riskregulation,Transaction Banking,

riskregulation,Transaction Banking,

The Australian Prudential Regulation Authority (APRA) and the Reserve Bank of Australia (RBA) are making a significant number of changes to core regulatory reporting requirements, some of which have not changed in the last 15 years. Key components of these enhancements include making sure that Basel III requirements are appropriate for the Australian market and optimizing Authorised Deposit-Taking Institutions (ADIs) core balance sheets.

These regulatory changes will have a major impact on how ADIs manage their balance sheet, credit risk, customer relationships and other practices. It is also clear that these regulations will continue to evolve and this need for agility will put immense strain on tactical, stop-gap solutions. More than just changing their reporting practices, ADIs will need to review business practices and improve their data management capabilities to comply with a vastly expanded set of new and evolving reporting requirements. Strategic and forward-looking discussion on regulatory data management strategies is required from finance and compliance teams across the industry as they move towards designing compliance solutions with longer term ROI in terms of transparency and change management.

We believe there is no time better than now for ADIs to invest in technology that addresses both the existing regulatory reporting demands, and has the flexibility to adapt to the new business requirements and data types. By integrating current reporting with forward-looking data analytics and controls, ADIs will ultimately be able to realise both internal operational efficiencies and cost savings on top of satisfying regulatory reporting needs.

Re-disseminated by The Asian Banker