The journey towards BCBS 239 compliance continues with global systemically important banks expected to be able to satisfy supervisors when the regulation comes into effect on January 1st 2016. Other banks that are not yet within the scope of the regulation are also making progress, considering how they will comply with the 14 principles of the regulation and realise the potential business and operational benefits of a successful implementation.
The state of play among banks that must meet the January deadline, the extent of implementation work that will continue into 2016 and beyond, and the benefits of compliance for both individual banks and the banking sector as a whole were discussed during this week’s A-Team Group BCBS 239 webinar. The webinar was moderated by A-Team editor Sarah Underwood and joined by Karthik Rajaraman, a data management professional at an international bank; Koen Van Duyse, subject matter expert in regulatory compliance at Collibra; and Matthew Rawlings, head of middle office and operations at Bloomberg.
The webinar participants focussed on the principles-based rather than prescriptive nature of BCBS 239, which means the regulation is open to interpretation by local regulators and is likely to be more of an ongoing programme for banks rather than an opened and closed compliance project. Principles raising most cause for concern include those covering risk data aggregation, which can be a significant cost burden, senior management accountability for data and processes, and the capability to provide data lineage.
While the participants agreed that BCBS 239 is one of the most invasive regulations to hit the banking industry, they concluded that it will help banks become as data savvy as organisations in other industries and establish data as a business asset.
To find out more about:
- The scope of BCBS 239
- Challenges posed by the regulation
- Cost-effective approaches to compliance
- Ongoing implementation plans
- Business and operational benefits
Listen to the A-Team webinar here.