Published in 2013, the principles aim to strengthen risk data aggregation and risk reporting at banks to improve their risk management practices and decision-making processes.
The Basel Committee on Banking Supervision issued a second progress report on banks' adoption of the Committee's Principles for effective risk data aggregation and risk reporting.
Firms designated as global systemically important banks (G-SIBs) are required to implement the Principles in full by 2016.
The report published reviews banks' progress in 2014 and updates a 2013 "stocktaking" self-assessment survey completed by G-SIBs, other large banks and supervisors. It outlines the measures G-SIBs have taken to improve their overall preparedness to comply with the Principles, as well as the challenges they face. G-SIBs are increasingly aware of the importance of this topic and have moved towards implementing the Principles. However, of the 31 participating banks, 14 reported that they will be unable to fully comply with the Principles by the 2016 deadline, compared with 10 G-SIBs in 2013.
The Principles apply initially to all systemically important banks and the Committee will continue to monitor G-SIBs' progress towards meeting the 2016 deadline. In addition, the Committee recommends that national supervisors apply the Principles to institutions identified as domestic systemically important banks three years after their designation as such. The Basel Committee believes that the Principles can be applied to a wider range of banks in a way that reflects their size, nature and complexity.
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