Is your data quality sufficient to comply with the ongoing reporting requirements?
Banking alert | 31 August 2017
On August 10th the ECB published the first set of Q&As along with a data validation checks guide, explaining the main validation checks that will be performed to ensure that the data quality required for AnaCredit reporting is sufficient.
Who is in scope?
This is described in the article 3 of the regulation and includes both credit institutions and foreign branches, provided they are resident of a Euro Member State.
In its explanatory note, the ECB confirms that the scope of the data collection covers data on credits extended or serviced by:
- Credit institutions located in the euro area
- Foreign branches of euro area credit institutions, including non-euro area branches;
- Foreign branches that are located in the euro area but are part of a credit institution resident outside the euro area.
What type of data should be reported?
AnaCredit will require over 100 data points to be reported for each exposure in the scope. Those data points cover many aspects of the exposure, including:
- Data related to counterparty (e.g. LEI code, address, number of employees, balance sheet total, etc.)
- Data related to instrument (e.g. type of instruments, currency, non performing status, interest rate type, payment frequency, etc.)
- Data related to the collateral or other mitigation techniques (e.g. type of protection, real estate collateral location, original protection value, etc.)
- Accounting data (e.g. accumulated impairment amount, source of encumbrance, status of forbearance and renegotiation, etc.).
What is the timeline?
30 September 2018: First complete AnaCredit reporting
How we can help
- Conducting data gap analysis to ensure availability and accessibility of future data points required by AnaCredit
- Ensuring alignment with other prudential reporting requirements (FINREP/COREP) and other regulatory requirements (IFRS9, BCBS 239)
- Supporting the adequate inclusion of AnaCredit in the Finance and Risk IT infrastructure, including tool selection process, custom solution development