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This regulatory reporting brief covers the evolution and challenges of the Complex Institution Liquidity Monitoring Report (FR 2052a).
In brief
- In recent years, firms had to adapt to changes in the FR 2052a report by reevaluating their operating model and report ownership.
- We have observed heightened regulatory focus on both the qualitative and quantitative criteria for the FR 2052a report.
- This article covers the challenges from the 5G-to-6G implementation, key capabilities and operating models, and regulatory focus areas.
The regulatory reporting landscape continues to face challenges as a result of new and evolving regulations and reporting requirements. The Complex Institution Liquidity Monitoring Report (FR 2052a) and its predecessor reports have been capturing critical liquidity data for approximately 15 years. Because 50% to 60% of the report has changed over time, firms that navigated challenges with the displaced fifth-generation (5G) rule again had to revisit the FR 2052a report for the sixth-generation (6G) change implementation. The changes cast a renewed spotlight on manual processes and sourcing challenges and emphasized the need to automate and integrate data and enhance controls. In addition, recent banking volatility has caused an increase in regulatory scrutiny and horizontal examinations.
Over the last several years, firms have heavily invested in FR 2052a data infrastructure, systems and process improvements to deliver this report accurately and efficiently to regulators, as many institutions are required to file on a daily basis. In this brief, we discuss:
- Evolution and challenges — insight into the 5G-to-6G transition of the FR 2052a report (e.g., new requirements, implementation), including the obstacles firms face and ways to address them
- Key capabilities and operating model — industry changes in organizational structure across ownership, roles and responsibilities, governance and critical activities for FR 2052a report production, quality assurance, issue management and training programs
- Regulatory focus areas — horizontal examination observations and common regulatory feedback across qualitative and quantitative areas
Download the full article on: FR 2052a: report evolution and key challenges
Summary
When customer data is reliable and up to date, it opens up endless business opportunities. Getting there can be challenging, but a fit-for-purpose remediation solution and tailored data governance transformation go a long way toward making it a reality. Executives no longer need to shudder at the thought of their customer data quality: The road to improvement has been paved.
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