Over the last decade, banks and other financial services firms have been facing an ever-growing number of regulatory requirements and consequent reporting obligations originating from various national and supranational regulators and supervisors. Higher complexity, frequency and variety of reports, with more demand for granularity, often creating data redundancies and inconsistencies, have forced banks to spend more on reporting duties at the expense of other areas of commercial activity.
In this regard, establishing a shared regulatory reporting utility, platform, or a hub, could be a potential solution also taking into consideration the emergence of new technologies. Key components of mutual regulatory reporting processes are related to raw data processing on a shared platform, joint definition of reporting models in accordance with regulation requirements and a possibility of data multi-use covering the full spectrum of financial and prudential reporting areas.
Shared regulatory reporting represents an innovative approach to banking supervision and statistical data exchange fostering transparency of reporting processes, higher data quality, less redundant data deliveries, higher flexibility in case of new requirements, and lower costs.
The Luxembourg Bankers’ Association, its Digital Banking and FinTech Innovation Cluster (DBFI), and interested ABBL members have launched a feasibility study to understand challenges and opportunities for the eventual establishment of a financial reporting hub in Luxembourg serving the needs of the banking sector. Specifically, the study will have to shed light on the substance for the hub drawing upon experience in other jurisdictions and expectations of various stakeholders such as financial institutions, regulators, supervisors, and reporting standards organisations.
Founding partners of the project
- ABBL – The Luxembourg Bankers’ Association
- Banque et Caisse d’Epargne de l’Etat, Luxembourg
- Banque Internationale à Luxembourg
- Banque Raiffeisen & Post Finance
- BGL BNP Paribas
- Pictet & Cie (Europe)
- SIX Payment Services (Europe)
Project partners have chosen Grant Thornton Luxembourg, a provider of tax, audit and advisory services, to conduct the feasibility study.
The ABBL will keep its members and the larger community informed about the outcomes of the study.