Some banking experts believe that the industry is not going to be able to meet the 1 January 2016 deadline for complying with PERDARR, the Basel Committee on Banking Supervision’s BCBS 239 Principles for effective risk data aggregation and risk reporting, according to a recent report by Waters Technology.
The publication notes that Basel III laid down rules to ensure that firms have enough capital to cover their risk, but it was left to BCBS 239 to steer the sector on how to determine and monitor that risk.
Reporting on recent webcasts on the topic, Waters Technology said that “the industry appears to be making progress at managing multiple types of data and reacting to regulatory mandates such as those contained in BCBS 239”.
But John Bottega, a senior advisor for the EDM Council, said, “It won't happen by 2016. It will take some time.” One problem is just how vague the rules are. “The specifics of … what constitutes adherence, is still up for grabs," Bottega said. “There are still a lot of conversations going.”
Others aren’t so sure that there’s a problem with the deadline, in part because the PERDARR rules are said to represent a “tipping point”: in other words, banks were working on these issues anyway, regardless of BCBS 239. Peter Serenita (pictured), group chief data officer at HSBC in New York, said in a webcast: “Even before BCBS 239, data value had reached a level higher than ever before in organizations… BCBS 239 is a reinforcement of what needed to be done and was being done in a lot of places.”
The publication concludes: “Those who are unprepared to follow BCBS 239 standards shouldn't count on a delay by its authors before 2016 arrives.”
Read the full Waters Technology article by clicking here.