03 December 2016

44975

Retired Member

2,015Posts 6,604,709Views 2,334Comments

COREP Large Exposures - a major challenge for firms

01 April 2014  |  1538 views  |  0

On 4 March, Arkk Solutions invited a number of their COREP clients to participate in a customer focus group with the aim of identifying the major challenges in the CRD IV reporting application and improving the software user experience.

One of the key points made at the meeting was that identifying the scope of the CRD IV obligation is a significant challenge for businesses. To address this issue and help our clients identify their specific requirements, we work closely and partner with financial services firms and regulatory bodies. Our strong working relationships with industry partners and regulators allow us to provide first-hand advice and expertise.

Another major issue for all COREP Group participants turned out to be the reporting of Large Exposures (LE). The LE regulatory regime has introduced new reporting requirements for large exposures and concentration risk. The LE template requires organisations to:

  • determine the counterparty or the group of connected counterparties to which they have a large exposure

  • disclose the exposure amount before and after considering the effect of the credit risk mitigation

  • disclose the category of funded and unfunded credit protection

The reporting also includes ‘direct’ and ‘indirect’ exposures (e.g. exposures allocated to a ‘guarantor’) and ‘scheme’ exposures (e.g. exposures through ‘look-through’). Taking into account the complexity of the LE reporting and the imposed changes, organisations should be very careful with the implementation of the LE reporting. 

Reporting validation, variance analysis and test filing were other points of interest emphasised at the meeting. Arkk Solutions’ COREP and FINREP adapter provides built-in validation tools and generates human readable XBRL reports for additional assurance. We have already been successfully test-filing XBRL reports on the FCA’s test environment (GABRIEL). In addition, Arkk’s IT team is currently working on the development of additional features for validation, cross checks between return versions and variance analysis as well as disclosure management system.

TagsRisk & regulation

Comments: (0)

Comment on this story (membership required)

Latest posts from Retired

An industry matured: highlights from Mobey Day 2016

18 October 2016  |  942 views  |  0 comments | recomends Recommends 0 TagsRetail bankingInnovation

Reorganising for the Age of Collaboration

27 September 2016  |  2515 views  |  0 comments | recomends Recommends 0

Fintech innovation in the B2B space has only just begun

12 September 2016  |  13595 views  |  1 comments | recomends Recommends 0 TagsPaymentsInnovation

Protecting Data with DLP

23 August 2016  |  5318 views  |  0 comments | recomends Recommends 0 TagsSecurityBrexit

How to end what ails online commerce

22 August 2016  |  4760 views  |  1 comments | recomends Recommends 0 TagsPaymentsTransaction banking

Retired's profile

job title
location
member since 2014
Summary profile See full profile »

Retired's expertise

What Retired reads
Retired writes about

Who's commenting on Retired's posts

Alex Aleksandrovski
Ketharaman Swaminathan
João Bohner
Steven Hatton
Graham Seel
Nikhil Thadani
Gerard Hergenroeder
Konstantin Rabin
Matt Schofield
Anna Robert
Ian Davis