Seven international banks and two domestic systemically important banks have come together in Singapore to create a new framework for regulatory reporting.
Driven by the upcoming revision to Notice 610, AxiomSL is leading the charge to define a new reporting structure based on taxonomy or the classification of data.
The reporting software provider is working with nine banks, as well as consultancy firm PwC, and subject matter expert BR-AG on this initiative.
Commenting on the proposal, AxiomSL’s Asia Pacific CEO Peter Tierney told Citywire Asia:
‘We discovered that regulators around the world are starting to ask for information in ways that are different from the traditional forms that you would recognise.
‘They are asking for the data in terms of a data structure so the relationship between the data points has already been established by the regulator. So it’s much easier for a bank to interact with that, than to interact with 230 pages of forms and 340,000 cells.’
The 610 reporting guidelines were last updated by the Monetary Authority of Singapore (MAS) ten years ago.
The new reporting regime for which MAS is yet to set the release date, will see a significant increase in the granularity and frequency of reporting.
Tierney said the new regulation will require 340,000 data points across 60 forms from each bank.
Currently, there are slightly over 4,000 data points. The taxonomy structure will organise these data fields and outline the relationships between each of them.
The partnering banks have agreed to exchange information on how they classify and report certain aspects of this data. For private banks in particular this will include how they report aspects of balance sheets and client holdings.
‘Over the next four months we are going to define all the data and the relationships that MAS is looking for and then we will make it available as an open industry standard to any other firm in Singapore that wants to use it,’ Tierney said.
‘Chief financial officials will now have the wisdom of the crowd or safety in numbers.’
Moreover, the taxonomy structure will also aid data analytics at private banks as it will be much easier to break down and re-assemble data than on excel sheets and forms.
The new structure will allow changes to data fields to be made much faster. The banks will only have to update or add certain fields when a new regulatory development comes up, rather than start from scratch, which they currently do for form-based reporting.
The service, freely available to the industry upon launch and non-proprietary to AxiomSL, will be available through on-premise deployment for bigger banks and available to smaller, tier 2 banks as software-as-a-service on the cloud.
‘MAS has become increasingly impressed with the initiative. We know they are in constant contact with other regulators who are using technology to reduce the burden of reporting,’ Tierney concluded.