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.
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Keywords: Middle East and Africa, Banking, Deposit Insurance, Corporation for Deposit Insurance, Reporting, Governance, Basel, BCBS 239, SARB
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