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

Under the BCBS 239 implementation approach, how should supervisors treat a bank newly designated as a G-SIB with respect to the principles?

A newly designated G-SIB is expected to comply with the data aggregation and reporting principles within a transition period of about three years from designation, while supervisors monitor its progress. Compliance is not voluntary, not immediate, and not dependent on the home country lacking domestic rules.

  1. AIt has no obligation to comply until it voluntarily chooses to
  2. BIt should comply with the principles within a transition period of about three years after designation, with supervisors monitoring progressCorrect
  3. CIt must comply from the day of designation without any transition
  4. DIt is exempt if its home country has not yet adopted domestic banking regulations

Explanation

BCBS guidance expects banks identified as G-SIBs to comply with the principles within three years of designation, and supervisors monitor that progress. Voluntary adoption, zero transition, or exemption based on domestic rules are not the stated approach.

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