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Reporting requirements under STE and CoRep.
Benefits
CHALLENGE
The regulatory requirements for IRRBB as part of supervisory reporting requirements (STE & CoRep) require institutions to prepare interest rate risks in the banking book in a consistent and detailed manner. Standardized templates and granular data requirements present institutions with significant challenges in data collection, aggregation, and validation. In addition to technical implementation within the IT architecture, coordination between risk management, regulatory reporting, and specialist departments is becoming increasingly important. Incorrect or incomplete reports may result in supervisory inquiries and additional capital requirements. The close integration of risk management and regulatory reporting therefore highlights the growing importance of an integrated and audit-proof reporting process in the context of IRRBB.
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