Deloitte Banking Union Centre in Frankfurt (BUCF)

The Banking Union initiative is Europe’s most ambitious integration project since the creation of the euro. It represents a fundamental innovation in supervision of financial services with significant consequences for the structure of the banking sector in the Eurozone and beyond, affecting business models and strategies. In this context, the Single Supervisory Mechanism (SSM), led by the European Central Bank (ECB) and based in Frankfurt has become a key player shaping the transformation of financial services in Europe.

For this reason, Deloitte established the Banking Union Centre in Frankfurt (BUCF), a powerful pan-European resource to meet clients´ need and requirements. Through the lens of the Banking Union, the BUCF is responsible for:

• Proactively identifying challenges facing banks in scope for the SSM and providing direct support to their C-suite.
• Acting as a catalyst for pooling Deloitte’s capabilities across the SSM region. The BUCF provides a single point of contact for the cross-border support that our internationally active clients require.
• Channeling and sharing insights from Deloitte professionals into key issues facing senior-level decision makers within banks.
• Supporting and extending Deloitte’s existing strong relationships with the ECB/SSM and national supervisors.

The BUCF brings together a multidisciplinary team of experienced senior professionals from Deloitte Member Firms in the eurozone, the UK and beyond

BCBS 239 Benchmark Survey 2024

The BCBS 239 Benchmark Survey 2024 offers a detailed analysis of how banks are addressing the challenges of risk data aggregation and reporting. The survey captures responses from over 20 banks across various jurisdictions and business models, predominantly representing large, multi-national banking groups. Approximately 60% of the participating banks are headquartered in the European Union, with the remainder comprising global banks from the US, the UK, and Asia with significant European operations.

The survey identifies several critical areas where banks are focusing their efforts to comply with BCBS 239 principles:

1. Supervisory Focus: Governance, management body oversight, and validation of BCBS 239 compliance remain critical areas of supervisory focus. The ECB expects banks to allocate necessary resources and senior management attention to risk data aggregation and reporting.
2. Implementation & Remediation: Banks are planning around three years for remediation efforts, with high-severity findings requiring large-scale projects. Some banks have embarked on extensive extension and remediation programs as a result of on-site inspections.
3. Data Lineage: 69% of banks plan to implement data lineage from the front office to the reporting layer, and 67% also plan to include subsidiaries.
4. Data Risk: While 72% of respondents have defined a risk appetite for data quality, only 17% have operationalized this so far. Effective data risk management is still evolving but is essential for meeting regulatory expectations.
5. Implementation Benefits: Although 68% of banks expect more effective business steering from implementing BCBS 239 principles, only 21% have achieved this so far. This highlights the ongoing challenges and the need for continued focus on achieving tangible benefits from these investments.

The survey also sheds light on the challenges banks face in implementing BCBS 239 principles. These include the complexity of data architecture, the need for robust data governance frameworks, and the importance of timely and accurate risk reporting. Banks are encouraged to move beyond a compliance mindset and invest in enhancing their data management practices to realize the full benefits of BCBS 239.

For a detailed analysis and more insights, download the full BCBS 239 benchmark survey report.

Connected with the Deloitte EMEA Centre For Regulatory Strategy

The BUCF collaborates closely with the EMEA Centre for Regulatory Strategy (ECRS). Based in London and with a satellite presence in Frankfurt, the ECRS leverages regulatory specialists from Deloitte practices to monitor regulatory developments and provide an expert, objective perspective on opportunities and challenges for financial institutions.