The Basel Committee on Banking Supervision has published a report on risk data aggregation and reporting progress.
Its latest progress report on banks’ implementation of the Principles for effective risk data aggregation and reporting. The Principles, which were originally issued in January 2013, aim to strengthen banks’ risk data aggregation and risk reporting. It intends to improve their risk management, decision-making processes and resolvability.
The progress report is based on the results of a self-assessment survey completed by authorities with supervisory responsibility for global systemically important banks (G-SIBs). It reviews G-SIBs’ progress in implementing the Principles in 2017.
The assessment covered 30 G-SIBs designated in 2011-12 that were required to adopt the Principles by January 2016. It notes that last year most G-SIBs made, ‘at best, marginal progress’ in implementing the Principles.
According to the report, G-SIBs have found it challenging to comply with the Principles, due mainly to the complexity and interdependence of IT improvement projects. This has pushed back the expected date of compliance for many banks.
The Basel Committee has made recommendations to promote further adoption of the Principles. It said that banks should continue to implement the Principles according to the roadmaps agreed with their supervisors.
They should also consider how implementation would benefit other data-related initiatives and requirements. The Basel Committee also recommend that supervisors maintain their emphasis on ensuring that banks fully implement the Principles. This includes meeting with banks’ boards of directors and/or senior management in 2018 to receive updates on implementation progress.
Supervisors should also continue to promote home-host cooperation in relation to the implementation of the Principles by global banking groups.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
