In January 2013, the Basel Committee on Banking Supervision (BCBS) issued its Principles for effective risk data aggregation and risk reporting (the Principles). The purpose of the Principles is to strengthen risk data aggregation and risk reporting practices at banks to improve risk management practices.
The Principles were initially addressed to systemically important banks and apply not only at the group level but also to all material business units or entities within that group. National supervisors may nevertheless choose to apply the Principles to a wider range of banks. The BCBS and the Financial Stability Board expect banks identified as global systemically important banks to comply with the Principles by 1 January 2016. In addition, the BCBS strongly suggests that national supervisors also apply the Principles to banks identified as domestic systemically important banks three years after their designation as such by their national supervisors.
The BCBS has now issued a report on banks’ progress in adopting the Principles. In particular, the report mentions that:
- a third of banks will struggle to meet the 1 January 2016 deadline for the implementation of strong data aggregation governance, architecture and processes; and
- the BCBS recommends that national supervisors should consider enhancing their efforts to integrate fully the Principles in a comprehensive way within their supervisory programmes, test banks’ capabilities to aggregate and produce reports in stress or crisis situations, including resolution, conduct thematic reviews and develop concrete supervisory plans or other supervisory tools for 2014 and 2015.
View Progress in adopting the principles for effective risk data aggregation and risk reporting, 18 December 2013