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Regulatory Reporting - OSIS

OSIS offers regulatory reporting services to help banks, Fintech companies, asset managers, pension funds, and insurance companies comply with regulations and reporting requirements. Our solutions include automated reporting tools, expert guidance on regulatory compliance, and training to help you develop the skills needed to navigate complex reporting requirements.

Regulatory Reporting

In the financial sector – partly prompted by the financial crisis – we see an increasing amount of standardised reporting required by supervisors in the financial sector. The banking sector is leading these changes with important contributions being made by the EBA, ECB and ESMA within the EU, and by the FED, in particular, in the United States.

One of the most active financial reporting regulators is the European Banking Authority. The EBA became operational on January 1, 2011 and is responsible for the implementation of all reporting obligations for banks in the EU that fall under what is known as the Capital Requirements Directive and the Capital Requirements Regulations. In addition, there is a second layer called the Binding Technical Standards, which describes in more detail what criteria reports must meet. To this end, the EBA works closely with national supervisors. The third layer of documentation produced by the EBA is the Guidelines. Unlike the first two layers, the Guidelines are not binding, but they are very relevant because they  are based on the “comply or explain” principle.

Some of the reports are intended for supervisors only and others are publicly available. The reports for supervisors are generally more detailed. The reports relate to all possible risks that financial institutions run from credit risk, market risk, operational risk, liquidity crisis and interest rate risk. Most reports provide aggregated information and some reports, such as Anacredit (for regulators only) enforced by the ECB and securitization data (publicly available) enforced by ESMA, request information at the lowest level of an individual loan. The latter form is particularly interesting because data quality is easy to control and can serve as a basis for the aggregated reports.

Our philosophy is that our client aims to develop a data set based on a loan-level data model with which 80% of all reports can be filled in automatically. Our starting point is (1) to provide insight into how the different reporting requirements relate to each other. Then we (2) bring the data from the different source systems together, (3) map it to the data model, all of which is (4) backed by an audit trail. With this data set at loan level, all possible data quality checks can be performed to guarantee the integrity of the data. We aim to develop a data set that is not only suitable for reporting, but also for future model validations and model recalibrations.