Highly sophisticated analytical techniques for use in financial sector regulatory and supervisory tasks, both from the micro- and macro-prudential perspectives, continue to emerge. These are allowing financial sector authorities to enhance the depth of the various analyses they perform on either a regular or ad hoc basis, as well as to look at potential problems in financial institutions from new angles. Many of these newer techniques require significant and growing amounts of granular credit data, with individual- and/or household-level data being used in some cases. Key challenges: The ever-growing and increasingly complex data of financial sector authorities require a higher degree of readiness by CRSPs, especially with regard to ensuring seamless and timely reporting of the relevant data to the authorities. A higher degree of readiness by CRSPs should not have significant implications on costs and overall efficiency. CRSPs should aim at fully observing General Principle 2, in particular the guidelines on reliability and efficiency. The newer analytical techniques being used by financial sector authorities and also the eventual necessity these authorities may have to act in the market place in a timely manner and based on the most actual circumstances require credit data in CRSPs to be updated more frequently. and data providers should strive at fully observing General Principle 1, in particular as regard the guidelines on timeliness of data and on accuracy of data. Financial sector authorities need to be transparent on the use or intended use of granular credit data collected from CRSPs, in particular when sensitive or potentially sensitive data on individuals/households is involved (e.g., data on an individual’s income, or data used to derive a proxy of an individual’s income). Financial sector authorities should disclose the relevant policy objectives along with the specific purposes for which they are collecting sensitive
Highly sophisticated analytical techniques for use in financial sector regulatory and supervisory tasks, both from the micro- and macro-prudential perspectives, continue to emerge. These are allowing financial sector authorities to enhance the depth of the various analyses they perform on either a regular or ad hoc basis, as well as to look at potential problems in financial institutions from new angles. Many of these newer techniques require significant and growing amounts of granular credit data, with individual- and/or household-level data being used in some cases. Key challenges: The ever-growing and increasingly complex data of financial sector authorities require a higher degree of readiness by CRSPs, especially with regard to ensuring seamless and timely reporting of the relevant data to the authorities. A higher degree of readiness by CRSPs should not have significant implications on costs and overall efficiency. CRSPs should aim at fully observing General Principle 2, in particular the guidelines on reliability and efficiency. The newer analytical techniques being used by financial sector authorities and also the eventual necessity these authorities may have to act in the market place in a timely manner and based on the most actual circumstances require credit data in CRSPs to be updated more frequently. and data providers should strive at fully observing General Principle 1, in particular as regard the guidelines on timeliness of data and on accuracy of data. Financial sector authorities need to be transparent on the use or intended use of granular credit data collected from CRSPs, in particular when sensitive or potentially sensitive data on individuals/households is involved (e.g., data on an individual’s income, or data used to derive a proxy of an individual’s income). Financial sector authorities should disclose the relevant policy objectives along with the specific purposes for which they are collecting sensitive
credit_reporting_in_financial_regulation_and_supervision-for_public_consultation.docx