The client, a G-SIB specialised in Private Banking and Asset Management, Trade Finance and Corporate Banking, needed support to produce their BASEL III regulatory reporting in line with EBA ITSs. The local regulator forced the Bank to automate their regulatory reporting, especially the Liquidity and Solvency reporting because of recurring errors in regards to the regulatory deadlines. Avantage Reply assisted the CFO by organising the work streams within the department and by developing simple and automated models to ensure the compliance with those regulatory requirements.
To effectively support the client, Avantage Reply needed to quickly gain a deep understanding of the client organisation, its operations and financial data and to develop some tools that the client could use after the project. Indeed, the most difficult part was to work in a foreign environment and with an American accounting software that is not dedicated to European regulations.
Firstly, Avantage Reply conducted a gap analysis between the current status of their regulatory reporting with the CSSF comments and EBA requirements, including some audit points. Then, Avantage Reply implemented some automated tools (in excel) that computes automatically their regulatory reporting, including FinREP, CoREP, Large exposures, LCR, NSFR, ALMM, AE. Thanks to the automation of regulatory reporting, the CFO had more time to conduct quality and consistency checks on the reports before final submission. In parallel, Avantage Reply also created a simplified model to monitor their liquidity risks on a daily basis that is used by the Treasury and Accounting department.
Avantage Reply reviewed, produced and automated the required reports in due time to the CSSF and ECB as well as ensuring the quality of all reports were in line with EBA ITSs. For internal purposes, the Board of the client required the CFO to monitor their Liquidity issues on a daily basis in order to avoid potential breaches.