Bearing Point Institute: a real-time reporting process
is it possible?
This video tutorial shows the sixth report of the Bearing Point Institute, an international consulting firm top flight. This special issue is dedicated to international financial services, in particular to the difficulties engendered by the proliferation of regulations in Europe, following the 2008 crisis, on the regulatory reporting to which are subjected financial institutions.
A much more practical and modern solution of reporting is envisaged providing that the financial sector be ready for the radical transformation that would allow to set it up…
The financial crisis in 2008 exposed huge data gaps in the global financial network.
Only with high-quality, comparable and timely data, can regulators assess
risks and restore confidence in the financial system in a harmonized
and standardized way.
But, greater reporting demands on the industry could end up being
a big problem as compliance costs hurt day-to-day business.
Today all EU banks are required to report up to 700,000 data points quarterly
in different templates. This is just for prudential reporting.
Combined with statistical reporting – it is much more.
This is not only time-consuming and costly for the sector,
but it still leaves systemic risk exposed.
A new information value chain is needed for reporting
to work properly in the 21st century. Template based
reporting is hampering data quality and effective regulatory reporting.
This means greater integration and automation of regulatory reporting.
In Austria, the central bank, together with the country’s
banks, have worked to develop a new reporting model.
Each regulated entity enters its data in a standard
data cube defined by the central bank, based on
Bearing Point’s ABACUS platform
These are aggregated in a series of smart cubes
defined by business type and regulatory requirements.
A shared service company called AuRep runs the
regulatory reporting platform and leverages the industry
standard between the regulator and the industry.
It is early days but could point the way to the future of regulatory reporting.
Find out more in our Bearing Point Institute paper