Financial institutes now send their regulatory reports to Germany’s Federal Financial Supervisory Authority (BaFin) and the Bundesbank almost entirely automated using XBRL and XML. However, these file formats give the data a hierarchical structure, making it difficult to nearly impossible to read the data afterward, let alone perform systematic analysis.
This circumstance would be non-critical if report data were congruent with the data in an institute’s central database – however, experience has shown that various manual and technical adjustments get made to reporting software. When the supervisory authority or the auditors have questions regarding the reported data, an extensive and largely manual research process has to be undertaken to answer questions and clarify deviations that have been identified. Furthermore, reporting data is also useful in other business areas for providing support in risk control and making it easier.
Technical analysis of reports – and, accordingly, more efficient research – is indeed possible, yet can be cost prohibitive under some circumstances. The producer charges for enhancement of the widely deployed standard reporting software, with additional license fees for the implementation of report analysis add-on modules. When an institute wants to leverage their information for other business areas, further software licenses become necessary. This can quickly develop into a sizable cost block exceeding the efficiency gain compared to manual research.
With the aid of the standard software SAS, this challenge can be overcome with great ease and cost efficiency. To enable financial institutes to prepare, analyze, and use their reporting data efficiently, Q_PERIOR has developed the procedure “Q_Regulatory Analytics with SAS.” The procedure is significantly more cost-effective than implementation of the corresponding standard software modules, which aside from the initial costs have annual license fees that rise with each additional user.
Our procedure offers the following advantages compared to the standard software solution:
We’ll provide you with support for deriving the right conclusions for your company based on regulatory reports without the need for a large-scale and expensive project for implementation.