By Silvio Santarossa, Partner Risk Advisory Services &
Joana Elisa Maldonado, Regulatory Compliance Assistant
Data management and reporting are at the centre of regulatory compliance in 2017: BCBS 239, EMIR and by the same token, AnaCredit – the analytical credit database project of the European Central Bank (ECB). AnaCredit will be a new dataset with granular information on individual bank loans in the euro area to support decision-making in monetary policy and macroprudential supervision. Adopted in 2014 and published in its final version in May 2016, the AnaCredit Regulation ECB/2016/13 on the collection of granular credit and credit risk data will apply as from 31 December 2017. While preparations for the first reporting in September 2018 are ongoing, we provide you with an overview of the AnaCredit requirements and point out the most important challenges of data collection, management and reporting.
AnaCredit (short for analytical credit datasets) is a building block of the ECB’s strategy for data collection and statistics. It will be a new dataset with clear, timely and harmonised information on individual bank loans to legal entities in the euro area, managed by the European System of Central Banks (ESCB). The new improved statistics will support macroprudential supervision and serve decision-making in monetary policy, such as risk and collateral management. In particular, the availability of detailed and comparable data will help to control potential build-up of systemic risks in the financial sector by allowing a more micro-based accurate analysis of sectorial or regional credit risks and the credit distribution to the economy. An example for a potential use is the analysis of credit availability to SMEs
The AnaCredit Regulation primarily applies to credit institutions located in the euro area. In addition, foreign branches of euro area credit institutions and foreign branches which are located in the euro area fall under the new reporting obligation. Data related to credits extended by subsidiaries of credit institutions are not included if the subsidiary concerned is not a credit institution located in the euro area. Member states of the European Union which are not part of the euro area may join AnaCredit by adopting specific national laws.
AnaCredit requires banks to report about loans to corporations and other legal persons as counterparts, loan-by-loan. This means that the reporting has a significantly different structure from the previous borrower-by-borrower reporting.
|AnaCredit||Templates||Tables||Frequency||Number of Attributes|
|Counterparty Reference Data||Once||23|
e.g. number of employees, annual turnover
e.g. currency, settlement date
e.g. transferred amount, accrued interest
|Counterparty Instrument Data||Once||1|
|Joint Liabilities Data||Monthly||1|
joint liability amount
|Template 2||Accounting Data||Quarterly||16|
e.g. encumbrance sources, prudential portfolio
|Protection Received Data||Once||10|
e.g. value & maturity date of the protection
|Instrument Protection Received Data||Monthly||2|
e.g. protection allocated value
|Counterparty Risk Data||Quarterly||1|
probability of default
|Counterparty Default Data||Monthly||2|
e.g. default status of the counterparty
|Identifiers||Reporting Agent Identifier||7|
|Observed Agent Identifier|
|Protection Provider Identifier|
Correct implementation of AnaCredit reporting is crucial, since non-compliance can trigger sanctions. Timely compliance is challenged by the following three major issues:
Finalyse is assisting banks in all three steps from preparatory data assessment to data management and processing and finally the reporting to the supervisors. We help our clients to assess the impact of the AnaCredit regulation, set up a compliance strategy and coordinate the implementation with other data and reporting requirements such as FINREP, COREP, IFRS 9 or BCBS 239. Do not hesitate to contact Silvio Santarossa to receive more information on our related services for timely and efficient AnaCredit compliance.