CRR 2 implementation

SUMMARY

Avantage Reply assisted a well-known Private Bank in the Eurozone in the transition to the new regulatory reporting requirements into force from June 2021, i.e. Capital Requirements Regulation 2 / CRR 2. In particular, the reporting function needed support on the following topics:

• Large Exposures (LE)
• Fundamental Review of the Trading Book (FRTB)
• Standardised Approach to Counterparty Credit Risk (SA-CCR)

CUSTOMER GOALS

The client was looking for additional support in order to implement regulatory changes required by CRR 2.

CHALLENGES

The project involved a vast scope of regulatory topics and activities performed by the institution. As a result, the primary challenge was to understand and process a great amount of regulatory and internal data in order to arrive at meaningful conclusions. Moreover, due to regulatory deadlines, the team had to provide a clear roadmap with action plan to meet regulatory requirements.

SOLUTION

Avantage Reply conducted in depth analysis and delivered a number of solutions, primarily focused on the following:

• Summary note highlighting the impacts of the new regulatory requirements
• Mapping of potential gaps to be closed, taking into account current or future projects
• Express business requirements to IT - contribution to the roadmap that considered business dependencies and constraints, e.g. availability during production periods
• Contribution to the execution of User Acceptance Tests
• Monitoring and communication on the progress of the project