Banks must 'significantly upgrade' IT systems for risk compliance, says Basel Committee. Progress report reveals a third of major global banks will miss deadline.
At a financial management event last month, HSBC's chief data officer Peter Serenita warned that no financial firm has implemented data management as 'business as usual', despite regulatory demands around risk reporting.
Banks are unable to adequately assess financial risk due to delays in upgrading IT systems, according to the Basel Committee on Banking Supervision.
The committee, which consists of a number of international regulation authorities, released guidelines in January aimed at improving bank IT systems which were deemed “inadequate” for identifying risk following the global financial crisis. Banks designated as critical to global financial stabilityare expected to meet the committee’s requirements to improve systems by 2016.
A progress report released yesterday highlighted that only 10 of the 30 banks surveyed will fully comply with the committee's demands by the deadline, and "need to significantly upgrade their risk IT systems and governance arrangements". [more]
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