Principles for effective risk data aggregation and risk reporting - consultative document issued by the Basel Committee

26 June 2012

Press release

The Basel Committee on Banking Supervision today issued for consultation Principles for effective risk data aggregation and risk reporting - consultative document .

The financial crisis that started in 2007 revealed that many banks, including global systemically important banks (G-SIBs), were unable to aggregate risk exposures fully and quickly. This meant that banks' ability to take risk decisions in a timely fashion was seriously impaired with wide-ranging consequences for individual banks and the stability of the financial system as a whole.

The proposed principles published today are intended to strengthen banks' risk data aggregation capabilities and risk reporting practices. Implementation of the principles will strengthen risk management at banks - in particular, G-SIBs - thereby enhancing their ability to cope with stress. "These proposals are a significant step towards improving banks' risk management capabilities and they will also help to ensure that G-SIBs are resolvable, hence reducing the potential recourse to tax-payers," said Stefan Ingves, Chairman of the Basel Committee on Banking Supervision and Governor of the Sveriges Riksbank, Sweden's central bank.

G-SIBs are required to implement the principles in full by the beginning of 2016 at the latest. The Basel Committee also believes that the principles can be applied to a wider range of banks, in a way that is proportionate to their size, nature and complexity.

The Basel Committee welcomes comments on this consultative document. Comments should be submitted by Friday 28 September 2012 by e-mail to: Alternatively, comments may be sent by post to the Secretariat of the Basel Committee on Banking Supervision, Bank for International Settlements, CH-4002 Basel, Switzerland. All comments may be published on the website of the Bank for International Settlements unless a comment contributor specifically requests confidential treatment.