KPMG being at the forefront of continuous regulatory developments, via its ECB office, can help financial institutions comply with regulatory requirements and maintain appropriate capital buffers, as required under the EU Regulations based on Basel III and other regulations which are currently enforced.
In addition, KPMG's Financial Risk Management professionals can help financial institutions with the end-to-end process of regulatory report production, review, and submission, in line with regulatory and supervisory requirements.
An indicative and non-exhaustive list of areas that our risk regulatory and reporting services can efficiently help clients is the following:
- Regulatory capital calculation and management under Basel III and Basel 4 for all major risk types.
- Gap analysis and implementation of the European Bank Authority (EBA) frameworks and guidelines, such as Loan Origination and Monitoring, New Definition of Default etc.
- Gap analysis, review, and implementation of various Basel I/II/III components, e.g., the Liquidity Coverage ratio (LCR) and the Net Stable Funding Ratio (NSFR), introduced under Basel III, and which constitute the regulatory response towards the importance of liquidity risk management.
- Preparation for Basel 4 transformation, such as implementation of Fundamental Review of Trading Book (FRTB) and change in capital requirements’ structure and buffers for credit and operational risk.
- Preparation, review, and submission of EBA and Bank of Greece Stress Testing and EBA Climate Stress Testing for all applicable risk types.
- Guidance and support on ECB On-Site Inspections (OSIs) and targeted thematic reviews.
- Integration of ESG in risk management frameworks based on ECB guidance and requirements.
- Optimization of collateral allocation across different exposures.
- Development and review of recovery and resolution plans.
- Review and advise on sound, credible, and well diversified funding plans.
- Assessment of Interest Rate and Credit Spread risks and robustness of corresponding management frameworks.
- Preparation and review of regulatory reporting, such as ICAAP, ILAAP, COREP and Pillar 3 reporting.
- Preparation and review of ESG reporting, such as SFDR, PRBs, EU Taxonomy, CSRD.
