FRSGlobal : Risk Analysis and Regulatory Reporting

FRSGlobal in Bulgaria

The economic development of the country depended much more on attracting domestic resources, increase household thrift, decreased consumption and sustained confidence in banks to deposit money despite falling interest rates.

The primary focus for the Bulgarian National Bank (BNB) in the first half of 2010 was the new EU supervisory architecture. BNB was among the active participants in establishing the European Systemic Risk Board which supervises banking operations, insurance securities, pensions and amending the new supervisory framework.

BNB also formulated monetary and banking policy and helped solve central banking issues.

BNB also expanded and deepened international cooperation and rendered technical assistance to neighbouring central banks for the overall growth of the economy.

Regulatory Environment — Bulgaria

Financial	Prudential	Transactional
Balance sheet reporting	Capital adequacy reporting	Derivative statements
Party disclosures	Liquidity reporting	Leasing

Financial

The financial reporting framework in Bulgaria is set as per the International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). Guidelines for financial reporting are implemented on consolidated financial reporting framework (FINREP) developed by the European Banking Authority (EBA).

Balance sheet reporting
Balance sheet reporting provides information on financial statements positions and is required by the Bulgarian National Bank on a monthly and quarterly basis. Under this type of reporting all banks in Bulgaria are required to submit the reports on position of assets and liabilities, income statement, etc.

Party disclosures
Banks need to submit information to the Bulgarian National Bank regarding party exposures in current accounts, term loans, financial leases, consumer credit, mortgage loans, trading securities, investment securities, etc.

Prudential

Capital adequacy reporting
The Bulgarian National Bank follows the Basel II standards. The guidelines for capital adequacy reporting are based on the Common Reporting Framework (COREP). They provide the minimum amount, the elements and structure of credit institution’s own funds and the minimum capital requirement as well as disclosure requirements.

Liquidity reporting
Banks need to report liquid assets, maturity structure of assets, liabilities and off-balance sheet items, and liquidity ratio to the Bulgarian National Bank.

Transactional

Derivative statements
Banks in Bulgaria need to report derivatives held for trading, hedge accounting, gains (losses) from hedge accounting and analysis of equity to the Bulgarian National Bank on periodic basis.

Leasing
Leasing operations carried out by banks in Bulgaria need to be reported to the Bulgarian National Bank on a quarterly basis.

So how can we help you? Wolters Kluwer Financial Services FRSGlobal provides regulatory reporting solutions throughout the world for banks, insurance companies, and other financial institutions. By leveraging a global data model (DataFoundation), a standardised integral development environment (ReportBuilder), fully integrated calculation capabilities of RiskPro and a global runtime engine for reporting (ReportGenerator), FRSGlobal can provide local reporting efficiently consistently for any jurisdiction. The main benefits of the regulatory reporting solution include: Regulatory Update Service (RUS): We are actively monitoring regulatory changes and provides updates within the product subscription Full audit trail and ability to drill down to underlying data, variance analysis etc. as part of the run-time engine Fully integrated solution for risk management and regulatory reporting - increasingly important as new global directives gravitate towards the need for these previously silo’d disciplines to converge. This means: Single source of data and data management to ensure consistency Any risk calculation results relevant for regulatory reporting are automatically taken into account into the reporting Regulatory reporting includes report level validation rules and electronic delivery where applicable Local domain expertise while at the same time global consistency