SARB Consults on Data and Reporting Requisites for Deposit Insurance
SARB published a discussion paper on data definition and the reporting requirements for deposit insurance in South Africa. The paper describes the data requirements and operational proposals for the Corporation for Deposit Insurance (CoDI), which will be established in terms of the Financial Sector Laws Amendment Bill. The proposals take into account country-specific characteristics and applicable international standards. The comment period on the discussion paper ends on April 16, 2021. Once the Financial Sector Laws Amendment Bill is promulgated and CoDI is established, all registered banks will automatically become members of CoDI.
The discussion paper provides details about the data fields required by CoDI, sources for master and reference data, and the associated data formats. It also presents details on the data quality and assurance process of CoDI, governance requirements, and the channels available to banks for data submission. The paper details the need and mandate for CoDI to collect depositor personal information in support of its payout strategy and the focus of CoDI on complying with all relevant privacy legislation. Two reporting options are then proposed for monthly submission of data by banks to CoDI: single customer view (SCV) (depositor-based) and non-SCV (account-based). The reporting is segmented by the type of account (simple, formal beneficiary, or informal beneficiary) and supported with the file structures underpinning each account type. The paper also provide a detailed overview of data requirements of CoDI, documented through data glossary, subject area, conceptual, and logical data models of CoDI.
Granular detail on reference and master data is provided to support understanding of the preferred data sources of CoDI and inform categorization of deposit insurance data. The paper proposes the use of comma-separated values and extensible markup language as the preferred data formats of CoDI, with data to be submitted through an enterprise service bus, secure file transfer, or a web portal. Furthermore, emphasis is placed on the extension of the BCBS principles for effective risk data aggregation and reporting to depositor data. To this end, CoDI will publish a data governance manual, which will provide more detail on its governance requirements, after receiving feedback from banks on the suitability of BCBS 239 and further bilateral engagements. CoDI also plans to publish a systems assessment guideline and a data privacy survey. All banks will be required to perform the assessment and complete the survey. Banks will be expected to provide a report on the outcome of assessment and a plan for getting their systems ready for reporting to CoDI. The paper highlights that further engagements between CoDI and all banks will take place from May 2021 to November 2021.
The Financial Sector Laws Amendment Bill, or FSLAB, contains the high-level enabling framework for the establishment of CoDI. A series of discussion documents from SARB on the key aspects are expected to facilitate the operationalization of CoDI. These discussion documents will be converted to secondary legislation after the promulgation of the Bill. SARB published the first two papers in the series last year: one is on coverage and reporting rules for deposit insurance while the other one is on deposit insurance funding model and the implications for banks. The current paper is the third paper in this series. Additionally, the CoDI payout paper is due to be published in the third quarter of 2021 and the final planned CoDI public awareness paper is due to be published in the first quarter of 2022.
Related Links
Keywords: Middle East and Africa, Banking, Deposit Insurance, Corporation for Deposit Insurance, Reporting, Governance, Basel, BCBS 239, SARB
Featured Experts
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.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
OJK Amends Credit Risk RWAs and Launches Roadmap for Banking SectorRelated Articles
EC Regulation Sets Out Standards for Reporting and Disclosure of MREL
EC published the Implementing Regulation 2021/763 that lays down implementing technical standards for supervisory reporting and public disclosure of the minimum requirement for own funds and eligible liabilities (MREL).
EBA Report Notes Loan Origination Should Remain in Supervisory Focus
EBA published a report that examines the convergence of prudential supervisory practices in 2020 and offers conclusions of the EBA college monitoring activity.
APRA Decides to Standardize Submission Date for Quarterly Reporting
APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.
ECB Working Group Publishes Recommendations on EURIBOR Fallbacks
The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).
Bundesbank Publishes Supporting Documentation for Reporting by Banks
Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.
EBA Publishes Phase 1 of Reporting Framework 3.1
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
IOSCO Sees Support for Mandatory Sustainability Reporting
The Sustainable Finance Taskforce of IOSCO held two roundtables, with global stakeholders, on the IOSCO priorities to enhance the reliability, comparability, and consistency of sustainability-related disclosures and to collect views on the practical implementation of a global system architecture for these disclosures.
APRA to Finalize Capital Adequacy Standard Revisions by January 2022
Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA
ESMA Issues Guidelines on Outsourcing to Cloud Service Providers
ESMA published the final guidelines on outsourcing to cloud service providers.
EBA Publishes Data on Deposit Guarantee Schemes
EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.
