Leveraging the past Future-proofing the present. Rising to the CRD IV reporting challenge What s new for 2015?

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1 Leveraging the past Future-proofing the present Rising to the CRD IV reporting challenge What s new for 2015?

2 Context reminder (1/2) CRD IV Typical background situation The banking and investment industry as a whole has tended to underestimate the learning-curve for managing CRD IV, notably COREP, in XBRL You Regulator A technical brick is needed to fill in the gap between business requirements and the EBA s XBRL taxonomy specifications

3 Context reminder (2/3) What exactly is CRD IV reporting? A complex environment which needs to be finely analyzed COREP,= CA (Capital Adequacy) CR (Credit Risk) MKR (Market Risk) OR (Operational Risk) + CVA (Capital Valuation Adjustment) + LR (Leverage ratio) + Mortgage FINREP,= Financial consolidated reporting based on IFRS rules. Additional requirements involved as financial assets and off-balance sheet breakdowns LE,= Large Exposure means acting as an overlay "to prevent a firm from incurring disproportionately large losses as a result of the failure of an individual client or group of connected clients due to the occurrence of unforeseen events LCR,= Liquidity Coverage Ratio has two components as value of the stock of high-quality liquid assets in stressed conditions and Total net cash outflows, calculated according to the scenario parameters et by the supervisors Source :

4 Context reminder (3/3) What exactly is CRD IV reporting? A complex environment which needs to be finely analyzed NSFR,= Net Funding Stable Ratio aims to provide a sustainable maturity structure of assets and liabilities. The NSFR is defined as the amount of available stable funding relative to the amount of required stable fund. This ratio should be equal to at least 100% on an ongoing basis AE,= Asset Encumbrance reporting mainly aims to compare the reliance on secured funding and the degree of structural subordination of unsecured creditors and depositors across institutions and to assess the ability of institutions to handle funding stress FP,= Funding Plans focuses on assessing the feasibility, viability and soundness of funding plans, as well as their impact on the supply of credit to the real economy. Moreover, supervisor expects to coordinate the assessment of funding plans and assess their viability across the EU banking system SBP,= Supervisory Benchmarking Portfolio shall involve new templates in order to define portfolio risk relatively to a European average and based on threshold standards Source :

5 An increasingly fast-moving context (1/2) Focus on the upcoming version 2.3 taxonomy A constantly changing regulatory environment Invoke Insight #1 Version 2.3 shall contain AE and Funding Plans amendments according to the most recent EBA roadmap Invoke Insight #4 Further information about a potentially postponed deadline has not yet been confirmed. Nevertheless, we have serious concerns about the level of effort firms and software will have to make to meet the current timeline Invoke Insight #2 Version 2.3 was expected for Q4 2014: it shall be released in the course of February Version 2.4 and 2.5 could therefore mechanically be delayed Invoke Insight #3 A completely new type of reporting expected for this coming April. It will reinforce the comparability of capital requirements for internal ratings-based approach (IRBA) for credit risk and market internal risk models

6 An increasingly fast-moving context (2/2) Two major taxonomy releases per year Forward-looking pragmatism must be the motto for 2015! More Amendments More Corrections More Technical Evolutions Q&A clarifications Security Flexibility You ll need a very definite skill-set to cope! Efficiency Reactivity Accuracy Ability

7 From key skills to technical needs [ ] The enabling role of technology The road to success involves finding sustainable solutions to lighten the reporting burden, alleviating time-consuming tasks and reducing complexity Integrating Traceability,Automatic data,integration & last,minute adjustments Drill-down function in order to check the detail of the displayed information how your IT solution should help Upgrading Controlling Reporting Tailoring Fully-updated Templates Quick turnarounds XBRL formula validation engine and navigator Producing and centralizing CRD IV XBRL reporting, ready for submission Creating additional customized analysis reports

8 [ ] And from technical needs to the Invoke solutions portfolio Two complementary applications for end-to-end automation Automated data collection in keeping manual / direct keyboarding option available Agile import management allowing multi-source interfaces without imposing any specific format Detailed data import logs of import Transformation rules through indicator and analytical dimension conversions Multi-dimensional deduction rules (cubes) Production of regulatory reports in XBRL format by direct keyboarding or Excel import Centralization of all reports sent to the regulator as a single solution Integrated controls within the solution Monitoring of disclosure signed XBRL reports process Additional useful features include management of user profiles, regulatory calendar, statistics indicators and progress bars a ü ü Guaranteed flexibility as no specific development required for import/input Variety of data collection processes adaptable to heterogeneous data from multiple sources ü ü Available for on-site installation or as a SaaS solution hosted by Invoke Rapid-deployment out-ofthe-box solution

9 They have already trusted Invoke solutions and they talk about it! The tests were successful very quickly, and we were able to go full-xbrl with ready-touse solutions thanks to Invoke Sylvia Guinguené Regulatory Reporting Manager A big attraction of Invoke was that it offered a complete solution with significant flexibility. [ ] others offered packaged software, but we still had to do all the mapping; from our point of view, Invoke was the vendor offering the most complete, off-theshelf solution that we could plug into our existing IT systems Michael Bardram Senior IT Consultant A secure, long-lasting and efficient solution compared with a proprietary in house solution. Minimizing risk and long term maintenance efforts in regards of internal IT resources Conny Zander Information Manager

10 We are proud of our clients (1/2) Banking, investment and supervisory institutions CRD IV National Competent Authorities Banking and investment Industry Invoke s added-value #1 Dedicated in-house team of R&D specialists supported by domain experts Invoke s added-value #2 Trusted XBRL technology provider to both supervisory authorities and industry

11 We are proud of our clients (2/2) Insurance sector Solvency II Invoke s added-value #3 Direct member of the XBRL International consortium and Founding Member of XBRL France, right at the heart of the international regulatory environment FAS Regulatory S2 e-filing Insurance Portal Invoke s added-value #4 Unparalleled reactivity in adapting Invoke solutions to any taxonomy

12 Contacts We ll be delighted to answer your questions! Anne Leslie-Bini International Development Leader Antoine Bourdais Director, Banking & Insurance Division Phone : +33 (0)