- Basel Committee issues progress report on banks’ implementation of the BCBS 239 Principles for effective risk data aggregation and reporting.
- Nearly 10 years after the initial publication of BCBS 239, banks are at different stages in terms of aligning with the Principles. Additional work is required at all banks to attain or sustain full compliance.
- The recommendations to banks and supervisors that were highlighted in previous reports still apply and are complemented by additional recommendations.
The Basel Committee on Banking Supervision today published a progress report on banks’ implementation of the BCBS 239 Principles for effective risk data aggregation and reporting. The report provides an update on the progress made by 31 G-SIBs (designated during 2011-21) in adopting the Principles.
Nearly a decade after the initial publication of the Principles and seven years after the expected date of compliance, banks are at different stages in terms of alignment. Additional work is required at all banks to attain or sustain full compliance. The global pandemic and recent stress events provided a stark reminder that banks’ ability to manage risk-related data is essential for sound decision-making.
Consequently, the recommendations to banks that were identified in the previous reports still apply. In addition, boards should take full responsibility for overseeing the development, implementation, and maintenance of robust data governance frameworks. Furthermore, banks should foster a culture of ownership and accountability for data quality across the organisation, adopt the Principles comprehensively in a broader context and ensure sound data quality as the basis for digitalisation projects.
Similarly, the recommendations to supervisors that were highlighted in previous reports are still valid. In addition, supervisors should consider making greater use of the more intensive targeted activities, applying more forceful measures to address long-standing risk data aggregation and reporting deficiencies, and encouraging the application of the Principles in a broader context.
The Committee will continue to monitor G-SIBs’ progress in adopting the Principles.
Note to editors:
The Basel Committee is the primary global standard setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability. The Committee reports to the Group of Central Bank Governors and Heads of Supervision and seeks its endorsement for major decisions. The Committee has no formal supranational authority, and its decisions have no legal force. Rather, the Committee relies on its members’ commitments to achieve its mandate. The Group of Central Bank Governors and Heads of Supervision is chaired by Tiff Macklem, Governor of the Bank of Canada. The Basel Committee is chaired by Pablo Hernández de Cos, Governor of the Bank of Spain.
More information about the Basel Committee is available here.