Brexit
Fit for the German banking landscape?


In the course of transferring their businesses to Germany, we support banks in complying with European (CRR/CRD) and German legislation and regulations – in particular the German Banking Act (KWG) and the Minimum Requirements for Risk Management (MaRisk) – in matters of data and IT, supervisory law and reporting systems, risk management, accounting and reporting, and anti-money laundering. For hundreds of banks msgGillardon AG is the trusted supplier for solid software solutions and high end business consulting.

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In a referendum on 23 June 2016, a majority of voters in the United Kingdom elected to leave the European Union. As a result, in order to continue offering products and services such as deposit and credit transactions in the European Union, banks active in the United Kingdom will be required as of March 2019 to maintain legally independent subsidiaries based in an EU state.
Information Deutsche Bundesbank
The requirements of the ECB are highly demanding, and only very limited time remains. Although the ECB has indicated that transition periods will be granted, the countdown has started for financial institutions. They must develop scenarios that will enable them to successfully continue their transactions with EU countries. msgGillardon supports and advises international banks with a wealth of technical expertise for meeting these challenges, and makes them fit for the German banking landscape.

Main Goals

  • Understand the specific German regulators‘ requirements for IT systems
  • Implement an efficient and secure IT environment which also supports your future growth


Your Challenges

IT: Compatible, scalable and proven software is a key for your German hub. Depending on your Brexit strategy, you need the flexibility to either connect German systems to those of your host country or to run the systems on a stand-alone basis. Specific German regulatory requirements in terms of IT handling need to be met as well (MaRisk, BAIT).

Data: You need solid processes and systems for data storage and data analysis as a basis for client handling, internal margin calculations and external reporting. Data storage and processing need to fulfil specific German and European regulatory requirements as well, specifically in terms of data protection (EU DSGVO) and risk data aggregation (BCBS 239).


Our Solution

Products: We offer highly integrable and scalable software. Our solutions cover margin calculations, ALM, risk and liquidity management tools as well as regulatory reporting engines. For these products we are very proud to acknowledge a high market coverage for the German market. We are the trusted supplier for a wide range of banks in Germany.

Integration Services: For all these products our consultants for Business IT Alignment support the integration of software into your specific IT environment and make sure that you are happy with your customised solution. With our Centers of Competence we also make sure that all our products take the latest technical and regulatory requirements into account.

Main Goals

  • Identify and understand specific German regulatory requirements and reportings
  • Reflect these specific German requirements within your written procedures and processes


Your Challenges

Capital Requirements, ICAAP and ILAAP : You need customised solutions for capital, risk and liquidity management. Major exposure and concentration risks need to be handled efficiently.

Processes and Controls: All your processes and controls have to meet specific, strict German requirements (MaRisk).

Competencies and Skills: Board members and employees need to understand the specific German regulatory requirements.

Specific German Reporting: For the specific German regulatory reporting (Bista, FinaRisikoV, etc.) you will need adequate tools and technical skills.


Our Solution

Products : We are the key provider of regulatory reporting solutions (CoRep, FinRep, AnaCredit) in Germany. Our BAIS software is the first choice for many banks in Germany. Due to our combined technical and functional competencies we have a very deep understanding of regulatory requirements and reporting.

Business Consulting: Our Center of Competence for Regulatory Reporting and Compliance will guide you through the German and European regulatory requirements. Our long-standing relationship with the German regulator and the German Association of Foreign Banks in Germany is your safe harbour for correct procedures here in Germany.

Main Goals

  • Understand the new business model and the German market and its customers
  • Re-calibrate your current ICAAP and ILAAP process to reflect the new situation


Your Challenges

Internal Capital Adequacy Assessment Process: Internal capital adequacy is an ongoing constant process that needs to be aligned to your strategy and the operating model of your new hub in Germany.

Internal Liquidity Adequacy Assessment Process: In addition to ICAAP for your new German hub, you need a customised ILAAP that is aligned to the parent company and the group.

Internal Models and Risk Indicators: If you use internal models, you need to re-calibrate your models to reflect the new business model and the specific German market and regulations.

Supervisory Review and Evaluation Process: ICAAP and ILAAP need to be aligned with SREP requirements to avoid capital add-ons.


Our Solution

Products: Our Capital, Risk and Liquidity planning tools make it easy to monitor and steer the most relevant risk and performance indicators. We are able to match and connect these tools with your external reporting. They have strong drill-down functions that ensure you get transparency when you need it.

Business Consulting: Our highly skilled business consultants bring in a wide range of practical experience when it comes to ICAAP, ILAAP and Pillar 1 / IRBA. We prepare banks for SREP and other audits by the regulator to make sure you get the best possible results and to support you in maintaining an excellent relationship to the regulatory authorities.

Main Goals

  • Understand the specific German accounting rules
  • Implement an easy but also scaleable solution for potential growth in the future


Your Challenges

Processual environment: For your German hub you need to consider the generally accepted principles of computer-based accounting systems (GoBS). Also, a number of specific requirements of the German Institute of Public Auditors need to be met, such as the “Generally Accepted Accounting Principles for the Use of Information Technology” (IDW RS FAIT 1), in order to acquire the auditors’ certificate.

Functional Requirements: German authorities will ask for annual tax accounts based on German local GAAP. Your host GAAP must be transformed to German GAAP, or German GAAP needs to be transformed to your host GAAP. Also, German GAAP is the basis for some specific German regulatory reporting.

Unsere Lösungen

Products: Together with our partners from the finance industry we have developed a pioneering single platform, in which we have combined various calculation engines for accounting, regulatory reporting and risk management under the one roof (EGP).

Business Consulting: Our highly skilled business consultants will support you in implementing your accounting solution or in integrating EGP into your IT environment. We will also help you when it comes to GAAP conversions or preparing reporting packages for your host country.

Main Goals

  • Understand the specific German market and its customers
  • Calibrate the current AML infrastructure for a risk based AML monitoring for the German market


Your Challenges

Knowing your new customers: When running your business in Germany, to fulfil the AML requirements you are required not only to know the exposed German persons but also to have specific insights into the German market.

Access to specific German databases: Just like every market, the German market has its own special characteristics. You thus need access to the specific databases to be able to ascertain the economic benefits.

Risk-based analysis and ongoing monitoring: You need to re-calibrate your current processes and systems for the German market situation to the required risk-based AML procedures.


Our Solution

Products: With our AML solution msg.BPC we have developed a tool to automate the monitoring and identification process for your customers. Our solution can be linked to your current databases. Detailed reports help to fulfil your documentation requirements.

Business Consulting: Our consultants will give advice to guide you through the specific requirements of the German regulator when it comes to AML. We bring in practical experience from various implementation projects for AML infrastructure.

Information

Your Brexit Challenges and

our BrexIT Solutions


Your business challenges are our business focus: Data & IT, Regulatory Compliance, Risk Management, Accounting, Anti Money Laundering.

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Alexander Nölle

Partner

+49 (0) 6196 / 7750 - 5408

SUCHE

Sparkassen-Finanzgruppe

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