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Case Study

Pillar 3 gap analysis

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SUMMARY

The client, a major banking group specialised in the provision of online banking and trading services, was required by its national competent authority to update its Pillar 3 report for the year-end 2020. In this context, the client asked Avantage Reply to perform a gap analysis of its 2019 Pillar 3 report against regulatory requirements in order to be able to provide the national supervisor with a fully compliant 2020 Pillar 3 report.

CUSTOMER GOALS

The Bank wanted to provide the national supervisor with a 2020 Pillar 3 report that was fully compliant with regulatory requirements and best market practices.

CHALLENGES

The key challenge faced by the team was to provide the Bank with an action plan for the design and implementation of its 2020 Pillar 3 report that was regulatory compliant, but more importantly, that was pragmatic and easy to be implemented by the Bank within the allocated timeline.

SOLUTION

In order to deliver on the objectives outlined in the customer goals section, Avantage Reply put together a team of CRR and Pillar 3 experts, which conducted the following tasks:

Performed a gap analysis of the Bank’s 2019 Pillar 3 report against the following key regulations:
  • Regulation EU 575/2013 (also known as “Capital Requirements Regulation” or “CRR”)
  • EBA guidelines 2016/11 on disclosure requirements

    • For each of the identified gap, the team provided the Bank with an action plan that was regulatory compliant, but also pragmatic and easy to be implement.