The Luxembourg banking industry is exploring the potential of creating a shared regulatory reporting utility to deal with the growing burden of compliance and data demands from financial supervisory agencies.
The project is being overseen by the Luxembourg Bankers' Association (ABBL) and six of its banking members, along with SIX Payment Services.
With banks increasingly forced to spend more on reporting duties at the expense of other areas of commercial activity, the project partners believe that establishing a shared utility could help in fostering transparency of reporting processes, higher data quality, less redundant data deliveries, higher flexibility in case of new requirements, and lower costs.
The creation of such a platform would entail definition of reporting models in accordance with regulation requirements, says the ABBL, and a possibility of data multi-use covering the full spectrum of financial and prudential reporting areas.
The ABBL's digital banking and fintech innovation cluster is conducting an initial feasibility study, drawing on experience from other jurisdictions and exploring the application of modern data processing technology. Project partners have hired grant Thornton Luxembourg to oversee the process.