On 29 April 2020, the Basel Committee on Banking Supervision (Basel Committee) published its latest progress report on banks’ implementation of the Principles for effective risk data aggregation and reporting (the Principles). The progress report is based on the results of a self-assessment survey of authorities with supervisory responsibility for global systemically important banks (G-SIBs). The report reviews G-SIBs’ progress in implementing the Principles as of end-2018.
The progress report notes that none of the banks are fully compliant with the Principles in terms of building up the necessary data architecture and, for many, IT infrastructure remains difficult. But banks’ efforts to implement the Principles have resulted in tangible progress in several key areas, including governance, risk data aggregation capabilities and reporting practices.
Going forward, banks should continue to closely monitor their BCBS 239 implementation programmes, adapting them as necessary to take into account changes in the financial sector. Banks that have struggled to implement the Principles should address weaknesses promptly, which may include committing the resources needed to complete data architecture and IT infrastructure improvement projects.
The Committee will continue to monitor G-SIBs’ progress in adopting the Principles.