The Basel Committee has published its report on the progress of banks’ adoption of its principles for effective risk data aggregation and risk reporting. G-SIBs are required to fully implement these principles by 2016. This report identifies remaining challenges with implementation and makes additional recommendations to promote their adoption, including:
- supervisors should conduct more in-depth/specialised examinations on data aggregation requirements to evaluate weaknesses;
- banks should have governance arrangements in place for manual processes; and
- banks’ compliance with the principles should be subject to an independent evaluation in early 2016.
The Basel Committee also recommends that national supervisors apply the principles to institutions identified as domestic systemically important banks three years after their designation. (Source: Basel Committee Reports on Banks’ Adoption of Risk Principles)