BANKING
COREP / FINREP: Report Standardization
Keywords
reporting
SAS
The Challenge
The European Parliament and the Council of the European Union have approved a single set of prudential requirements for credit institutions and investment firms, commonly referred to as the “Capital Requirements Regulation”.
Having a single regulation for all market participants prevents market distortions and regulatory arbitrage. It is intended to implement uniform definitions and reporting requirements, which will be transposed through the Common Reporting (COREP) and Financial Reporting (FINREP) guidelines. The Capital Requirements Regulation orders the European Banking Authority (EBA) to propose Implementing Technical Standards (ITS) regarding supervisory reporting requirements. The ITS apply to credit institutions and investment firms, both individually and on a consolidated basis. They define reporting requirements on own funds, financial information, losses on real estate secured loans, large exposures, leverage and loan ratios. In order to have DPM compliant information it was necessary to create a process whose aim would be to standardize the source data as well as a way of managing the different taxonomy versions that EBA provides.
The Solution
Mind Source was responsible for maintaining the COREP process with the taxonomy 2.2 already installed by SAS in the Bank and, according to the existing one, it was also necessary to enable users to access the reporting information validations with the EBA rules.
Furthermore, it was necessary to develop new forms of calculations for metrics that would be reported incorrectly, as well as an automatism and greater efficiency in the xbrl file generation process. In addition to these components, there was a need to ensure automatic reporting of FINREP Consolidated and the start of submission of FINREP Individual information. At the same time the whole process was updated and prepared for the new taxonomies upon the demand of Banco de Portugal (BdP).
Results
The success of the project accomplished the following
Regarding EBA validations, users were able to perform without intervention of the technical team. Following this process, all incorrect and previously analyzed metrics were corrected, as well as, changes for faster and more efficient generation of xbrl files. All this work allowed COREP's report to be sent to BdP successfully, meeting the deadlines. Regarding the inclusion of FINREP in the report, the loading process of the new information was guaranteed and the execution of the periods, requested by BdP, had the same success rate as the COREP report. Despite all the parallel work of executions, reports and date changes due to constant taxonomy changes, the project-wide migrations to the new required taxonomies have been performed. The test of this evolution was the report of all COREP / FINREP modules with this new version, where they were accepted by BdP.
Technologies used in this project
