Regulatory Reporting – The current landscape and emerging trends

In a deeply interwoven world, where a flutter here can induce a burst there, global financial systems function as a unified organism, whose movements greatly impact the world economy. Regulatory reporting and banking supervision is a systemic approach to ensure the health of this organism and pre-empt issues before they snowball into crises. Precipitated by the global financial crisis of 2008, adequate risk data systems and processes have helped banks build resilience and ability to weather crisis, as has been largely evident in pandemic ridden times. In continuing to supply the financing the economy required, the financial system has alleviated, and not amplified the impact of the crisis. There is no gainsaying that a robust banking sector, ably backed by effective global regulatory standards is of paramount importance.

 

The vertebral column of regulatory reporting

The Basel Committee on Banking Supervision (BCBS), first formed in 1974, is the primary global standard setter for the prudential regulation of banks and provides a forum for regular cooperation on banking supervisory matters. Its 45 members comprise central banks and bank supervisors from 28 jurisdictions. The Committee has established a series of international standards for bank regulation, most notably its landmark publications of the accords on capital adequacy which are commonly known as Basel I, Basel II and, most recently, Basel III. Through various guidelines and frameworks through the decades, BCBS ensures that international supervision coverage is all-encompassing and all banking establishments are adequately and consistently supervised.

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