What is regulatory reporting?Regulatory reporting is one of the means through which the financial insitution controlling entities analyze the financial situation of the institution.
For the banking business, the international regulatory standards are defined by the so-called Basel Committee on Banking Supervision. This standardisation body edicts guidelines on reports the banks have to provide to their supervisory body. The latest set of guidelines is called Basel II and is currently enforced by the supervisory bodies. The general guidelines are adapted to each countries reality via Country Specific Adjustments.
For the insurrance business, the Solvency accord is giving similar guidelines.
Generally these guidelines are oriented around:
- ensuring sound financial practices
- ensuring the level of capital of the financial institutions covers the level of risk taken including correlation between various kinds of risk.