Progress in adopting the principles for effective risk data aggregation and risk reporting January

 

 

The 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

results of the self-assessment questionnaire.

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