Selected Publications: From data reporting to data-sharing

23. Dezember 2020, von Pedro Magalhães Batista

Foto: CC

The Financial Stability Institute at the Bank for International Settlements has a new report on the implementation of new technologies for regulatory reporting and supervision. The FSI Insights on policy implementation No 29, "From data reporting to data-sharing: How far can suptech and other innovations challenge the status quo of regulatory reporting?" by Juan Carlos Crisanto, Katharina Kienecker, Jermy Prenio, and Eileen Tan, presents a comprehensive analysis of regulatory reporting initiatives implemented in 10 financial authorities worldwide. The report makes a case for using new technologies to solve the uncertainty about data accuracy and completeness and the complexity in transforming internal firm's data into required reporting data. According to the report, most financial authorities implement these innovations to facilitate data standardisation and granularity while half are also focusing on data transformation and transformation rules.

However, according to the authors, the ultimate goal of moving from regulatory data reporting to data-sharing is pursued by only a few authorities. Such a move would allow financial authorities to access information directly from the financial institutions' databases and assisting on-demand supervision and more effective and timely reactions from the financial authorities. The barriers to achieving this reality are replacing legacy systems, especially from smaller financial institutions, and reconciling the multitude of conflicting stakeholders' interests. Finally, from the study of the current initiatives in place in such authorities, for these innovations to succeed will be required strong commitment from financial authorities and institutions, an alignment of vision by major stakeholders, a culture of innovation and experimentation, centralised data governance, and effective management of the transition to these new reporting practices.