Compliance

10:28 AM
Reuters
Reuters
News
Connect Directly
RSS
E-Mail
50%
50%

Top Banks Told to Centralize Risk Data by 2016

The world's top banks have three years to build up a single picture of all their risks to help make the wider financial system safer, global regulators said on Wednesday.

The world's top banks have three years to build up a single picture of all their risks to help make the wider financial system safer, global regulators said on Wednesday.

"The financial crisis that began in 2007 revealed that many banks, including globally systemically important banks (G-SIBs), were unable to aggregate risk exposures and identify concentrations fully, quickly and accurately," the Basel Committee on Banking Supervision said in a statement.

G-SIBs refers to the world's top 28 banks like Goldman Sachs, HSBC, Deutsche Bank and Morgan Stanley which are required to undergo closer scrutiny and hold extra capital from 2016.

Such banks operate globally with many branches and subsidiaries, making it harder and costlier to have a single snapshot of risks.

The Basel Committee, which groups regulators and central bankers from 27 financial centres, set out principles these banks must implement in full by January 2016 to strengthen their aggregation of data on risks.

"These principles are a significant step towards improving banks' risk management capabilities and they will also contribute to G-SIBs' resolvability, hence reducing the potential recourse to taxpayers," Basel Committee chairman Stefan Ingves said.

(Reporting by Huw Jones; Editing by Mark Potter)

Copyright 2012 by Reuters. All rights reserved.

Comment  | 
Print  | 
More Insights
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology - August 2014
Modern core systems are emerging as the foundations of effective channel integration and customer engagement initiatives.
Slideshows
Video