This chapter provides an understanding of the OFS AGILE RP EBA application and its scope.
Topics:
· Overview
· OFSAA Regulatory Reporting Architecture
· Scope
With the onset of regulatory requirements from a variety of regulators around the globe, financial institutions are struggling to keep up with the constantly changing regulatory environment and the regulators themselves are finding it difficult to analyze a pile of reports. In turn, the European Banking Authority (EBA) introduced a common standard of reporting: one for Financial Reporting (FINREP) and one for Common Reporting (COREP). The two standards use a very structured way of gathering data, and also introduced the Data Point Model (DPM) along with the relational database to provide standard meaning to all reporting elements.
On the lines of common reporting requirements as stipulated by the EBA, the European Central Bank (ECB) also came out to collect detailed credit risk data of Non-Natural Persons in a harmonized manner. ECB issued a regulation on May 18, 2016, widely known as AnaCredit (Analytical Credit Dataset) Regulation, to collect granular credit and credit risk data with effect from reporting date September 30, 2018.
While on one hand, ECB ensures to harmonize reporting requirements and implementation practices, on the other hand, it gives discretionary powers to the National Central Banks (NCBs) either to collect additional data or to provide derogations for small resident reporting agents.
The OFS AGILE RP EBA solution addresses the reporting requirements of both the regulators, EBA, and ECB. Also, it addresses the reporting requirements concerning AnaCredit as laid down by the Central Bank of Malta (CBM).
The OFS AGILE RP EBA solution enables financial services organizations to manage and execute regulatory reporting in a single integrated environment. It automates end-to-end processes from data capture through submission with industry-leading solutions. It leverages Oracle Financial Services Analytical Application (OFSAA) and Oracle Financial Services Data Foundation (OFSDF) for managing analytical application data. The AgileREPORTER in Regulatory Reporting Solution (RRS) enables firms to automate the final mile of the reporting process. It provides prebuilt integration to Lombard Risk Reporting, eliminating the requirement for further manual intervention. The solution ensures data integrity allowing banks to focus more time on analyzing and gaining new business insight from their growing stores of data instead of preparing data and reports with the sole objective of meeting submission deadlines.
This interface connects the Oracle FSDF to Vermeg Portal. As one can see in the Architecture (Figure 1), Data flows from OFSAA to Vermeg Portal.
Figure 1: Regulatory Reporting Solution Architecture
OFSDF is an analytical data warehouse platform for the Financial Services industry. OFSDF combines an industry data model for Financial Services along with a set of management and infrastructure tools that allows Financial Services Institutions to develop, deploy, and operate analytical solutions spanning key functional areas in Financial Services, including:
1. Enterprise Risk Management
2. Enterprise Performance Management
3. Customer Insight
4. Financial Crime and Compliance Management
OFSDF is a comprehensive data management platform that helps institutions to manage the analytical data life cycle from sourcing to reporting and business intelligence (BI) using a unified, consistent platform and toolset.
AgileREPORTER is a form and workflow tool that enables both creation and submission of regulatory returns. AgileREPORTER addresses the financial reporting requirements of both domestic and international banks and financial institutions by automating compliance with mandated reports to central banks, regulatory agencies. AgileREPORTER works easily with multiple sources of information as it standardizes data elements and automates regulatory report production in prescribed templates with the associated workflow for automatic submission. It is a reliable and efficient infrastructure to compile, generate, and submit regulatory reports. It collects data from the universe (not just OFSAA Results). It provides automated repeated manual adjustments, variance analysis, and validation checks.
The solution provides a prebuilt interface or integration between FSDF and AgileREPORTER. With this integration, end-user can automate end to end reporting processes covering data preparation to the last mile of reporting.
Oracle Financial Services Regulatory Reporting for European Banking Authority (OFS AGILE RP EBA) covers the following regulatory reports for specified release as mentioned in the table:
Table 2: Scope of Regulatory Reports and Schedules
Report Name |
Schedule Name or Description |
Released Version |
|---|---|---|
COREP - Capital Adequacy |
C 01.00 - Own Funds Definition |
8.0.8 |
COREP - Capital Adequacy |
C 02.00 - Risk Exposure Amounts |
8.0.8 |
COREP - Capital Adequacy |
C 03.00 - Ratios |
8.0.8 |
COREP - Capital Adequacy |
C 04.00 - Memorandum Items |
8.0.8 |
COREP - Capital Adequacy |
C 05.01 - Transitional provisions: Summary & Grandfathered instruments not constituting State aid |
8.0.8 |
COREP – Credit Risk |
C 09.01 - Geographical breakdown of exposures by the residence of the obligor (SA exposures) |
8.0.8 |
COREP – Credit Risk Standardized Approach |
C 07.00 – Credit and counterparty credit risks and free deliveries: Standardized Approach to capital requirements |
8.0.3 |
COREP – Operational Risk |
C 16.00 - Operational Risk |
8.0.9 |
COREP – Operational Risk |
C 17.00 – Operational risk: Losses and recoveries by business lines and event types in the last year |
8.0.3 |
COREP – Market Risk |
C 21.00 – Market Risk: Standardized Approach for position risk inequities |
8.0.9 |
COREP – Market Risk |
C 22.00 – Market Risk: Standardized Approaches for Foreign Exchange Risk |
8.0.9 |
COREP – Large Exposures |
C 26.00 – Large Exposures Limits |
8.0.3 |
COREP – Large Exposures |
C 27.00 – Identification of the Counterparty |
8.0.3 |
COREP – Large Exposures |
C 28.00 – Exposures in the Non-Trading and Trading Book |
8.0.3 |
COREP – Large Exposures |
C 29.00 – Detail of the exposures to individual clients within groups of connected clients |
8.0.3 |
COREP – Large Exposures COREP - Large Exposures |
C 30.00 – Maturity buckets of the 10 largest exposures to institutions and the 10 largest exposures to unregulated financial entities |
8.0.3 |
COREP – Large Exposures |
C 31.00 – Maturity buckets of the 10 largest exposures to institutions and the 10 largest exposures to unregulated financial entities: detail of the exposures to individual clients within groups of connected clients |
8.0.3 |
COREP – Leverage Ratio |
C 40.00 – Alternative treatment of the Exposure Measure |
8.0.4 |
COREP – Leverage Ratio |
C 41.00 – On- and off-balance sheet items – the additional breakdown of exposures |
8.0.4 |
COREP – Leverage Ratio |
C 42.00 – Alternative definition of capital |
8.0.4 |
COREP – Leverage Ratio |
C 43.00 – Breakdown of leverage ratio exposure measure components: Off-balance sheet items, derivatives, SFTs and trading book |
8.0.4 |
COREP – Leverage Ratio |
C 44.00 – General Information |
8.0.4 |
COREP – Leverage Ratio |
C 47.00 – Leverage Ratio Calculation |
8.0.4 |
COREP – Stable Funding |
C 60.00 - Items requiring Stable Funding |
8.0.7 |
COREP – Stable Funding |
C 61.00 - Items providing Stable Funding |
8.0.7 |
COREP – Liquidity Coverage |
C 72.00 – Liquidity Coverage. Liquid Assets |
8.0.3 |
COREP – Liquidity Coverage |
C 73.00 – Liquidity Coverage. Outflows |
8.0.4 |
COREP – Liquidity Coverage |
C 74.00 – Liquidity Coverage. Inflows |
8.0.5 |
COREP – Liquidity Coverage |
C 75.00 – Liquidity Coverage. Collateral Swaps |
8.0.4 |
COREP – Liquidity Coverage |
C 75.00 – Liquidity Coverage. Calculations |
8.0.9 |
FINREP |
F 01.00 – Balance Sheet Statement [Statement of Financial Position] |
8.0.4 |
FINREP |
F 02.00 – Statement of profit or loss |
8.0.3 |
FINREP |
F 03.00 – Statement of comprehensive income |
8.0.5 |
FINREP |
F 04.00 – Breakdown of financial assets by Instrument and by Counterparty Sector |
8.0.3 |
FINREP |
F 05.00 – Breakdown of loans and advances by product |
8.0.3 |
FINREP |
F 06.00 – Breakdown of loans and advances to non-financial corporations by NACE Codes |
8.0.3 |
FINREP |
F 07.00 – Financial assets subject to impairment that are past due or impaired |
8.0.3 |
FINREP |
F 08.00 – Breakdown of financial liabilities by product and by the Counterparty |
8.0.3 |
FINREP |
F 09.00 – Off-balance sheet items subject to Credit Risk |
8.0.3 |
FINREP |
F 10.00 – Derivatives: Trading |
8.0.3 |
FINREP |
F 11.00 – Derivatives - Hedge Accounting |
8.0.3 |
FINREP |
F 12.00 – Movements in allowances and provisions for credit losses |
8.0.5 |
FINREP |
F 13.00 – Breakdown of loans and advances by collateral and guarantees |
8.0.3 |
FINREP |
F 14.00 – Fair value hierarchy: financial instruments at fair value |
8.0.3 |
FINREP |
F 15.00 – Derecognition and financial liabilities associated with Transferred Financial Assets |
8.0.6 |
FINREP |
F 16.00 – Interest income and expenses by Instrument and Counterparty |
8.0.3.1 |
FINREP |
F 17.00 – Reconciliation between IFRS and CRR scope of consolidation |
8.0.5 |
FINREP |
F 18.00 – Information on performing and non-performing exposures |
8.0.3.1 |
FINREP |
F 19.00 – Information on forborne exposures |
8.0.3.1 |
FINREP |
F 20.00 – Geographical Breakdown |
8.0.3.1 |
FINREP |
F 21.00 – Tangible and Intangible Assets |
8.0.5 |
FINREP |
F 22.00 – Fee and commission income and expenses by activity |
8.0.5 |
FINREP |
F 30.00 – Geographical Breakdown |
8.0.5 |
FINREP |
F 31.00 – Related Parties |
8.0.5 |
FINREP |
F 40.00 – Group Structure |
8.0.6 |
FINREP |
F 41.00 – Fair Value Hierarchy |
8.0.5 |
FINREP |
F 42.00 – Tangible and Intangible Assets |
8.0.5 |
FINREP |
F 43.00 – Provisions |
8.0.5 |
FINREP |
F 44.00 – Net defined benefit Plan Assets and Liabilities |
8.0.5 |
FINREP |
F 45.00 – Gains and losses on Financial Assets and Liabilities/ on de-recognition of Non-Financial Assets |
8.0.5 |
FINREP |
F 46.00 – Statement of changes in Equity |
8.0.5 |
AnaCredit |
AnaCredit – Central Bank of Malta (CBM) Regulatory Reporting |
8.0.6 |