BCBS-239 Compliance

The Basel Committee on Banking Supervision issued ‘Principles for effective risk data aggregation and risk reporting’ (or, as everyone knows it as now, BCBS-239) in light of the realisation that ‘banks’ information technology (IT) and data architectures were inadequate to support the broad management of financial risks’ and that this was a contributor to the global financial crisis. It expected that the 14 Principles described in the document would be met by the designated Global Systemically Important Banks (G-SIBs) by January 2016, and by domestically important banks thereafter.

This has caused banks a very large amount of complex effort in multiple areas – organisation, policies, procedures, systems – in order to be able to comply. As noted here: ‘banks must deal with a regulation that is principles-based and offers few clear metrics by which they can monitor and gauge the effectiveness of their compliance’.

Read the original BCBS-239 document here . . .

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