Featured Product

    BaFin and Bundesbank Set Out Digital Agenda for Banking Supervision

    December 28, 2020

    BaFin published an article explaining that BaFin and Bundesbank have defined their strategic objectives as part of a joint digital agenda—representing a comprehensive digital upgrade for banking supervision. As part of the digital agenda, BaFin and Bundesbank will seek to obtain and process data more rapidly, improve quality of data analysis, and optimize internal processes of the supervisors. The article has been written by Raimund Röseler (the Chief Executive Director of BaFin) and Professor Joachim Wuermeling (member of the Executive Board of Bundesbank) and was originally published in Handelsblatt on December 26, 2020.

    Banking supervision essentially involves gathering, examining, and analyzing data and information, which is mostly done by financial supervisors. However, over the last few years, the amount of data has continued to grow and the pace at which data is generated has quickened as a result of the increasingly interconnected financial markets. In this context, the joint digital agenda includes the following:

    • To obtain and process data more rapidly and more easily. The current banking supervisory reporting system is elaborate and highly complex for both banks and financial supervisors. The system is still significantly tied to the rigid structure of reporting forms. BaFin and Bundesbank want to establish more flexible digital channels in future. Instead of requesting information to be reported by a specific deadline as part of an inflexible procedure, supervisors should be able to obtain the information they need from the institutions directly if and where required. Ideally, supervisors would be able to gather more up-to-date and tailored information without overburdening the banks. It is also important to establish a modern and practical reporting system that adds value.
    • To improve the quality of analysis. The objective is to allow financial supervisors to easily access, link, and analyze all of the available data and information regarding a bank. Ideally, this would not only involve the data that must be reported but also information from the media, analysts, and other sources. The goal is to rapidly evaluate large amounts of data and, for instance, use artificial intelligence to find ways to alert supervisors—with analytical tools that are based on advanced analytics methods, machine learning, and text mining, to name a few examples.
    • To optimize internal processes of the supervisors and the process between BaFin and Bundesbank. The plan is to make all relevant information in the area of banking supervision available on a common desktop, similar to a dashboard. This will ensure that BaFin and Bundesbank can see the same data and information at any given time. On this basis, BaFin and Bundesbank can improve the way they jointly process cases, which supervised institutions will benefit from as well.


    Related Link: Article


    Keywords: Europe, Germany, Banking, Banking Supervision, Data Collection, Reporting, Statistical Reporting, Basel, Bundesbank, BaFin

    Featured Experts
    Related Articles

    EBA Sets Out Roadmap for 2023, Updates Reporting Framework 3.2

    The European Banking Authority (EBA) published its work program for 2023 as well as the technical package for phase 3 of version 3.2 of its reporting framework.

    September 30, 2022 WebPage Regulatory News

    FED Announces Launch of Climate Scenario Analysis Exercise in 2023

    The Board of Governors of the Federal Reserve System (FED) announced a pilot climate scenario analysis exercise for six largest banks in the U.S.

    September 29, 2022 WebPage Regulatory News

    BIS Paper Studies Impact of Fintech Lending on Small Businesses in US

    The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.

    September 26, 2022 WebPage Regulatory News

    UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks

    The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).

    September 26, 2022 WebPage Regulatory News

    EBA Launches EU-Wide Transparency Exercise in 2022

    The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.

    September 23, 2022 WebPage Regulatory News

    SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks

    The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."

    September 22, 2022 WebPage Regulatory News

    EC Rule Lists Advanced Economies for Market Risk Capital Calculations

    The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.

    September 21, 2022 WebPage Regulatory News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8523