Featured Product

    FSI Publishes Report Examining Suptech Experience of Early Users

    July 16, 2018

    FSI published a report that examines the experience of early users with the use of innovative technology by supervisory agencies (suptech) to support supervision. The report first describes the uses of suptech. It then examines user experiences with suptech covering how and why do supervisory agencies develop suptech applications, the challenges that supervisory agencies face in developing suptech applications, and the implications of suptech for supervised entities. Finally, the paper presents useful insights that could help supervisory agencies take advantage of suptech developments.

    The report highlights that suptech is currently found in two areas of applications: data collection and data analytics. Supervisory agencies initiate and organize their suptech activities in several ways. The challenges faced by agencies in developing or using suptech applications include computational capacity constraints; increased operational risks, including cyber risk; data quality; finding the right talent, management support, and buy-in from supervision units; rigid rules in project management; and lack of transparency in some of the data analytics applications. The benefits of suptech applications can extend to supervised institutions. They can lead to reduced compliance costs and contribute to enhanced risk management effectiveness. This is particularly the case for automated reporting. 

    Supervisory agencies would be best placed to explore the potential benefits of suptech applications if they have a well-defined suptech strategy. A suptech strategy should comprise the following three key elements, at a minimum:

    • Ambitious, but achievable, targets (for example, which technology will be used, in which area of supervision, and how will it be funded)
    • An assessment of data availability, data quality, and availability of analytical resources
    • A step-by-step action plan on how the supervisory agency will get from the current situation to full implementation of its suptech strategy

    The experience of early suptech users, as discussed here, yields some useful insights on how to develop such a strategy. The overall approach to supervision should adapt to the digitization of the activities of supervised entities. As finance becomes increasingly digitised, financial supervision needs to keep up.

     

    Related Link: FSI Paper (PDF)

    Keywords: International, Banking, Suptech, Regtech, Suptech Strategy, FSI

    Related Articles
    News

    APRA Publishes Proposal to Increase Transparency of Banking Data

    APRA proposed to substantially increase the volume and breadth of data it makes publicly available on authorized deposit-taking institutions, including banks, credit unions, and building societies.

    December 05, 2019 WebPage Regulatory News
    News

    EC Amends Rule on Mapping of External Credit Assessment Institutions

    EC published the implementing regulation (EU) 2019/2028, which amends Regulation 2016/1799, regarding the mapping tables specifying correspondence between the credit risk assessments of external credit assessment institutions (ECAIs) and the credit quality steps set out in the Capital Requirements Regulation.

    December 04, 2019 WebPage Regulatory News
    News

    EBA Issues Second Part of Advice on Implementation of Basel III in EU

    EBA published the second part of its advice on the implementation of Basel III in EU, which complements the report published on August 05, 2019.

    December 04, 2019 WebPage Regulatory News
    News

    EU Approves European Council Proposal on CCP Recovery and Resolution

    EU ambassadors approved the position of European Council on a proposed framework for clearing houses and their authorities to prepare for and deal with financial difficulties.

    December 04, 2019 WebPage Regulatory News
    News

    EIOPA Consults on Approach for Regulating Key Aspects of PEPP

    EIOPA launched a consultation on the proposed approaches and considerations for its technical advice and its implementing and regulatory technical standards, as mandated by the Pan-European Personal Pension Product (PEPP) Regulation.

    December 02, 2019 WebPage Regulatory News
    News

    ESMA Issues Guidance for Registration of Securitization Repositories

    ESMA published a guidance note on the process for registering securitization repositories under the Securitization Regulation.

    December 02, 2019 WebPage Regulatory News
    News

    European Council Appoints New Commission With Effect from December 01

    European Council appointed the new Commission for the period from December 01, 2019 to October 31, 2024.

    December 02, 2019 WebPage Regulatory News
    News

    BoE Governor Appointed as UN Envoy for Climate Action and Finance

    BoE Governor Mark Carney has been appointed as the United Nations (UN) Special Envoy for Climate Action and Finance.

    December 01, 2019 WebPage Regulatory News
    News

    PRA Publishes Annual List of G-SIIs and O-SIIs

    PRA released the annual list of UK firms designated as other systemically important institutions (O-SIIs), along with the 2019 list of UK-headquartered global systemically important institutions (G-SIIs).

    November 29, 2019 WebPage Regulatory News
    News

    EBA Publishes Report on Risks and Vulnerabilities in EU Banking Sector

    EBA published its annual report on risks and vulnerabilities in the EU banking sector.

    November 29, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4250