AnaCredit report – technical challenges

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A central credit register for all member states of the Eurozone (and other European Union countries that wish to participate) is planned to be created by the beginning of 2018. National Central Banks will be obliged to collect and send granular data about the credit exposures of credit institutions.

The new report involves new requirements and challenges for the banking sector. The AnaCredit report will consist of hundreds of thousands of records, which must be aggregated from many different sources in different formats. Tha instance will “weigh” a few gigabytes and will be sent to the supervisor in a required format – probably XML-based.

In cooperation with a German consulting company, we are working on the AnaCredit reporting module in aSISt.

AnaCredit

 The solution deals with major issues regarding AnaCredit report:

  1. Hundreds of thousands of records to be prepared
    A single entity would report hundreds of thousands of records that need to be prepared and processed by the software. According to Polish mandatory reporting laws, aSISt has already been working with long lists of records regarding Exposures.
  2. The format and size of the report
    It is highly probable that the data will be delivered to the supervisor in the required XML-based format and the IT system needs to take into account that the size of the data could be a few gigabytes. aSISt is dedicated to obligatory reporting in XBRL and XML-based formats; we guarantee technical correctness of the reports.
  3. Many sources and a lack of information
    Granular information should provide a wide selection of over 170 attributes identified in 12 groups, including:
  • Counterparty reference data (e.g. Legal Entity Identifier, Type of entity)
  • Instrument (e.g. Currency, Payment frequency)
  • Financial (e.g. Interest rate, Transferred amount)
  • Counterparty – instrument (e.g. Contract identifier, Reporting basis)
  • Joint liabilities (e.g. Counterparty identifier, Joint liability)
  • Linked contract (e.g. Current reporting agent identifier, Type of link)
  • Accounting (e.g. Accounting classification of instruments, Prudential portfolio)
  • Collaterals and guarantees received (e.g. Real estate collateral location, Date of last valuation of collateral)
  • Instrument – collaterals and guarantees received (e.g. Senior credit secured by the collateral/guarantee, Observed agent identifier)
  • Counterparty credit risk (e.g. Large exposures, Probability of default)
  • Credit risk (e.g. Risk weight, Exposure value)
  • Group of connected clients (e.g. Reporting basis, Group of connected clients code)

These data need to be prepared and added by the reporting entity. The challenge for IT is to aggregate, combine and filter the data.

Due to a sophisticated data automation module that enables mapping and ETL processing, aSISt is the perfect solution that can aggregate, filter and combine data from different sources. Information is processed and entered directly into the report.

Challenges desribed above define the needs of financial institutions for a sophisticated dedicated reporting solution like aSISt, which guarantees consistency with validation rules and technical requirements for the report.

 

 
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