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Harmonisation and data requirements

Harmonisation and data requirements

The ECB is looking for key characteristics with regard to data.

Sofia Pignatelli

Senior Manager, KPMG ECB Office

KPMG in Germany


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Another year on into ECB supervision and the Supervisor has once again listed harmonisation as one of its priorities for the year. The population of SSM banks is highly heterogeneous, geographically, in terms of size, composition, organisation or activities led. To drive harmonisation, the ECB will compare banks and their data across a number of peer groups that the supervisor has established based on bank size and business model.

Along with more harmonisation, we have seen a shift towards data-based reporting and supervision. With access to bank data across the Eurozone, the ECB can compare banks at all levels of detail. Banks can be certain that the quantity of both the regular information streams and ad-hoc requests will increase. Key features that the ECB are looking for with regard to data include:

  • ready access to complete, high quality, reliable and timely data;
  • comparable data across firms, to support system wide and peer group analysis – including the construction of relevant peer groups on a cross border basis, and to streamline analysis of individual firms;
  • the ability to perform ‘deep dives’ on areas of concern at an individual bank, peer group or banking sector level; and
  • the ability to deploy advanced analytical techniques to detect trends and pin point areas of concern, to enable supervisors to be forward looking and proactive.

Peer group analysis by the ECB may lead to extraordinary results and comparisons – from horizontal analysis (related with profitability, for instance) to ongoing supervisory work (especially SREP). With the level of data and detail available to the ECB, and especially in light of their supervisory lens across the banking sector as a whole, they will have ample opportunity to generate novel insights that may lead to an increase in supervisory demands.

With the level of supervisory demands increasing, it is in the interest of every European bank to have a clear view of where they sit among their peers. Benchmarking studies offer insights into this, which is why KPMG’s ECB office runs a number of various benchmark studies (e.g., SREP and leveraged finance, among others), but where the information is limited or in some cases confidential, these studies offer limited insights and visibility across peer groups, let alone a comprehensive view across the region or by country.

KPMG Peer Bank removes the complexity of benchmarking and peer analysis using the same indicators being considered by the European supervisors, and over 100 additional ratios to allow deep dive peer analysis. With KPMG Peer Bank, a firm can more easily answer the question of where it stands among its peers, and identify triggers and drivers that will be helpful to understand ahead of its conversations with the ECB.

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