Skip to content

FRM Part I · FRM Exam Part I · Principles for Effective Data Aggregation and Risk Reporting

A bank has just been designated as a global systemically important bank (G-SIB). According to BCBS 239, what is the expected timing of compliance with the principles for the bank?

A newly designated G-SIB is expected to comply with the BCBS 239 principles within three years of its designation. The principles do not set a five-year optional period or link compliance to a later Basel capital accord.

  1. AWithin three years of being designated as a G-SIBCorrect
  2. BCompliance is required only after the next Basel capital accord is implemented
  3. CCompliance is optional for the first five years and then mandatory
  4. DWithin one year of the bank's next annual report

Explanation

BCBS 239 required G-SIBs to comply by January 2016, and banks designated as G-SIBs subsequently should comply within three years of their designation. The other timelines are not part of the principles.

Did you get it right without looking?

One question tells you little. A timed set on Principles for Effective Data Aggregation and Risk Reporting shows your real accuracy, how long you take and where you lose marks.

Practise Principles for Effective Data Aggregation and Risk ReportingFree diagnostic mock

More Principles for Effective Data Aggregation and Risk Reporting questions