Featured Product

    BoE Calls for Vendor Input for Data Collection Transformation Program

    December 03, 2021

    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

    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
    Related Articles
    News

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News
    News

    EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules

    The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.

    October 31, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks

    As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.

    October 19, 2023 WebPage Regulatory News
    News

    BCBS and EBA Publish Results of Basel III Monitoring Exercise

    The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.

    October 18, 2023 WebPage Regulatory News
    News

    PRA Updates Timeline for Final Basel III Rules, Issues Other Updates

    The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.

    October 18, 2023 WebPage Regulatory News
    News

    US Treasury Sets Out Principles for Net-Zero Financing

    The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.

    October 17, 2023 WebPage Regulatory News
    News

    EC Launches Survey on G7 Principles on Generative AI

    The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.

    October 14, 2023 WebPage Regulatory News
    News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News
    News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News
    News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8938