A move to machine-executable digital regulatory reporting is closely linked with the need for data standards. There are significant benefits in the medium- to long-term for financial institutions and authorities to move towards a digital reporting framework, for the reasons highlighted in this background section.
Nevertheless, the initial investment and costs needed to achieve this outcome can steer decisions based on business incentives and risk appetite. While data standards initiatives would ultimately benefit from – and require – financial institutions and authorities to adopt a greenfield approach, the perceived scale of such an exercise could also deter stakeholders from committing to its implementation.
We propose that in the absence of global or national data standards, alternative options could be explored as a first step to bringing stakeholders closer to a common understanding of data needs. These options can include:
Bringing together authorities that have a mandate to collect data, to see if there are similarities or commonalities in the type of data being collected.
Engaging with industry on their use of data models and taxonomies for that specific product to explore wider extensibility.
Establishing small working-level projects using a narrowly scoped and specific use case and agreeing common data attributes and their definitions “in principle”.
Exploring ways in which the requirements for the reporting of those data can be published in programming languages.