AxiomSL, a global provider of regulatory reporting and risk management solutions, has confirmed its award-winning regulatory reporting platform includes all of the functionality financial firms will need to comply with the Analytical Credit Dataset (AnaCredit) regulation, which is set to have a major impact on a large number of institutions in the eurozone and in other European Union (EU) countries.
AnaCredit is a plan by the European Central Bank (ECB) to create a central register of granular data about the credit granted by financial institutions in the eurozone. The draft regulation is currently being prepared. However, discussion papers and impact analysis work have indicated that AnaCredit will create a number of challenges for financial firms in the eurozone – and in other EU countries that choose to implement the regulation.
As part of AnaCredit, firms will be required to report more than 100 data attributes, many of which are spread across multiple systems and have never been needed for external reporting before. The threshold for reportable credit exposures is expected to be low (the ECB is considering a threshold of €25,000 at borrower level). This means a large number of institutions will be impacted when reporting begins in 2017, and the volume of reports they will need to submit will be high.
AxiomSL’s platform is specifically designed to automate compliance with regulatory reporting requirements such as AnaCredit. The platform aggregates data from multiple systems. The data is enriched and validated before being used to populate the required reports, which are then submitted to the regulator.
AxiomSL’s platform offers unrivalled usability and transparency. This includes the ability to segment control reports based on user-defined criteria, such as geography, product type and entity. This will make it easy for financial firms to ensure their AnaCredit reports are quickly signed off by the relevant internal teams.
When reviewing their control reports, users can drill down from the values in their reports to the source data and make manual adjustments if necessary. The platform also supports reconciliations between AnaCredit and other regulatory reports to ensure consistency between submissions made to different authorities.
“We are seeing a great deal of interest in AnaCredit. The new regulation is going to impact a large number of institutions, requiring detailed reporting on credit exposures that have not previously been subject to this type of regulatory scrutiny,” said Ed Royan, Chief Operating Officer EMEA, AxiomSL. “In order to manage the large number of reports that will be required, firms will need a transparent, scalable platform. AxiomSL’s strength in this regard has been demonstrated time and again through the successful use of our platform for a wide variety of reporting requirements – ranging from Basel III/the Capital Requirements Directive IV (CRD IV) and the Foreign Account Tax Compliance Act (FATCA) to the Firm Data Submission Framework (FDSF) and central bank reporting in multiple jurisdictions. Our policy and development experts are closely monitoring AnaCredit and are ready to fine-tune our solution once the final regulation is published. We are looking forward to working with many existing and new clients on their AnaCredit projects over the coming months.