Finance & regulatory reporting

Introduction

The post-crisis flood of regulations implies a major mindset change for financial institutions. In the past, regulation was just one of many considerations for banks. Capital never really was a significant business constraint. Today, not only the rules are much more complex, but as a response to the financial crisis regulators are more demanding in improving compliance, reporting, the underlying business processes and data.

Executives of financial institutions in all regions, unsurprisingly given the last five years, consider all new regulation the main priority. In a recent benchmark 64%  of the executives stating this as very important. However, very few (only 22%) consider themselves very prepared.

New regulations

During the last years important new regulation has been implemented. For the next years (among other things) the regulation below will have an large impact on the financial institutions.

Anacredit

Introduction

In 2014 the ECB announced the development of a central credit register. The objectives of the credit database (Anacredit) is to support the ESCB and the ECB in the performance of different tasks, including:

  • Monetary policy analysis and operation
  • Risk management
  • Financial stability surveillance

The draft regulation was published in December 2015. Based on this regulation 94 data attributes have to be reported for each instrument.

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IFRS9

In 2014 the IASB (International Accounting Standards Board) issued the new standard (IFRS 9) for the accounting of financial instruments. The reason for this new standard is that many financial institutions experienced that the requirements in the current standard (IAS 39) were difficult to understand, apply and interpret. To address the deficiencies of the current standard (IFRS 9), a new standard for the financial reporting of financial instruments that is more principle-based is being introduced. IFRS 9 replaces most of the guidance in IAS 39. The IASB decided to accelerate its project to replace IAS 39.

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How can PwC help?

New regulations;

  • We help to understand the implications of accounting changes and the wider challenges that adoption of the new reporting standards brings to a business. 
  • Impact assessment; the execution of an impact assessment to create insight in the changes for your company
  • Implementation; PwC has developed an standardized approach for the implementation of new regulation. The approach is customized for each new regulation such as Anacredit, IFRS 9 and BCBS 239. 
  • Training of your employees regarding the new regulation

Finance & Risk transformation:  based on our experience with Finance & Risk transformation programmes we can support in all phases of the transformation. Based on our five dimensions model we develop a specific approach per bank and per phase.

Smart Close: financial institutions are under pressure to deliver improved and more transparent data. We can help you optimize your closing and reporting process.

Contact us

Eugénie Krijnsen

Partner

Tel: +31 (0)88 792 36 98

Sophie de Vries

Director

Tel: +31(0)88 792 64 58

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