The EBA has continually refined its implementing technical standards (ITS) on supervisory reporting for FinRep. The objective of the ITS is to contribute to the stability of the financial markets, through the obligation to report financial information resulting from Article 99 of the CRR, which calls for the harmonization of regulatory requirements across Europe as well as the provision of a detailed overview of institution-specific risk profiles. Over the past two years, reporting requirements have expanded from the consolidated level of “significant supervised groups” to include individual “significant supervised entities and subsidiaries”, driven by the ECB’s Regulation (EU) 2015/534. This extension of reporting (“FinRep Solo”) will be completed when “less-significant” banking operations are subject to FinRep reporting, starting from 30 June 2017.
The ECB’s recently planned amendments to supervisory financial information reporting are a reaction to evolving international accounting principles, i.e., the introduction of the concept of expected losses with IFRS 9.
One challenge of FinRep is the ever-growing data volume. The other challenge is to maintain data quality with respect to data consistency and availability. These regulations require effective processes and system landscapes as well as the integration of reporting and accounting.
BearingPoint offers with ABACUS/DaVinci a reporting software that covers all financial reporting requirements of the EBA and ECB.