London - The world's top banks have three years to build up
a single picture of all their risks to help make the wider financial system
safer, global regulators said on Wednesday.
"The financial crisis that began in 2007 revealed that
many banks, including globally systemically important banks (G-SIBs), were
unable to aggregate risk exposures and identify concentrations fully, quickly
and accurately," the Basel Committee on Banking Supervision said in a statement.
G-SIBs refers to the world's top 28 banks like Goldman
Sachs, HSBC, Deutsche Bank and Morgan Stanley which are required to undergo
closer scrutiny and hold extra capital from 2016.
Such banks operate globally with many branches and
subsidiaries, making it harder and costlier to have a single snapshot of risks.
The Basel Committee, which groups regulators and central
bankers from 27 financial centres, set out principles these banks must
implement in full by January 2016 to strengthen their aggregation of data on
risks.
"These principles are a significant step towards
improving banks' risk management capabilities and they will also contribute to
G-SIBs' resolvability, hence reducing the potential recourse to
taxpayers," Basel Committee chairman Stefan Ingves said.
He spoke after the signing ceremony for a $45m loan for
Sudan from the Arab Monetary Fund (AMF), an Abu Dhabi development fund.
Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.