Presentation on regulatory (Basel) reporting

Regulatory Reporting

1. Regulatory Reporting - AN Overview

2. Regulatory Reporting is the submission of reports or data to regulators to keep the bank's financial health in check and ascertain the level of compliance with regulatory policies. Objectives of Regulatory Reporting Ascertain the banks financial health Ensure compliance with regulatory policies Avoid large bailouts Increase transparency and accountability Potentially avoid another financial crisis Improve consumer protection Major Report Types Capital Reports: Adequacy of the bank's own funds Liquidity Reports: Ability of the bank to meet its obligations Statistical Reports: Other reports used by Regulator for monitoring purposes.

3. Data collected from regulatory reports  facilitate early identification of problems  that can threaten the safety and soundness of reporting institutions; ensure timely implementation of the prompt corrective action provisions required by law; and serve other legitimate supervisory purposes Regulatory Reports Capital Reports Liquidity Reports LCR (Liquidity Coverage Ratio) NSFR (Net Stable Funding Ratio) ALMM (Additional Liquidity Monitoring Metrices) CAD (Capital Adequacy) Large Exposure Leverage Ratio TLAC ( Total loss absorbing capacity)

4. The Basel Norms are issued by the Basel Committee on Banking and Supervision with the intention of strengthening the banking system by coordinating banking regulations across the globe. The BBS includes representatives from central banks and regulatory authorities of 27 countries. They've introduced three sets of regulations so far, Basel 1 (1988), Basel 2 (2004). Basel 3 (2009), with Basel 4 expected to be implemented in 2023.

5. Regulatory reporting in EU Region-Pillar 3 Category Indicator Calculation Frequency Regulatory Requirement Maintained by Bank Liquidity Reports LCR HQLA/Net Cash flows Daily Monitoring/Monthly Submission 100% NSFR ASF/RSF Daily Monitoring/Quarterly Submission 100% Liquidity Ratios Various Daily Monitoring - ALMM NA Monthly Submission - Capital Reports Total Capital Ratio (Tier 1+Tier 2 Capital)/ RWA Daily Monitoring/Quarterly Submission 8% Tier 1 Ratio (CET1+ Additional Tier one capital)/ RWA Daily Monitoring/Quarterly Submission 6% Capital Reports CET1 Ratio CET1/ RWA Daily Monitoring/Quarterly Submission 4.5% Leverage Ratio Tier 1 capital/ Average total Consolidated Asset Daily Monitoring/Quarterly Submission 3% TLAC TLAC Measure/ RWA or Total Exposure Quarterly Submission 18% of RWA, 6.75% of Total Exposure

6. Regulatory reporting in EU Region- Others