Why do clients need the best Pillar 3 based CRD-IV solution?

Why a CRD IV Pillar 3 solution?

For over a decade now, banks have been transforming structurally. Just as the period of stability was in the offing, the time for a digital transformation has begun. The industry’s dropping operating profitability is a testament to that. However, transformations need economic resources. And it is not easy to drum up the dough.

The banking industry needs innovation in cost management and alternate revenue streams to keep the transformations going in today’s competitive landscape. Risk management and regulatory compliance are the departments where a transformation and focus can produce spare economic resources.

For instance, The Capital Requirements Directive IV (‘CRD IV’), a part of the European Union (‘EU’) legislative in conjunction with applicable technical standards and guidelines issued by the European Banking Authority (‘EBA’).

If you are from finance, you probably know that this directive requires firms to disclose quantitative and qualitative information on capital adequacy and key risks, the third among the 3 Pillars that form a part of this directive. With the aim of market discipline, it has also introduced a reporting framework called COREP and FINREP for banks and investment firms throughout the European Union.  Banks are required to publish their Pillar 3 report concurrently with their year-end financial report.

Apart from having to invest in departments and teams, banking and financial institution are also most likely to face the below challenges in complying with this directive:

  • Consolidation of data across disparate sources
  • XBRL conversion of the data
  • Improving comparability and consistency of disclosures
  • Entering data into prescriptive fixed form templates used for quantitative information
  • Striking a balance between the use of mandatory templates and the need to allow senior management sufficient flexibility to provide commentary on a bank’s specific risk profile
  • Publish the Pillar 3 report in a standalone document that is readily accessible

How to overcome these challenges?

Many firms are likely to continue to invest in sharpening their institutional expertise in risk management and compliance. But combined with costs of internal controls, technology integrity, and data management, the investment can sky-rocket while hitting directly at the bottom line.

Managing the business-critical processes of regulatory compliance need not be investment-heavy. Some firms are choosing to bridge gaps in internal capabilities by adopting a more holistic and value-based approach to this – a secure cloud-based software from a trusted service provider like DataTracks.

At DataTracks, we take a strategic, experience-driven, outcome-based road to deal with regulatory compliance. Our flagship CRD IV software helps you consolidate your data, validate the input against the EBA rules, and provide an XBRL output for regulatory reporting. Our product also provides EBA mandate validations and renders high-quality reports.

With high levels of operational integration and scalability, we leverage the specialized skills of our XBRL experts and advanced technology to help you produce an accurate compliant report that is ready for submission.

Get in touch with a DataTracks expert @+31202253702 or email at enquiry@datatracks.eu to fulfill your various regulatory reporting needs.

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