From data reporting to data-sharing: how far can suptech and other innovations challenge the status quo of regulatory reporting?

Regulatory data are the backbone of effective financial sector supervision, but regulatory reporting is a complex and costly process. Different types of innovations try to make the regulatory reporting process more efficient and effective. This paper covers regulatory reporting initiatives at 10 financial authorities that are implementing or have implemented these innovations. Most authorities are standardising data needed to populate reports and/or requiring more granular data; half are modernising the means of data transmission; and a few are improving reporting formats or actively accessing data from financial institutions. These innovations are enhancing the quality of regulatory data and setting the basis for achieving the ultimate objective of moving towards the concept of "data-sharing" (ie on-demand monitoring of financial institutions). Although authorities' implementation of their regulatory reporting initiatives face a number of challenges and hence a widespread shift to regulatory data-sharing may take time, the trend towards more granular reporting is very likely to continue.

JEL classification: G20, G28, O31, O32