Project Focus
Our company has taken on the exciting task of further developing and maintaining the AnaCredit reporting for over 800 German banks.This project involves the ongoing adjustment and enhancement of reporting systems to align with the latest mandates from the European Central Bank (ECB), ensuring both error-free data transmission and the accuracy of the data itself. Our efforts directly support cooperative banks in meeting their reporting obligations with precision and effectiveness.
AnaCredit stands for "Analytical Credit Datasets" and is a project of the European Central Bank (ECB) and the national central banks of the Eurosystem.Its purpose is to gather comprehensive data on loans within the euro area to facilitate supervision, risk assessment, and monetary policy formulation. AnaCredit is distinctive for its focus on collecting credit information at the individual borrower level rather than relying on aggregated data. This level of detail enhances the ability of central banks and supervisory authorities to assess and monitor credit risk effectively, analyze market dynamics, and uphold financial stability. AnaCredit primarily focuses on collecting data related to loans extended to businesses (corporate loans) rather than retail loans. While AnaCredit is extensive in capturing detailed information about individual borrowers and their loans, its main emphasis is on corporate lending.
Core Responsibilities
The reporting obligations for AnaCredit are set by the European Central Bank (ECB) and include detailed requirements for reporting credit data. These reporting obligations mainly affect credit institutions in the euro area as well as certain other financial institutions that provide loans to businesses. Here are some of the key aspects of the reporting obligations for AnaCredit summarized:
- Scope and granularity of data: AnaCredit requires the reporting of individual data at the borrower level, meaning information on both the borrower and the loan terms must be reported for each loan. This includes both disbursed loans and loan commitments and credit lines.
- Reporting period and frequency: The reporting period for AnaCredit aligns with calendar months, with monthly submissions covering data for the respective month and quarterly submissions encompassing data for each quarter of the year.
- Reporting thresholds: Specific thresholds for reporting credit data are set to exclude smaller loans, typically at €25,000 per borrower, aiming to alleviate the administrative burden on reporting institutions.
- Data attributes: Reports must encompass a range of attributes concerning each loan and borrower, including but not limited to the loan amount, interest rate, duration, loan purpose, collateral, and borrower's identification information. It's worth noting that the specifics of the required information may differ depending on the observed agent level; smaller reporting agents might have fewer attribute requirements compared to larger ones.
- Accuracy and quality of data: Ensuring accuracy and reliability, reported data undergoes validation within our system and is also verified by the German national bank. Controls are established to allow banks to rectify any inaccuracies based on feedback provided by the German national bank.
- Data privacy: Despite the extensive data requirements, reporting institutions are obligated to adhere to data protection regulations and safeguard personal data. Additionally, there's a stringent rule prohibiting the disclosure of any information pertaining to private individuals.
Development Process
In our project for the further development and maintenance of the AnaCredit reporting, we follow the SAFe (Scaled Agile Framework) approach to ensure agile, flexible, and efficient implementation. This framework allows us to quickly respond to changes and continuously improve the quality of our work.
The weekly check-ups function as our primary means of delivering updates, enabling us to promptly adapt to any changes that arise. Nonetheless, effective coordination of these deliveries is paramount, given our integration within the broader Agile Release Train (ART) framework of SAFe, emphasizing the necessity of collaboration with other teams. It's worth noting that our collaboration extends to a network of over 20 teams, underscoring the importance of synchronized efforts.
Apart from our weekly check-ups, we schedule major deliveries on a quarterly basis. These deliveries undergo meticulous planning to guarantee that each version upholds the highest quality standards and aligns fully with current regulatory mandates. This structured approach allows us to implement substantial improvements and enhancements effectively, while also furnishing cooperative banks with a dependable and forward-thinking roadmap.
Being integrated into this organized framework empowers us to consistently pursue the objectives of our project and continuously refine AnaCredit reporting for cooperative banks. We firmly believe that this methodology represents the most effective approach to overcome challenges in financial reporting, enabling cooperative banks to fulfill their reporting obligations efficiently and accurately.
Management Approach
Our colleagues from Cluj engage directly with the end customer in German, effectively managing operational matters within the project. Regular communication and updates are facilitated through Microsoft Teams, ensuring a seamless exchange of information. Additionally, the project organization adopts an agile methodology, incorporating principles from both Scrum and SAFe, to promote flexibility, rapid iteration, and a collaborative approach to project management. This agile framework enables our team to respond promptly to changes and maintain a high level of efficiency throughout the project's lifecycle.
