AnaCredit: Why it matters to look at other regulations in context

Abstract

In May 2016, the European Central Bank (ECB) adopted the regulation on the collection of granular credit and credit risk data known as ‘AnaCredit’. Although data management is a common thread running through multiple new regulatory requirements, when planning for AnaCredit compliance it is important to understand the requirements and potential overlaps with adjacent regulations. Banks need to find a more holistic and agile path to compliance that provides an agile end state with greater data granularity, better governance and regulatory reporting, and can accommodate future changes in market practices and regulations. From a forward-looking risk data management perspective, this means that comprehensive data structures should only be built once. They should enable the bank to capture all relevant data across business lines in a consistent and well-defined database structure that is easy to extract, analyse and report on. The end-to-end credit process will need to be consistent, deliver coherent data throughout the lifecycle of customer limits and exposures to facilitate the required data attributes without costly and time consuming manual data reconciliation.