Balance Sheet Substantiation for Indian Operations of a Global Bank
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Case Study
Balance Sheet Substantiation for Indian Operations of a Global Bank
One of the leading private foreign banks has a growing retail banking presence following the acquisition of a mid-tier bank.
The business situation
- Following the acquisition of a retail-focused bank, the client needed support in substantiating the balance sheet by validating balances across the General Ledger (GL), sub-ledgers, and source system
- This required a detailed review of reconciliations, including clearing accounts, internal accounts, suspense accounts, Nostro, ATM, cash, and investment reconciliations
- The bank needed professionals with deep knowledge of banking processes, such as loans, provisioning, treasury, etc., to assess and enhance their monthly GL reconciliation process
Our team’s role
GL Reconciliation Review
Reviewing end-to-end GL reconciliation processes
Control Gap Identification
Assessing reconciliation controls and identifying control gaps
Source System Validation
Assessing GL-level reconciliation with the source system or an independent source and identifying control weaknesses
Governance Assessment
Evaluating governance structure, roles, and responsibilities
System Interface Review
Reviewing system interfaces to ensure accuracy of data flow across platforms
The value our team added
- Provided the client with a comprehensive review of the balance sheet substantiation process, identifying critical gaps in existing reconciliations and recommending targeted improvements aligned with industry best practices
- Through a deep dive review of clearing, internal, and suspense accounts, we highlighted key inefficiencies and risks, particularly in the reconciliation of clearing accounts
- Provided actionable insights to streamline these processes, including automation opportunities to reduce manual effort and improve timeliness
- Additionally, we reviewed the bank’s SOPs for balance sheet substantiation and proposed enhancements to strengthen accountability, governance, and overall reconciliation quality
- These interventions helped the client improve control effectiveness, mitigate risk, and lay the foundation for a more robust process.
Strengthen Financial Integrity
From GL Reconciliations to Governance Reviews, Clear Insights, Actionable Improvements
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