Progress in adopting the principles for effective risk data aggregation and risk reporting January
Wednesday 04 February 2015The Principles are initially applicable to systemically
important banks (SIBs) and apply not only
at the group level but also to all material business units or
entities within the group. National supervisors
may nevertheless choose to apply the Principles to a wider
range of banks. The Basel Committee and the
Financial Stability Board (FSB) expect banks identified as
global systemically important banks (G-SIBs) to
comply with the Principles by 1 January 2016.2 In addition,
the Basel Committee strongly suggests that
national supervisors also apply the Principles to banks
identified as domestic systemically important
banks (D-SIBs) three years after their designation as such by
their national supervisors.
The Basel Committee and national supervisors have agreed to
monitor and assess banks’
progress through the Basel Committee’s Supervision and
Implementation Group (SIG), which will share
its findings with the FSB at least annually from the end of
2013. To facilitate consistent and effective
implementation of the Principles among G-SIBs, the SIG decided
to use a coordinated approach for
national supervisors to monitor and assess banks’ progress
until 2016. The first step of this coordinated
approach was to implement a “stocktaking” self-assessment
questionnaire, which was completed by GSIBs
during 2013.
Taking into consideration the results of the 2013 stocktaking
exercise, discussions with the
industry, and national supervisors’ continuous monitoring of
banks, the Basel Committee agreed that it
would be appropriate to design a reduced survey and to focus
on the fundamentals, particularly: (i)
governance; (ii) infrastructure; and (iii) data aggregation
accuracy. This report reviews the high-level