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