What is BIRD?
The Banks’ Integrated Reporting Dictionary (BIRD) is a collaborative initiative relevant to banks operating in Europe, designed to reduce the reporting burden, improve data quality, and foster cooperation in regulatory reporting. It provides an integrated dictionary with redundancy-free input, where reporting concepts are identified and described only once. This approach simplifies how banks determine source data and process it to meet regulatory requirements set by European authorities.
BIRD offers guidance on transforming data extracted from internal systems into regulatory reports by providing well-defined transformation rules and an integrated data model. While adoption is voluntary, BIRD serves as a "public good," freely available to banks and software vendors. It offers documentation and best practices for interpreting and implementing regulatory reporting requirements without imposing new obligations or requiring changes to banks’ internal IT systems.
Key objectives of BIRD
⇢ Enhancements and integration for better regulatory reporting:
BIRD has released updated versions of its data model and transformation rules, such as the semantic rules for FINREP reporting. These updates aim to improve coverage, transparency, and alignment with reporting requirements like IReF. This includes extending the BIRD model to cover additional templates and refining shared naming conventions to harmonize with IReF's framework.
⇢ Collaborative development across banks:
BIRD is developed collaboratively by the European System of Central Banks (ESCB), commercial banks, and IT vendors. It provides clear data lineage and supports harmonized reporting structures while remaining voluntary and freely available.
• IReF collaboration:
The alignment between BIRD and IReF( Integrated Reporting Framework) focuses on creating a shared data dictionary and logical data model. Testing of IReF's draft data model is underway, with BIRD contributing its methodologies to ensure seamless integration. The collaboration is designed to reduce redundancies, improve efficiency, and simplify compliance for banks operating across borders.
• JBRC integration:
BIRD is seen as a foundational tool for establishing a common "input approach" in regulatory reporting under the Joint Bank Reporting Committee (JBRC). This would help banks and regulators adopt a standardized process from data collection to reporting. BIRD's role includes ensuring timely updates and addressing technical challenges in collaboration with JBRC frameworks.
Wolters Kluwer FRR is a contributor to the BIRD project.
Benefits of BIRD
⇢ Efficiency in reporting:
Banks save time and effort in analyzing and complying with new reporting requirements, reducing costs and increasing operational efficiency.
⇢ Standardized transformation rules:
BIRD provides a clear and uniform interpretation of regulations, helping banks achieve greater clarity and compliance with reporting obligations.
⇢ Improved data management:
Banks gain a better understanding and control over their data, enabling them to manage and utilize it more effectively. Collaboration and alignment: BIRD encourages cooperation between banks and authorities, ensuring that reporting practices are practical.