graphical representation of the analysis, informed control pulses are generated for users at the management level. The BI places new demands on the design of the reporting system.

Alignment of the organisational and operational structure: The field of reporting can no longer be clearly distinguished from other organisational units and disciplines. There are many units involved. Against this background, analysis as well as planning and control tasks are gaining in importance. In addition, expectations for cost optimisation and process efficiency have a strong impact on the reorganisation of the reporting system.

KPMG can provide you with competent partners for all issues relating to regulatory reporting. You can benefit from our expertise in regulatory reporting, supervisory law or accounting as well as from our know-how at the interfaces of auditing and consulting or of technical conception and IT implementation with the common software products. Specifically, we provide the following services:

• Implementation projects and audit: We have many years of project experience in the implementation of, for example, new COREP and FINREP requirements in reporting. In addition, we have sound and broad benchmark know-how from regulatory audits. This allows us to mediate between the technical and IT sectors, and we know the challenges in the banking sector.

• Software and tools selection processes: We accompany the selection processes for reporting standard software and tools on the basis of criteria catalogues that have been tested on the market. In addition, we offer a structured end-to-end view of cross-divisional reporting processes as well as workflow process automation.

• Networking in the market: We are in direct contact with the German and European supervisory authorities through KPMG’s ECB Office. We have a wide-ranging know-how of the suppliers and products available on the market.

• Interfaces: KPMG is a fast mover in the RegTech market and an interface between customers and technology companies. We organise and participate in discussions/forums with start-ups within the most important incubators in Germany.

• Outsourcing: KPMG takes over the reporting process, in particular for domestic branches and smaller banks, on a case-by-case basis, thus enabling its clients to leverage cost potential while maintaining high process quality.

• Brexit: We support various foreign banks in realigning or rebuilding the reporting system in their branches or subsidiaries to meet not only European but also national requirements.

• Technical and digital expertise: We offer extensive know-how on current regulatory requirements through daily trend scouting and our LexLinks information platform. We know the latest technological developments and are familiar with the expectations of standard software and reporting tools.