OLIVER GATZKE IN CONVERSATION
THE TRANSPARENT Bank.
The regulatory requirements for banks tightened substantially in the wake of the financial crisis. What does this mean for the management of our Bank?
Oliver Gatzke: One main difference is that we no longer look at and manage income, costs, risks, liquidity and capital separately from each other. Now there is an integrated performance and risk management approach. We have a uniform view on all financial, risk and business data. Although this entails considerable effort, it also results in significantly greater transparency. We thus meet our own management requirements as well as those of national and European regulatory authorities. This is designed to avoid a repeat of what happened during the financial markets crisis, when the financial institutions under stress conditions were not always able to manage their risk exposures appropriately.
What does this management approach mean specifically?
Oliver Gatzke: We work on the basis of the principle of a ‘transparent bank’. This means that we meet the management requirements and the many different regulatory requirements of the European Central Bank and the national regulatory authorities from a single, central data platform. This is a key point, as it allows us to manage all processes from a single source. This way of working combines the entire IT with the strategic management, the business presentation, the accounting and reporting of our Bank. What this means in practical terms is that we are able to obtain financial and risk figures, for example on equity, liquidity or asset quality, virtually in real time and in many cases to pass them on to the management team and the regulatory authorities as part of an automated process, with speed and transparency. < /p>
Do the changes in bank management provide opportunities for our Company?
Oliver Gatzke: Yes, because we will not only become more transparent, but also faster. Also, this integrated view provides a substantially better basis for making decisions. This means that it contributes to solutions that are viable in the long term as well as being forward-looking.
Why is data procurement and data preparation in the banking business, in particular, so complex?
Oliver Gatzke: The complexity is due to the fact that banks have their eye on three control sets. First, the external accounting data for the balance sheet and preparation of the income statement. Secondly, we report in depth on the business areas, client relationships and individual transactions managed by internal accounting. And finally, there is the supervisory law view of risk and, in tandem with this, the liquidity and capital position. Data from all control sets needs to be brought together. This is most successful if all control sets are fed from the same data platform, as is the case with our Company.