CRD IV – Automation of COREP and FINREP Reports

Rapid Implementation of COREP & FINREP

Most European firms are well on their way to implement the new common regulatory reporting (COREP) obligations and close to having to start financial reporting (FINREP). Back in 2006, the Committee of Banking Supervision (CEBS) entrenched a common reporting framework guideline intending to increase the comparability of financial information reported within the European Union. The objective was not solely stringent to increase comparability. But it was also to reduce the reporting burden on cross-border credit institutions and remove potential obstacles that pose a threat to financial market integration.

In this context, the firms were required to overcome the challenges, including consolidation of data across disparate sources, but more importantly, XBRL conversion of the data. And this was only possible with the help of automation.

How Does CRD IV Implementation Affect Firms with Business Operations in Europe?

CRD IV is expected to affect several financial as well as credit institutions. With the advent of digital technology, there arose an overwhelming need by regulators to create a sense of security in the market. So, before this point, the existing regime was considered too complex, not being tailored or risk-sensitive enough to different investment or business models, imposing a disproportionate compliance burden on smaller firms. Now, with the implementation of CRD IV, the process has been simplified, and this will result in more appropriate and risk-sensitive requirements for investment firms that better target the risks posed across different business models.

Automation of COREP and FINREP

There are financial institutions still relying on the process of feeding the data manually to generate XBRL. With the increasing complexity in additional templates and validation rules, the institutions must automate their reporting so that compliance is not burdensome. Automation in reporting processes does not necessarily mean integrating with the upstream systems of financial institutions that involve considerable implementation cost and effort. But it also means preparing the XBRL with raw data available in multiple spreadsheets. Implementation can be quick with low cost and easy maintenance.

Automation in COREP and FINREP are the most recent examples of regulatory regimes that banking and financial institutions need to comply with. And, given that regulatory reporting is mandatory, the ways banks choose to address it makes all the difference of adding or diminishing value for them. Automated COREP and FINREP processes not only consolidate data but also enable mirroring the structure of the business at a comprehensive level. The reports generated using this advance technology are consistently lined with several checkpoints to ensure that the data is accurately structured to meet a supervisor’s requirement.

How Automation Will Improve Filers’ Productivity in Reporting Various Templates

Automation seamlessly integrates and consolidates COREP and FINREP reports to provide accurate and cost-effective regulatory reporting, but data sufficiency is an important aspect.

Additionally, firms have to ensure that the data has been optimally normalized to minimize redundancies, and foster adaptability to changes, putting you in control of your COREP and FINREP reporting. This mammoth exercise provides banks with the capability to respond quickly to enquiries from regulators about their results, reducing the compliance overhead, and consequently, improve productivity.

DataTracks Solutions for COREP and FINREP Reporting

We are still in the 5th year of CRD IV mandate, offering CRD IV software that enables financial institutions to deliver automated COREP and FINREP Reporting. Reporting processes, frequency, and related technology can be aligned across traditionally siloed areas, including risk and finance. In addition, there are data mapping and data modelling concerns that can be resolved.

With many firms and financial institutions still facing challenges with the implementation of CRD IV, firms can reach out to XBRL service providers for professional assistance. DataTracks CRD IV software can not only help consolidate the data but also provide support with validation of the input against the EBA rules and assist in XBRL output for regulatory reporting. The solution is easy to use and furnishes EBA mandate validations, rendering high-quality reports. Hosted on a secure cloud, DataTracks gives you complete control and security over your data. To discuss more on the next steps and how you can get started, get in touch with DataTracks at or call +31 (0) 20 2253 702

About DataTracks:

DataTracks, Singapore, is a global leader in disclosure management software. DataTracks serves 17,000 business enterprises in 24 countries. DataTracks software and services have been used to prepare more than 180,000 compliance reports so far for filing with regulators such as SEC in the United States, ESMA, EBA and EIOPA in European Union, HMRC in the United Kingdom, ACRA in Singapore, SSM in Malaysia, CIPC in South Africa and MCA in India.

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