AxiomSL is ready to support the reporting requirements of the European Central Bank’s (ECB) Analytical Credit Dataset (AnaCredit) regulation, which is expected to affect a large number of financial institutions in the European Union and is due to be implemented in stages from the end of 2017.
AnaCredit aims to create a central register of granular data about credit granted by financial institutions in the eurozone and by institutions in other European Union countries that adopt the regulation, initially expected to be Denmark and Sweden. A more transparent view of credit granted is expected to give the ECB a clearer view of credit risk.
While AnaCredit is still being finalised, it is expected to call for reports covering more than 100 data attributes, many of which have not previously been needed for extenal reporting. The threshold for reportable credit exposure is also expected to be low, the ECB is considering €25,000 at the borrower level, meaning a large number of financial institutions will fall within the scope of the regulation.
AxiomSL plans to fulfil the AnaCredit reporting requirements using its automated regulatory reporting platform that aggregates, enriches and validates data before it is used to populate reports that are submitted to regulators. The platform can also support reconciliations between AnaCredit and other regulatory reports to ensure the consistency of submissions to different authorities.
David Attenborough, business development manager EMEA at AxiomSL, says: “We are ready to meet the requirements of AnaCredit as soon as reporting templates are available from the ECB, which could be mid next year. Meantime, we have built templates to demonstrate how we can complete AnaCredit reports for our customers.”
Many AxiomSL customers will already have some of the data needed for AnaCredit on the company’s platform, perhaps data used for Common Reporting requirements, but they will need to load additional data including Legal Entity Identifiers. Attenborough says the granular nature of data required by AnaCredit is similar to that used for the ECB’s Asset Quality Review and the Prudential Regulation Authority’s Firms Data Submission Framework. He comments: “Regulators increasingly require more granular data feeds as they want to see data that is being used in banks rather than receive top-level reports.”
The ECB’s implementation plans for AnaCredit come into effect at the end of 2017, when firms will need to report on credit granted to legal entities. In 2019, information will be collected on a consolidated basis across significant institutions under ECB banking supervision, and in the middle of 2020, institutions will need to report anonymised information on mortgage loans to households and credit granted to sole proprietors. Reporting frequency has not yet been established, but is likely to follow the quarterly reporting pattern used by Spain’s existing CIRBE credit register.
Beyond AnaCredit, AxiomSL is preparing to support regulatory reporting for the OECD’s Common Reporting Standard in 2017 and for MifID II.