The Regulatory Challenges
The Oxford Business Group recently issued a report that included a section entitled “Banking Reforms And Regulations To Take Centre Stage In 2014”
In an interview on Bloomberg Television’s “Bloomberg Surveillance,” IIF President and Chief Executive Officer Tim Adams discussed regulatory changes expected in 2014
http://www.iif.com/press/press+443.php
The Board of Directors of Central Bank of the UAE held its 8th meeting for the year 2013 in Abu Dhabi, under the chairmanship of Khalifa Mohammed Al Kindi, Chairman of the Board. The Board reviewed important projects currently being implemented o be completed during 2014. Development of these projects would enhance performance and ensure conformity with international standards and best practices Some of these projects:
First: In the area of banking supervision:
1- Implementation of the US Foreign Account Tax Compliance Act (FATCA) for individuals subject to US tax laws;
2- Some proposed regulations to be prepared, or to be reviewed during 2014 are in the area of supervision of banks and other financial institutions, such as: Outsourcing, Disaster Recovery, banks’ CEOs bonuses, Financial Statements Regulations and Regulations regarding Sharia Compliant Banking Transactions etc.
Second: In the area of Monetary Policy Instruments and Reserve Management:
Discount Window A Settlement system linked to securities custody Financial stability report.
This week the Central Bank of UAE issued regulations on licensing and monitoring of exchange business to regulate, enhance exchange business profession, support its geographical spread and facilitate the provision of exchange services throughout the UAE based on solid foundations. one clause states “That the licensed person shall provide, upon the Central Bank’s request, all data, information or statistics, at any time and for any specified period and such information shall be identical to the records of the licensed person and it shall be regarded and treated as confidential information.
From January 2015 new Basel 3 Liquidity ratios will apply and then in 2018 net stable funding ratios will come into effect. The Central Bank has deferred implementation of the announced ‘large exposure regulations” pending review with the banks.
Why do the regulatory changes matter?
New rules such as those included in; COREP, FINREP and CRD IV add to the challenge of collecting and submitting regulatory reports efficiently, accurately and on time.
Continually emerging regulations demand that banks do more to achieve compliance. This includes improving the quality of information collected and reported, and managing change as banks’ responsibilities evolve in line with developments in the regulatory framework.
Financial institutions must address:
• Increased complexity surrounding data consolidation requirements
• Pressures to introduce improved corporate governance practices
• Cleansing and auditing data for populating reports
• Reporting to the regulator within the stipulated timeframes
• Streamlining and implementing consistent calculation processes
• Managing large quantities of data
• Using data effectively for internal and external reporting
• Normalising data coming in from different data sources
• Variations in the substance and timing of regulations
Regulatory reporting solution
BRSANALYTICS for regulatory compliance takes multiple, disparate data sources into an integrated centralised data architecture. The unified web-based application, automates the process of collating statistical and supervisory reports.
Developed and supported by a team of professionals the solution embeds a unique combination of technical, legislative and financial expertise. The application offers a standard engine that has been refined over several years.
Our regulatory reporting solution seamlessly integrates with banks’ existing infrastructure to deliver a robust and straight forward to implement system. Developed with the ease-of-use mindset, BRSANALYTICS provides a clearly defined, and standardized data model that is fully scalable for regulatory compliance at either branch, or head office .
Regular checks, and updates in line with regulators’ developments computational formulas ensure a fully flexible and immediately responsive solution to new developments in the regulatory framework. This provides the ability to deliver accuracy, timeliness, quality and
efficiency in the submission of user- definable period reports that start from daily submissions.
BRSANALYTICS will free up your time at the end of the process to conduct report analysis so that any inconsistencies and errors in data gathered are identified and reconciled.
BENEFITS
Out-of-the-box country reporting packs
BRSANALYTICS provides out-of-the-box reporting
packs for specific jurisdictions. This means that once data is loaded into the system, business users can immediately generate the reports, in the specific format required by the regulator. This reduces the implementation: time, costs, and risks.
Data consistency and integrity
BRSANALYTICS ensures that data imported from
multiple data sources is consistent. To ensure a quick resolution.
the user is informed of any data anomalies with guidance on the location and type of data error. The business user can also customise the solution through additional validation rules that can be applied automatically during the upload process.
With standard pre-built interdependencies of the data source uploads, BRSANALYTICS provides business users with a logical path of source data to be uploaded. Furthermore the user is also prompted with any data subsets that may need to be recalculated following manual data nterventions to be incorporated into the data load such as adjustments.
Standard data model and centralized financial data warehouse
The standard data model covers a wide spectrum of the finance domain and banking business models. This ensures that once data is uploaded in the system, the data is automatically consolidated – irrespective of the back-end source systems. This reduces the implementation time by utilizing a proven, standard data model that is tried and tested in multiple banks. Moreover the solution is built on a robust data warehouse technology which permits the storage and consolidation of all the data, at different aggregation levels, centrally.
World-leading Business Intelligence platform
The solution is built on a sound Business Intelligence platform identified by Gartner as being the global leader in the field.
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Tried and tested implementation methodology
The robust and flexible underlying software solution is complemented by the BRSANALYTICS standardized Professional Implementation Methodology (SPIM), which was designed from experience in implementing regulatory reporting solutions over the years. This provides a detailed, structured, and repeatable implementation process, hence ensuring project success.
Single Version of Truth
The underlying mechanism of BRSANALYTICS – to consolidate data from multiple data sources also conducts checks and validations as part of this process, thus creating a Single Version of Truth (SVOT) reporting platform for both regulatory and internal financial reporting needs.
