Regulatory reporting reconciliation where every difference between your reports is explained from its record, or traced to the feed that caused it
Breaks found and fixed at the source before filing, not after an examiner asks.
See one case, screen by screen ↓Regulatory reporting reconciliation is the work of proving that a balance agrees, or differs for a documented reason, across the general ledger and every regulatory report it appears on: the Call Report, the FR Y-9C, the FR 2900 and the FR 2052a. This solution does it with agents: they run every cross-report rule each night of the close, explain each known difference from its record, trace any remainder to the accounts, the feed and the mapping row behind it, and draft the break for the data owner. People send the breaks, fix at the source and approve every closure and top-side adjustment.
AI use cases in banking: a buyer's guide to agentic AI for bank and credit union operations →
Updated
Regulatory reporting reconciliation starts from a plain fact: a bank's balances live in many places at once. Total deposits sits in the general ledger, on the Call Report, on the holding company's FR Y-9C, in the weekly FR 2900 and in the FR 2052a liquidity report, and the supervisors compare them. Many differences are legitimate. The holding company's cash is eliminated in consolidation, the FR 2900 is a weekly average that covers US offices only, late adjustments post after the weekly report is filed, and accrued interest sits in a different line. Some differences are an error in a feed or a mapping table.
Today an analyst exports the trial balance, the report drafts, the FR 2900 as filed and the FR 2052a run into one workbook per report pair, and looks up the same balance in each. The reconciling items are copied forward from last quarter's explanation tab, often without re-deriving the amounts. What is left goes out as emails to system owners, with no owner and no SLA on record. Under deadline pressure a top-side adjustment makes the report tie, the source stays wrong, and the same adjustment comes back next quarter. When an examiner or internal audit asks for the evidence, it is assembled by hand.
Estimated split for one regulatory reporting analyst who owns a set of cross-report rules, by hand in spreadsheets and with the solution. The last row goes up on purpose: the time the agents give back goes to reviewing what they found and deciding.
Six agents tie out, explain, trace, draft, check and watch the clock; data owners fix at the source and the manager approves every closure and adjustment.
Regulatory reporting reconciliation at Corvane National Bank, about $92 billion in assets with one foreign branch, owned by Corvane Financial Corporation. The quarter is Q3 2026, report date September 30. It is Thursday, October 22, day 22 of a 30-day close; the Call Report is due Friday, October 30 and the FR Y-9C Monday, November 9. Here is total deposits, screen by screen, in the working solution.
Run 22 of the close finished at 02:10: 214 rules, 201 tie, 9 break, 4 waiting for the Checker agent. Dana opens total deposits, rule RR-DEP-001, tolerance $5.0M. The general ledger and the Call Report both read $71,482.6M, the FR Y-9C $71,441.4M, the FR 2900 $70,961.3M and the FR 2052a parallel run $71,310.3M. Between each pair, the Explainer agent lists the reconciling items with their kind: Elimination, Averaging, Scope, Timing, Treatment.
“214 concepts · 201 tie · 9 break · 4 checking”
The −$41.2M between the Call Report and the FR Y-9C carries a small numbered citation. It opens the elimination journal from the consolidation system, ELIM-0930-04, with the entry highlighted: Dr Deposits $41,200,000 / Cr Cash and balances due $41,200,000, the holding company's operating cash held at the bank. Opening a source is recorded in the audit trail.
“The highlighted passage is the exact text the citation points to.”
Dana asks why the FR 2900 is lower. The Explainer agent answers with its records: the weekly average against the September 30 balance, −$468.2M; the Cayman Islands branch outside the FR 2900's scope, −$41.9M; $11.2M of late adjustments, which is exactly the gap on the Federal Reserve's single-day check. With +$37.6M of accrued interest from a treatment memo, five items explain $600.1M. One line is left at the bottom.
“Unexplained: $168.7M · above the $5.0M tolerance · Trace the $168.7M”
The Trace agent shows its plan and each step. It matches 5,686,328 accounts in the deposit system against 5,684,210 rows in the FR 2052a's Outflows – Deposits and finds 2,118 accounts, $168,712,440.07, all mortgage escrow under product code ESC-MTG2. Feed LIQ-DEP-07 wrote them to Outflows – Other through mapping row 318, added August 18. Under the old code, row 117 mapped escrow to deposits, and in June the rule tied.
Confidence 0.97. The agent only reads, and account numbers stay masked: ••••4471, $81,240.18.
The Break agent has drafted BRK-Q3-038 for Lena Marsh, the Deposit Data Owner, with six pieces of evidence and a proposed source fix: point row 318 at Outflows – Deposits and reload the feed for September 30. Dana reads it, can edit it, and sends it. The SLA starts now: three business days, due Tuesday, October 27 at 17:00.
No top-side adjustment: the October run would repeat the error.
Lena sees the same break with one next step: fix it at the source. She records change ticket CHG-48231 and what changed, tested by Jorge Salas, the Liquidity Data Owner. She could instead ask for more time with a reason, or send it back as not hers with a suggested owner.
“Row 318 of MAP-2052A-DEP now targets Outflows – Deposits, as row 117 does. Feed LIQ-DEP-07 reloaded for September 30.”
The Checker agent reloads the feed: 5,686,328 accounts read, none to Outflows – Other. It reruns RR-DEP-001: the FR 2052a run now reads $71,479.0M, equal to the FR Y-9C plus accrued interest. Then it checks the source, not the report: row 318 changed, and there is no top-side adjustment on the concept. Unexplained: $0.0M.
“The Checker agent confirmed the fix landed at the source. The rule ties.”
Dana proposes the closure: fixed at source, confirmed by the Checker agent. Victor approves it as checker, five business days before the Call Report is due. Had he returned it, he would have picked a reason code: evidence does not support the fix, fix at source instead, or wrong owner. Nobody approves their own work.
The break queue holds 38 breaks this quarter: 8 open, 4 with a fix applied, 26 closed. Each row says what differs, by how much and who owns it. The Close watcher reminds on the due date, alerts the manager after one business day and escalates to the Head of Regulatory Reporting after two. Victor selects two late rows to nudge, reassign or escalate in bulk.
BRK-Q3-030, loans secured by 1–4 family residential properties, $23.4M: 3 days late, escalated to Simone Achebe.
From the audit trail, the pack for Federal Reserve examiners holds the 214 rules with versions and owners, every run with each value and its record, the 38 breaks with evidence and sign-offs, the 22 reconciling items with their basis records, the top-side adjustments with maker and checker, and the agents' versions, models, thresholds and human overrides. Customer data is masked and the index is signed.
“Corvane-RRR-Q3-2026-FRB-pack.zip · 412 files · index signed”
The same close, seen by the five people who carry it: what the work looked like, and what it looks like now.
Six agents tie out, explain, trace, draft, check and watch the clock; data owners fix at the source and the manager approves every closure and adjustment.
Runs the 214 cross-report rules every night of the close and on demand after a fix, reading each value from the general ledger, the Call Report, the FR Y-9C, the FR 2900 and the FR 2052a run with its record.
Finds the known reconciling items between each pair of places (eliminations, averaging, scope, timing, treatment, classification), cites each one, and re-derives every recurring item from its record each run.
Follows a remainder to account-level records, groups the gap by product, feed and mapping row, and compares with the prior quarter to say what changed.
Drafts each break in plain words, with the evidence, a proposed source fix, the owner of the system the trace named and a 3-business-day SLA.
After a fix, reruns the rule, checks that the source record changed, and records whether the concept ties at the source or only after a top-side adjustment. Flags adjustments that recur.
Ties every break's SLA to the filing calendar: reminds on the due date, alerts the manager after one business day, escalates to the Head of Regulatory Reporting after two, and reruns rules held by a late feed.
Sends · fixes at the source · approves as checker. The agents propose; a named person decides.
The assistant answers from the bank's own records (the run, the reconciling items, the trace, the breaks and the audit trail), cites each claim, and opens the screen that proves it.
Why is the FR 2900 lower?
The FR 2900 is a daily average for the week of September 29 to October 5, and corporate balances that arrived for quarter-end left in early October: −$468.2M. The Cayman Islands branch is outside its scope, because the FR 2900 covers US offices only: −$41.9M. Late adjustments add −$11.2M. On the Federal Reserve's single-day check, September 30 reads $71,429.5M against $71,440.7M in domestic offices, exactly the late adjustments.
Why is the FR 2052a run lower than the FR Y-9C on total deposits?
The FR 2052a run shows $71,310.3M against $71,441.4M on the FR Y-9C. Accrued interest on time deposits adds $37.6M, which leaves $168.7M unexplained. It matches 2,118 mortgage escrow accounts that mapping row 318 sends to other liabilities.
Which breaks are past their SLA?
Two. BRK-Q3-030, loans secured by 1–4 family properties ($23.4M, Ari Benson), is 3 business days late and went to Simone Achebe on October 21. BRK-Q3-036, the allowance for credit losses ($4.2M), is 1 day late; Victor Osei has a reminder. Both are before the October 30 filing date.
Which explained differences changed since June?
All 21 recurring items moved a little; one no longer holds. The unamortized premium on the March residential pool rose from $18.2M to $26.9M; a premium should fall as it amortizes, so it is held for a person. The averaging items grew with quarter-end inflows, for example $402.6M to $468.2M on total deposits.
13 screens from the working solution, on its sample data. Pick one to see it large.
What an administrator sets, in six tabs: roles and permissions, tolerances and SLAs, integrations, models and prompts, data and privacy, notifications. Every change is a new version, approved by a second administrator.
| Setting | Default | Choose from |
|---|---|---|
| Break tolerance, deposits | $5.0M unexplained | Set per area: loans, securities, cash and liabilities $2.0M · capital and credit quality $1.0M · income and expense $0.5M · off-balance-sheet and liquidity flows $5.0M |
| Data owner SLA | 3 business days | Counted from the moment the analyst sends the break |
| Escalation ladder | Default ladder | Reminder on the due date · manager after 1 business day · Head of Regulatory Reporting after 2 |
| Run schedule | 02:00 every night | Nightly from the first day after quarter-end to the filing date, and on demand |
| Confidence thresholds | Explainer 0.90 · Trace 0.85 · Checker 0.95 | Set per agent; each change tested against last quarter's golden set of 38 breaks |
| Mask customer names and account numbers | On | On · off; visible only to the data owner of the system that holds them |
| Retention | Workpapers 7 years; account-level extracts 5 years | On · off; extracts follow the BSA five-year rule, then are deleted with a record |
| Text message to data owners on the due date | Off | On · off; the nightly digest to analysts at 06:30 and escalations to the Head are on |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample bank data · “estimated” = our estimate, with the split shown · “typical” = published figures: the Call Report general instructions (filed within 30 calendar days of the report date, 35 with more than one foreign office), ffiec.gov; the FR Y-9C general instructions (filed by holding companies with $3 billion or more in total consolidated assets, within 40 calendar days after the March, June and September report dates and 45 after December), federalreserve.gov; and the Federal Reserve and OCC actions of July 10, 2024 ($60.6 million and $75 million against one large bank, partly over regulatory reporting data quality). The known differences between the FR 2900 and the Call Report follow the Federal Reserve's Summary of Legitimate Interseries Differences (September 2018). Corvane National Bank, Corvane Financial Corporation, their account numbers and every balance shown are fictional sample data. People named on this page are characters in the working solution.
Regulatory reporting reconciliation is the work of proving that a balance agrees, or differs for a documented reason, across the general ledger and every regulatory report it appears on: the Call Report, the FR Y-9C, the FR 2900 and the FR 2052a. This solution does it with agents: they run every cross-report rule each night of the close, explain each known difference from its record, trace any remainder to the accounts, the feed and the mapping row behind it, and draft the break for the data owner. People send the breaks, fix at the source and approve every closure and top-side adjustment.
One concept at a time, with the same number stacked as it appears in each place. Between each pair, the Explainer agent lists the reconciling items by kind: a holding company elimination between the Call Report and the FR Y-9C; the weekly average, the US-offices scope and late adjustments between the Call Report and the FR 2900; a documented treatment, such as accrued interest, for the FR 2052a. Each item opens the record it came from.
It becomes one remainder line against the rule's tolerance, with one next step: trace it. The Trace agent matches account-level records between the two places, groups the gap by product, names the feed and the mapping row, and compares with the prior quarter. The Break agent drafts a break for the owner of that system with a proposed source fix and a 3-business-day SLA, and the analyst decides whether to send it.
No. The Explainer agent re-derives every recurring item from its record each run: the elimination journal, the daily balances, the treatment memo. Acknowledging items in bulk runs that re-check first, and any item that moved against its documented basis is held for a person, who can send it to its owner as a question.
Every top-side adjustment has a maker and a checker. The analyst proposes it with a reason; the Regulatory Reporting Manager approves or returns it with a reason code, and never approves their own. The Checker agent records whether each concept ties at the source or only after an adjustment, and flags an adjustment that comes back quarter after quarter.
No. It reads the drafts from your regulatory reporting system, the general ledger, the consolidation system, the liquidity data mart and the deposit and core banking systems, and never changes a figure in any report. Fixes are made by the people who own the source systems, and breaks open as tickets in your issue management system.
An append-only trail of every run, explanation, trace, break, adjustment, approval and settings change, people and agents on the same terms, with reasons and versions. It exports as a pack for Federal Reserve or OCC examiners, internal audit or the Head of Regulatory Reporting, with customer data masked, supervisory information labeled and a signed index. Internal audit reads everything and can change nothing.
Yes. The agents read, explain, trace, draft and check; they never send a break, close one, approve an adjustment or reassign work. People do those, under maker-checker with reason codes. The Agentic Solution Engine builds and deploys the solution from your requirements and documents, such as your report pairs, mapping tables and known reconciling items, and it goes live once every quality gate has passed.
The CFO attests on evidence the agents collected and tested, not on emails.
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