Capital Requirements Directive IV (CRD IV) Financial Reporting (FINREP)

Automates EBA-mandated financial reporting on a single platform accommodating internal entity structures and leveraging data sets for NCB reporting

Overview


Device Frame
Complex Requirements

As part of the Capital Requirements Directive IV (CRD IV), the European Banking Authority (EBA) has introduced a harmonized European reporting framework for prudential information (COREP) and financial information (FINREP). FINREP is based on international financial reporting standards (IAS/IFRS) in the EU.

Required Data

Financial institutions (FIs) face a significant challenge to source the required data, much of which has not previously been needed for external reporting. They must ensure BCBS 239 driven high data-quality standards and satisfy the many EBA-mandated validation and reconciliation rules.

Jurisdictional And Entity Structure

Each FINREP implementation for an entity operating in the EU is uniquely nuanced with respect to each National Central Bank (NCB) within the EU. This creates increased operational risk for FIs that must report in the EU against FINREP requirements, but also adhere to each nation’s central bank reporting requirements.

Questions to Consider

  • Are we able to quickly adapt to the latest versions of the reporting requirements that the EBA publishes at regular intervals, while retaining access to earlier iterations?
  • How do we ensure that we do not duplicate our efforts for NCB reporting while meeting EBA requirements?

  • Do we have well designed processes to ensure high data quality standards and to satisfy the many EBA-mandated validation and reconciliation rules?
  • Can we manage our multijurisdictional reporting requirements efficiently across our entity structure?

Solution

Single Platform

AxiomSL enables firms to satisfy their EBA-mandated Financial Reporting (FINREP) requirements on ControllerView ― a single platform that accommodates multiple internal entity structures and jurisdictions. The solution also enables NCB reporting leveraging data sets already being processed for EBA reporting.

Implement once, replicate across reports and jurisdictions.

The FINREP solution is powered by:

  • AxiomSL’s FinView extendable Data Dictionary for financial and statistical reporting that is designed to map against data emanating from Core Banking, General Ledger, and Data Warehouse applications

  • Robust, transparent data quality metric reporting and reconciliation engine

Capabilities

  • Built-in reporting logic assigns appropriate data sets for both ECB and NCB reporting
  • Maintains NCB reporting templates for EU jurisdictions
  • Numerous reconciliations, including:
    • General ledger data and the data in source systems
    • COREP, FINREP, and other regulatory returns

  • Robust adjustment process enables users to review their reports, drill down to the source data, and make topside adjustments, if required
  • AxiomSL provides updates within a month of EBA publication of new taxonomy versions
  • Once signed off, reports are submitted directly to the regulator

Device Frame

AxiomSL’s FINREP Ecosystem Powered by the FinView Data Dictionary

Use a single platform that accommodates multiple internal entity structures and jurisdictions to satisfy FINREP requirements

AxiomSL’s CRD IV Finrep

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Benefits

Reduces TCO of ECB and EU NCB compliance with automated, transparent reporting that accommodates jurisdictional and entity structure nuances

Native XBRL functionality enables direct submission of reports to regulator for timely and transparent compliance

Regulatory update releases are separate from software releases ensuring continual compliance

Banking entities operating in EU jurisdictions can satisfy FINREP and NCB reporting requirements in the most efficient manner

Reconciliations with COREP and other regulatory returns ensure confidence in submissions and efficient audit response

Automatically archives earlier taxonomy versions for comprehensive auditability

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