I am pleased to provide you with our latest Regulatory Newsletter which includes a focus on BCBS 239 and a comprehensive update on European regulations for the Financial Service industry. The Basel Committee for Banking Supervision issued 14 Principles on January 2013 (also called BCBS 239) aiming at strengthening banks’ risk data aggregation capabilities and internal risk reporting practices. Full implementation of these principles will be a long journey, and banks should consider how to embed BCBS 239 in their ongoing processes, beyond the mere focus on the compliance deadline (January 2016).
We hope this paper will provide some guidance and help you understand key questions around the principles.
Focus BCBS 239
• Over the last few years, financial institutions have been facing increased regulatory changes combined with a growing number of reporting demands with a more and more detailed information granularity (COREP, FINREP, FSB reports, European AQR, etc.). Stress tests performed in Europe (EBA, FDSF for the UK ) and in the US (CCAR) emphasized weaknesses in banks’ risk management reports and governance.
• In order to strengthen banks risk data capabilities and better risk reporting practices, the Basel Committee on Banking Supervision (BCBS) published on Jan. 9 th 2013 some recommendations on 14 principles for effective risk data aggregation and risk reporting."