ANACREDIT DUBLIN

PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENTS

FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

PROJECT NAME: ANACREDIT DUBLIN

TEAM: GROUP FINANCE CHANGE - LOCAL REGULATORY REPORTING

SUBMITTED BY
ADITYA SOOD
PRN: 17020441020
FINANCE CORE (C-03)
BATCH: 2017-19

UNDER THE GUIDANCE OF

PROFESSOR VIVEK DIVEKAR (PROJECT GUIDE)
MR. LALIT ASHOK VAZIRANI (PROJECT MANAGER)

DURATION
MAY 2018 to JUNE 2018

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CERTIFICATE

This is to certify that Mr. Aditya Sood (PRN 17020441020) has successfully completed his
summer internship project report under my guidance.

Signature:

Professor Vivek Divekar

Date:

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DECLARATION

I hereby declare that the project entitled “Anacredit Dublin” is my original work during my
summer internship with Credit Suisse. It has not formed the basis for the award of any degree,
fellowship or any other similar title and it is merely for the partial fulfillment of the Masters of
Business Administration course.

Signature:

Aditya Sood

Symbiosis Institute of Management Studies

Date:

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INTERNSHIP COMPLETION CERTIFICATE

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ACKNOWLEDGEMENT

I would take this opportunity to extend my sincere gratitude towards Credit Suisse for giving
me the opportunity to be a part of their summer internship program.

I would also like to thank Mr. Lalit Ashok Vazirani, my Project Manager and mentor at Credit
Suisse for vesting his trust in me for the delivery of a critical and time bound project. Working
with him and his team under constant guidance and support was a learning experience and I
am sure that the same will help me in all facets of life. Heartiest thanks to everyone in the
Finance Change team who have supported and encouraged me during the course of internship
and made it a memorable journey.

My sincere regards towards my faculty guide Professor Vivek Divekar. I would have not been
able to complete this project without his constant guidance and support. His teachings in the
classroom hugely helped me during my internship in applying the knowledge I gained from
him in the project assigned to me. He has always been approachable to clear all sorts of queries
and doubts.

Lastly, I would like to thank my institute, Symbiosis Institute of Management Studies and the
placements team for providing me with the platform where I got the opportunity to prove my
competence for internship at Credit Suisse.

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Contents

1. BACKGROUND ..................................................................................................................................... 8
2. IMPLEMENTATION .............................................................................................................................. 9
3. ROLES & RESPONSIBILITIES .............................................................................................................. 10
4. DELIVERABLES .................................................................................................................................. 10
5. UNDERSTANDING OF PHASE 1- Counterparty Data Reporting .......................................................... 11
6. ATTRIBUTES OF COUNTERPARTIES: ................................................................................................ 13
7. ANACREDIT DATA MODEL: ............................................................................................................... 13
8. METHODOLOGY ................................................................................................................................ 14
9. LEARNINGSAND TAKEAWAY ............................................................................................................ 18
10. GLOSSARY ......................................................................................................................................... 20

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CREDIT SUISSE is a multinational investment bank founded in 1856 by business leader Alfred
Escher. It was previously known as Schweizerische Kreditanstalt. The purpose of the bank was
to finance the railroad network. It has its headquarters based in Zurich, Switzerland. It
operates in around 50 nations with a workforce of around 47,000 employees. It has three
regionally focused divisions: Swiss Universal Bank, International Wealth Management and Asia
Pacific. These are supported by two other divisions focusing on investment banking: Global
Markets and Investment Banking & Capital Markets.

Credit Suisse is the second largest bank in Switzerland. It is part of the Wall Street’s “Bulge
Bracket” for providing services in private banking, investment banking, asset management and
shared services. Bulge Bracket includes world’s nine largest and most profitable banks.

Credit Suisse is well known for its strict compliance practices and client data secrecy. It also
provides retail banking services. It is governed by a dedicated Board comprising of Directors.
Apart from that, organization is monitored by independent auditors to safeguard the interest
of its shareholders.

In India Credit Suisse operates primarily in Pune and Mumbai. Pune unit is the Business
Development Center as it is a facilitator to all then global branches of the bank whereas
Mumbai unit deals in private banking and investment banking.

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1. BACKGROUND

AnaCredit stands for Analytical Credit Datasets. In May 2016, the Governing Council of the
European Central Bank approved Regulation (EU) 2016/13 on the collection of granular credit
data and credit risk data. This new data initiative, known as Analytical Credit Datasets
(AnaCredit), comprises the collection of granular credit data based on harmonized ECB
statistical reporting requirements. The objective is to establish a common granular credit
database shared between the Euro zone members, comprising input data for all Euro area
member states.

Granular credit data can be widely used to serve a number of different functions. The
AnaCredit data will support the ECB and the Central Bank in performing their central banking
and supervisory functions including monetary policy analysis and operations, risk
management, financial stability surveillance, statistics, macro prudential policy and research.

All Irish resident credit institutions are subject to the reporting requirements laid out in the
AnaCredit Regulation.

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2. IMPLEMENTATION

The AnaCredit Project in Ireland is being implemented in two phases:

 Phase 1: Counterparty Data Reporting

Key Project Dates

Activity Deadline
Test window for reporting agents 29 September 2017
Live reporting system go-live 31 October 2017
First reporting deadline 31 January 2018

 Phase 2: Credit Data Reporting

Key Project Dates

Activity Deadline
First reporting deadline 19 October 2018 for ACR1B

26 October 2018 for ACR2B

ACR1B comprises of the following:

Dataset Frequency
Instrument
Financial
Counterparty-instrument
Joint liabilities
Monthly
Protection received
Instrument-protection received
Counterparty risk data
Counterparty default data

ACR2B comprises of the following:

Dataset Frequency
Accounting Quarterly

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3. ROLES & RESPONSIBILITIES

 Understand Phase 1 requirements (related to counterparty data attribute

requirements)
 Assist with preparation of the counterparty data attributes report for months of Apr-18
and May-18
 Identify errors in reports and correct these
 Maintain traceability of sources as well as logic of data attributes
 Co-ordinate / follow up with internal teams and obtain data in a timely manner
 Obtain validation from senior team members on reports prepared

4. DELIVERABLES

 Counterparty data attributes report for months of Apr-18 and May-18

 Process Flow / Data Flow Diagram
 Traceability Document (containing Source / Logic) of Data Attributes
 List of Queries
 Internship Report

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5. UNDERSTANDING OF PHASE 1- Counterparty Data Reporting

The reporting of data by the reporting agents has to be provided as per the guidelines set by
the Central Bank of Ireland.
Counterparty Data Reporting – first report due on year end data as at 31/12/2017 due 31/1/2018
then April 2018 and monthly thereafter.

Phase 1 AnaCredit templates: In scope are stated below:

Return Dataset Code Frequency Deadline Reporting First

Template Population reporting
date
Monthly 31/12/2017
ACPRD Counterparty (Quarterly All Credit deadline
CPRD T+7
Reference for Credit Institutions 31/1/2018
Unions)

Reporting Schedule Table

Monthly Counterparty Reference Data Reporting Schedule

Reference date Counterparty data due date

31 Dec 2017 31 Jan 2018

30 Apr 2018 09 May 2018
31 May 2018 11 Jun 2018
30 Jun 2018 10 Jul 2018*
* Monthly thereafter

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Reporting Flow Chart-

Counterparty attribute to
be reported

Is the attribute required?

No Not Required
Yes

Go for applicability check

Is the attribute applicable? No Not Applicable

Yes

Does reporting agent have

attribute information? Yes Report the attribute in line
with data specification
No

Sourcing Gap

Obtain attributes and

prepare report

Validate report

Submit report

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6. ATTRIBUTES OF COUNTERPARTIES:

Attributes.xlsx

7. ANACREDIT DATA MODEL:

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8. METHODOLOGY

a. Understand Phase 1 requirements

The purpose of understanding the Phase 1 requirements was met through various
sources of information as mentioned:

 I read through the guidelines set by the Central Bank of Ireland in regards
with AnaCredit Dublin reporting. The same are available as public
information

central-bank-of-irela
nd-anacredit-notes-on-compilation.pdf

 I also went through the Business Requirement Document, created by my

mentor. It lays down the requirements in regards with changes that are
needed by users

 My mentor also conducted Knowledge Sharing sessions with me during

which he used to give me insight on the project, tasks I had to undertake and
approach for the same

 I also accessed Credit Suisse intranet to get clarity on certain terms related
to the project

b. Assist with preparation of the counterparty data attributes report for months of
Apr-18 and May-18

Before I started to assist with preparation of April 2018 counterparty data report, I
was given a task of updating the attributes of counterparties of December 2017 for
which the report was already submitted in January 2018. This task included
following steps:

 Use the relevant counterparty identifiers and check for any changes in the
addresses of the counterparties and update the same

 For the purpose of updating addresses of counterparties that were legal

entities, I used to refer to database available publicly on the website of
Global Legal Entity Identifier Foundation

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 For the counterparties that were not legal entities (that were branches), I
referred the data made available by the Company Registration Office of the
country where the counterparty was incorporated/registered

The same task was repeated for the counterparties that had exposure with the Bank
in the months of January, February and March 2018.

Once I was clear about the tasks that I had to undertake, I extracted the data of new
counterparties that had exposure with the Bank in the months of April and May
2018. For the purpose of extracting data, I had access to the General Ledger, Risks
and Counterparty Management systems.
Once the counterparties were identified, the report was populated with attributes in
the following manner:

I. Use internally assigned identifier (for each counterparty) in the upstream

Credit Suisse system and gather data related to legal entity identifier and
roles and populate the same
II. In the next step, legal entity identifier is used to populate attributes such as
legal address and legal form through Global Legal Entity Identifier
Foundation
III. Further, data extracted from the internal systems is used to populate the
attributes such as economic activity, protection provider role and
institutional sector

Sample Return.xlsx

c. Identify errors in reports and correct these

After populating the roles for counterparties of April 2018 month, my task was to
review the December 2017 report to rectify the different roles (such as Head Office
Undertaking, protection provider etc.) as they were incorrectly reported earlier for a
few counterparties, due to lack of clarity on guidelines.

d. Maintain traceability of sources as well as logic of data attributes

To maintain traceability of sources, following actions were taken by me:

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 Maintain a “Remarks” column with appropriate comments for the

counterparties for which there was either an update or a rectification

 Maintain a list of queries for the concepts on which I needed clarity and raise
the same during knowledge sharing sessions with my mentor

 During the process I also prepared couple of flow charts that helped me
segregate the crucial data for ease of access while reporting the attributes of
counterparties

List of Queries
(sample).xlsx

e. Co-ordinate / follow up with internal teams and obtain data in a timely manner

Once all the available attributes were populated, sourcing gaps were identified. To
plug these sourcing gaps, different teams were contacted. For example:

 For legal proceedings- We contacted the Legal team in Dublin

 For enterprise size- We contacted the Credit Risk Management team

Once all sourcing gaps were addressed, the return was considered to be complete.
Then this return was loaded in the testing environment provided by the Regulator.
This was done to check if there was a requirement to make any further changes to
the return basis any validation errors that may be encountered while loading the
report in the testing environment.

f. Obtain validation from senior team members on reports prepared

Validation was obtained from the senior team members in the reports prepared in
four steps.

I. Set-up meetings with my Mentor regularly to get the reports reviewed and
address review comments

II. Attend scrum meetings and get the tasks reviewed by my Manager on a
daily basis

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III. Attend analytical review meetings with Statistical Reporting team and
maintain an action tracker to assist them with the modifications required by
them

IV. Attend validation meetings with Finance team in Dublin

Note: After it was confirmed in the validation meeting with the Finance team in Dublin that the
report was complete and accurate, it was submitted to the Regulator.

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9. LEARNINGSAND TAKEAWAY

a. Team work and ownership

During the course of my internship I received constant guidance and support from
my team. My Manager assigned me my Mentor under whom I had to work on the
project. I got the opportunities to liaise with different teams at different locations
and through this experience I learnt value and importance of team work. Key
takeaway while working in a team was to learn about allocation of roles and
importance of making initiative towards taking up responsibilities.

b. Approach towards a task

The approach used by my team to acquaint me with the project held significant
importance as it helped me learn about the project in an efficient manner and start
working on it. I was guided about the project requirements and provided with
resources I needed to carry out my tasks.

c. Opportunities to learn

The curriculum set by Credit Suisse was of huge value addition. As per the
curriculum:

 All the interns had to approach Directors of different departments and

setup meetings with them. The agenda of these meetings was to get
acquainted with the functions of various departments in Credit Suisse

 We were required to attend video conference sessions with Managing

Directors, wherein we got the opportunity to interact with them and ask
them our doubts to get a better understanding regarding the functions of an
investment bank

These sessions helped me hugely to enhance my soft skills and helped me improve
my communication skills as well. One of the major takeaway from these meetings
was a knowledge transfer session with one of the senior managers who told us
about F2B flow i.e., Front to Back Flow in an investment bank.

I also got the opportunity to interact with all the members of my team and know
about their experiences in the corporate world. This will help hugely me as I will
start my corporate journey soon.

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d. Understanding Finance Change better

With each passing day I got opportunities to interact with different people and as
they shared their experiences in Credit Suisse, I was getting more clarity on
different projects in Finance Change. I am of understanding that Finance Change is
a facilitator to all the crucial departments of Credit Suisse as it responds to any
significant changes that happen during the course of time.

e. Value addition through Philanthropy

As a part of this program, we had to participate in a philanthropic activity organized

by Credit Suisse. The agenda of the event was to make sure that we maintain a
connection with that part of the society that is not as privileged as we are. The
activity that we took up was to pack school kits for underprivileged children.

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10. GLOSSARY

 Legal Entity: Legal entity is defined as non-person entity. It has a legal identifier.
Following are the examples of legal entity:

− All companies (as they are recognized by relevant company laws)

− Bodies created by law in the form of statutes
− Local authorities (such as county councils) and
− Corporations sole (such as offices held by Attorney General and
government Minister)

 Sourcing Gap: It refers to the lack or absence of particular data in the Credit Suisse
systems. Whenever the same is encountered with, efforts are made to extract the
missing information.

 Reporting Agent: Reporting agent means a legal entity that is resident in a Reporting
Member State and that is subject to the ECB's reporting requirements pursuant to
this Regulation.

 ACPRD: AnaCredit Counterparty Reference Data

 Scrum meeting: In Scrum, on each day of a sprint, the team holds a daily scrum
meeting called the ‘daily scrum’. Meetings are typically held in the same location
and at the same time each day. Ideally, a daily scrum meeting is held in the
morning, as it helps set the context for the coming day's work. These scrum
meetings are strictly time-boxed to 15 minutes. This keeps the discussion brisk but
relevant. During the daily scrum, each team member answers the following three
questions:

1. What did you do yesterday?

2. What will you do today?
3. Are there any impediments in your way?

By focusing on what each person accomplished yesterday and will accomplish

today, the team gains an excellent understanding of what work has been done and
what work remains.

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