Case Study
Capital requirements regulatory reporting for an International Banking Corporation
Transformation & Regulation | Banks | London
The Background
- The European Commission published a series of amendments to the EU Capital Requirements Regulation (CRR3) and the Capital Requirements Directive (CRD VI), which our Tier 1 Global Banking Client is required to be complaint with by January 2025
- NextWave was engaged to lead and perform the regulatory analysis and execution of resulting changes alongside assisting in Project Management activities
The Challenge
- There was a significant number of changes at a sub article level (over 1,000) which required extensive analysis and review to ensure that articles were understood for relevance to each in-scope entity
- Article 21c (CRD VI) in its current form is open to interpretation and could lead to significant changes for the Tier 1 client
- This has required NextWave to lead pre-assessment and monitoring workshops with senior stakeholders before the final version is published
The Approach
- NextWave began by diligently reviewing the draft versions of the regulation and directive
- A traceability report was produced which highlighted all fundamental changes and impact areas at article level
- A gap analysis exercise is currently being performed and led by NextWave with SMEs to determine which gaps have been identified based on current processes, including assigning owners and dates to ensure accountability
- Workshops are being set up and held with each business area to ensure seamless handover of activities/processes required to close the gaps identified, which leads to conformance with the regulation/directive
- The team is also working closely with Project Management on budgeting and overall project plans to ensure seamless delivery ahead of the conformance date
The Impact
- The NextWave team started analysis based on the draft version to ensure adequate time to allow for implementation requirements before the regulation conformance date
- Successful initial analysis and a traceability report were completed and produced, highlighting key changes to each in-scope entity
- Gap analysis currently ongoing and execution pending outcome
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