Featured Product

    BCBS Gauges Progress on Implementation of Data Aggregation Principles

    April 29, 2020

    BCBS published the latest progress report on implementation of the BCBS 239 principles, also known as the Principles for effective risk data aggregation and reporting, by banks. The report reviews progress of 34 global systemically important banks (G-SIBs) in implementing the principles as of the end of 2018, with the assessment having been completed before onset of the COVID-19 pandemic. The assessment concludes that none of the banks are fully compliant with the principles in terms of building up the necessary data architecture and, for many, IT infrastructure remains difficult. However, banks' efforts to implement the principles have resulted in tangible progress in several key areas, including governance, risk data aggregation capabilities, and reporting practices.

    Despite the improved overall performance, no bank has been assessed as fully compliant with all the principles in this assessment. This contrasts with the 2017 assessment exercise, in which three banks had qualified for the rating of “4” (the highest rating) for all principles. Increased awareness among banks has resulted in better in-depth analysis and this, together with the expanded scope of projects aimed at implementing the principles, partially explains the ratings downgrades. Many banks have expanded their implementation scope beyond risk data management to incorporate strategic initiatives—including regulatory reporting, financial reporting, and recovery and resolution planning—into their BCBS 239 implementation programs. Supervisors observed notable improvements in banks’ overarching governance, risk data aggregation capabilities, and reporting practices. In particular, banks have:

    • Established enterprise data strategies and data management frameworks and appointed relevant governance committees and managers for key roles in data management (such as data-owners and -stewards) to improve data oversight
    • Improved data dictionaries, which is a key aspect of Principle 3, enterprise data quality metrics, and data lineage
    • Enhanced quality assurance, allowing identification and correction of data quality issues
    • Initiated automated reporting platforms, which strengthen ad hoc reporting capabilities
    • Established group-level reporting policies, which set out the periodicity and dissemination of reports

    As per the progress report, the reasons why banks have been unable to effectively implement the Principle 2 on data architecture and IT infrastructure have not changed drastically over the years. Banks have unaligned IT solutions and legacy systems, which hamper reconciliations of risk data. This hinders banks from producing accurate reports with sufficient granularity to meet ad hoc data requests. This also explains the challenges faced by banks in implementing Principles 3 (accuracy and integrity), 5 (timeliness), 6 (adaptability), and 7 (accuracy). Appendix 2 to the report provides more detailed examples of effective and ineffective practices among banks for implementing the Principles. BCBS will continue to monitor the progress of G-SIBs in adopting the principles. Nevertheless, to promote full adoption of the Principles, the Committee has made the following recommendations: 

    • Banks should continue to closely monitor their implementation of the principles, adapting them as necessary to take into account any changes in the financial sector. Banks that have struggled to implement the principles should address weaknesses promptly, which may include committing the resources needed to complete data architecture and IT infrastructure improvement projects. 
    • Supervisors should continue to monitor the progress made by banks in implementing the principles. Supervisors should also take appropriate measures to address delays and ineffective implementation

     

    Related Links

    Keywords: International, Banking, Reporting, Data Aggregation, BCBS 239, Progress Report, G-SIBs, Statistical Reporting, BCBS

    Featured Experts
    Related Articles
    News

    OSFI Outlines Prudential Policy Priorities for Coming Months

    OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BIS Announces TechSprint on Innovative Green Finance Solutions

    Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.

    May 06, 2021 WebPage Regulatory News
    News

    EBA Proposed Regulatory Standards for Central Database on AML/CFT

    EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.

    May 06, 2021 WebPage Regulatory News
    News

    ECB Responds to EC Consultation on Crisis Management Framework

    ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.

    May 06, 2021 WebPage Regulatory News
    News

    ACPR Publishes Version 1.0.0 of RUBA Taxonomy

    ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BCBS, CPMI, and IOSCO to Survey Market Participants on Margin Calls

    BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.

    May 05, 2021 WebPage Regulatory News
    News

    ECB Amends Decision on TLTRO III

    ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III.

    May 05, 2021 WebPage Regulatory News
    News

    Central Bank of Ireland Issues Draft Template for AnaCredit Reporting

    The Central Bank of Ireland published Version 2.7 of the draft credit data template and rules for monthly AnaCredit reporting by banks.

    May 05, 2021 WebPage Regulatory News
    News

    OSFI Consults on Revisions to BCAR and Leverage Requirements Returns

    OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.

    May 04, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Revisions to Nonperforming Loan Data Templates

    EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.

    May 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6936