BoE Calls for Vendor Input for Data Collection Transformation Program
The Bank of England (BoE) opened the Alternative Liquidity Facility, or ALF, for deposits from the participating UK-based Islamic banks for the first time. This non-interest-based deposit facility was launched in December 2020 and is designed to provide banks that cannot pay or receive interest with a similar ability to place funds at BoE as conventional banks. In this, the participant deposits are backed by a fund of high-quality Shari’ah compliant securities known as sukuk and, in this first instance, the fund has purchased sukuk issued by the Islamic Development Bank. Additionally, BoE published a joint transformation program that sets out a vision and approach to delivering improvements in data collection over the next decade. As part of this initiative, BoE is requesting input, until December 10, 2021, to the solution design and wishes to engage stakeholders with relevant knowledge and expertise in areas that relate to the Quarterly Derivatives Return and Commercial Real Estate reporting use cases. This request for input is part of the engagement process with third-party suppliers to the financial services industry.
The joint transformation program is taking a use case approach to research, design, and test solutions to address the issues the regulators and industry face. The three use cases for 2021/22 are the Quarterly Derivatives Return (BoE return), Commercial Real Estate reporting (BoE return), and the COVID-19 impact survey focusing on the financial resilience elements (FCA return), though BoE is requesting input in areas that relate to the Quarterly Derivatives Return and Commercial Real Estate reporting use cases. BoE is reaching out to suppliers to support the design phase for the use cases to find potential solutions to the issues that BoE faces. Any potential solutions will need to address elements or all of the statements related to the following:
- To meet the quarterly financial derivatives market reporting needs of the current and future anticipated international standards in the most consistent, effective, and efficient way
- To communicate and embed Financial Derivatives return (Form DQ)-related reporting requirements in the most effective, consistent, and flexible way
- To efficiently get the commercial real estate (CRE) data BoE needs to proactively monitor and intervene if necessary
- To communicate and embed (CRE-related) reporting requirements in the most effective, consistent, and flexible way between BoE and firms including expectations, feedback, and other useful information for firms
Potential solutions will also need to cover how they could deliver benefit in the short, medium, and longer term. BoE will be holding demo days where interested parties can describe the solution idea(s), the key hypotheses for change/benefits, key milestones on a theoretical implementation road-map, and key implementation risks. All submissions will be reviewed by the joint transformation program. By December 21, 2021, a response will be sent from the joint transformation program to the selected solution providers with time and date of the demo. Some vendors will be invited to attend one of the demo days to present their proposal to a small panel of representatives from the FCA, BoE, and reporting firms involved in the joint transformation program. BoE may also follow up separately with other vendors depending on the basis of the proposal.
BoE also published a summary of the meeting of the Reporting Transformation Committee, which will focus on overseeing the design of solutions for parts of the reporting process where BoE, the Financial Conduct Authority (FCA), and reporting firms interact directly. This will cover aspects of modernizing reporting instructions and creating a better integrated end-to-end reporting process. At the meeting Andy Beale of FCA presented the current progress of the project plan and highlighted that the project is on track. Form DQ discovery is ending and its alpha phase is beginning. Discovery work on the CRE and Financial Resilience Survey use cases is ongoing. Angus Moir of the BoE Transformation Program Lead, proposed postponing the Liquidity Metric Monitoring LMM use case due to limited resource in the delivery groups, as it would be better to focus the efforts of the group onto the use cases already in progress. The Committee approved the decision to delay the start of this use case. In addition, Andy Beale of FCA outlined the vendor engagement process. The team wants to be open and get the perspective of vendors who have a wide range of experience and may have more specific insight on current issues faced by reporting firms for regulatory data collections. As a next step, members are expected to send contact details of any relevant vendors to the secretariat.
Related Links
- Press Release on Alternative Liquidity Facility
- Joint Transformation Program
- Reporting Transformation Committee: Meeting Summary
Keywords: Europe, UK, Banking, Securities, Liquidity Facility, ALF, Credit Risk, Data Collection, Form DQ, Derivatives, Reporting, Commercial Real Estate, Regtech, Data Transformation, Islamic Banking, FCA, BoE
Featured Experts

Karen Moss
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Related Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
BCBS Issues Climate Risk Principles while HKMA Expresses Its Support
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.