Regulatory blog
The latest innovations and developments in the area of banking supervisory law.
The regulatory reporting environment is evolving due to initiatives such as BIRD, IReF, EBA's DPM Refit, and ESAP, which focus on standardizing data formats and minimizing redundancies. While this new landscape presents challenges, it also offers institutions opportunities to improve their reporting processes and data quality. Leveraging our expertise coupled with access to extensive global resources within the international PwC network, we assess the impact of these initiatives and offer our clients high-quality services to navigate the evolving regulatory landscape.
As supervisory authorities intensify efforts to standardize and streamline regulatory reporting, banks are compelled to adjust their reporting processes accordingly. However, unlike previous initiatives, the new requirements transcend mere reporting scope, encompassing the reporting process in its entirety. This expanded scope necessitates significant restructuring and reevaluation of existing reporting practices, requiring banks to invest more time, resources, and funds to implement changes effectively.
The number of initiatives underway complicates the situation. With some requiring simultaneous implementation alongside existing requirements, banks are encouraged to initiate preliminary studies for potential implementation to effectively manage the evolving regulatory landscape. Pilot projects conducted thus far have shown promising medium to long-term cost savings for reporting systems, providing added motivation for early adoption.
Whether it's the implementation of DPM ReFit, IReF, BIRD, or other "future of reporting" initiatives, we are here to help you. With our comprehensive expertise and access to the extensive knowledge of PwC experts worldwide, we're prepared to analyze the impact of all initiatives and provide high-quality services to our clients.
Banks Integrated Reporting Dictionary (BIRD)
What is BIRD?
- BIRD s a collaborative initiative between the Statistics Committee of the European System of Central Banks (ESCB) and institutes in banking industry
- The aim is to reduce the regulatory burden for banks, foster cooperation in the area of regulatory reporting and improve the quality of data reported to authorities
- For this purpose, BIRD offers a harmonized data dictionary and harmonized data model specifying how to extract and transform the data from the bank's internal IT systems in order to generate reports required by the authorities
Ongoing work and next steps?
- Analysis and inclusion of IReF together with the updates to FINREP (EBA ITS) as one of the top priorities going forward
- Further work towards full operationalization of the BIRD Transformation Rules
- Feasibility assessment for further integration of COREP and integration of ESG requirements
What are impacts and technical changes?
- BIRD does not impose any new regulatory requirements on banks or changes in IT systems
- However, as the first step towards BIRD adoption, banks need to assess the compatibility of their data models with BIRD and create a prioritized roadmap for transition to BIRD data model in close alignment with BIRD timeline
What is the timeline?
2015:
Launch of BIRD Pilot for AnaCredit and SHS
2018:
First BIRD extension for FINREP EBA ITS and COREP credit risk envisaged
2024:
Release of the latest BIRD Data Models and BIRD Transformation Rules
Advantages of the BIRD
Enhanced data quality - BIRD offers a standardized data model and references, promoting consistency and accuracy in transforming data from various sources. This aids in detecting and rectifying errors in data prior to its submission to regulatory bodies.
Ensured consistency - BIRD assists in maintaining consistency in data reporting across various banks and jurisdictions, enabling supervisory authorities to aggregate and analyze data more effectively.
Simplified reporting processes - BIRD simplifies the reporting process for banks by offering a common framework, thereby reducing the time and resources needed to meet reporting requirements.
Reduced reporting costs - BIRD aims to decrease reporting costs by streamlining the reporting process and minimizing the likelihood of errors.
PwC's BIRD (+) initiative
The PwC team is actively engaged in the BIRD initiative, with a strong emphasis on the workstreams on data modeling and on prototyping. Our primary goal is to develop frameworks that empower banks to maximize the value of BIRD outputs. These frameworks simplify the alignment of source data with the BIRD input layer, enabling banks to:
- Leverage ECB Initiatives
- Maintain control over reported data
- Create efficient data storage and generate regulatory reports
- Extend storage to encompass national and internal reports
- Handle manual data corrections effeciently
- Deploy the solution within your preferred IT environment — whether in the cloud or on-premises.
- Utilize GenAI to pinpoint the essential data within source databases
News in the PwC Regulatory Blog
Further publications on the future of regulatory reporting can be found in our Regulatory Blog
Our partnerships at a glance
Why cooperate with PwC
We cordially invite you to inform yourself about current developments and to join us in taking a reflective look at the starting position of your institute.
We are always available to answer any questions you may have. Our team of experts has been closely involved in initiatives relating to the future of the reporting system from the outset.
Take advantage of the opportunity to benefit from our comprehensive technical expertise, many years of experience in regulatory reporting and our competence in the area of IT implementations.
Thought leadership
We take into account the changes in the reporting system. In doing so, we focus on "lean" regulatory reporting. The latest regulatory requirements are analyzed by our experts and prepared with innovative solutions.
Technological expertise
We are a team of certified specialists and can draw from a portfolio of diverse tools to assist with report validation, calculation and disclosure.
Managed Services
As part of our managed services, we already help with the establishment of complete reporting for IFR, AWV and FinaRisikoV. With our innovative reporting tool, we create ready-to-submit XBRL reports in the shortest possible time, which are checked against over 9,000 validation rules from the EBA, ECB, SRB and national supervisory authorities. New compatible reports are added continiously.
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Experienced experts in regulatory reporting and EBA stress test
Our team is characterized by extensive expertise in regulatory reporting:
• COREP, FINREP, AnaCredit, statistics, etc.
• IFR reporting
• Pillar 3 disclosures
• Ad hoc reporting (STE, B3 monitoring, etc.)
• Future of Reg Reporting (BIRD, IReF, etc.)
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