Basel Committee issues risk data progress report
22 June 2018 Basel
Image: Shutterstock
The Basel Committee on Banking Supervision (BCBS) has published its latest progress report on implementation of the Principles for effective risk data aggregation and reporting by banks.
The Principles, issued in January 2013, are aimed at strengthening risk data aggregation and risk reporting at banks with a view to improving 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-SIB), explained the BCBS.
The report reviews G-SIB progress in implementing the Principles in 2017.
The assessment covered 30 G-SIBs which were designated as such in 2011-12 and required to adopt the Principles by January 2016. The report noted that in 2017 most G-SIBs made, at best, marginal progress in implementation.
G-SIBs have found it challenging to comply with the Principles, due mainly to the complexity and interdependence of IT improvement projects.
As a result, the expected date of compliance has slipped back for many. In view of this, and to promote further progress, the BCBS has made the following recommendations.
One, banks should continue to implement the Principles, according to the road maps agreed with their supervisors and consider how implementation would benefit other data-related initiatives and requirements.
Two, supervisors should maintain their emphasis on ensuring that banks fully implement the Principles.
This includes meeting with the boards of directors and/or senior management in 2018 to receive updates on implementation progress.
Supervisors should also continue to promote home-host co-operation in relation to the implementation of the Principles by global banking groups, said the BCBS.
The BCBS concluded its update by saying that it will continue to monitor G-SIB progress and that it plans to conduct the next adoption assessment in 2019.
The Principles, issued in January 2013, are aimed at strengthening risk data aggregation and risk reporting at banks with a view to improving 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-SIB), explained the BCBS.
The report reviews G-SIB progress in implementing the Principles in 2017.
The assessment covered 30 G-SIBs which were designated as such in 2011-12 and required to adopt the Principles by January 2016. The report noted that in 2017 most G-SIBs made, at best, marginal progress in implementation.
G-SIBs have found it challenging to comply with the Principles, due mainly to the complexity and interdependence of IT improvement projects.
As a result, the expected date of compliance has slipped back for many. In view of this, and to promote further progress, the BCBS has made the following recommendations.
One, banks should continue to implement the Principles, according to the road maps agreed with their supervisors and consider how implementation would benefit other data-related initiatives and requirements.
Two, supervisors should maintain their emphasis on ensuring that banks fully implement the Principles.
This includes meeting with the boards of directors and/or senior management in 2018 to receive updates on implementation progress.
Supervisors should also continue to promote home-host co-operation in relation to the implementation of the Principles by global banking groups, said the BCBS.
The BCBS concluded its update by saying that it will continue to monitor G-SIB progress and that it plans to conduct the next adoption assessment in 2019.
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