Page 31 - Annual Report 2021 EN
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Regulatory developments and new rules Supervision Technology (SupTech) XBRL reporting adaptations
and innovation
The QFCRA continued updating and strengthening its The division continued to implement changes to the
banking supervisory regime to align with the updated As part of the QFCRA’s goal to maintain our standing XBRL suite of regulatory returns to align with changes
Basel Committee on Banking Supervision (BCBS) as a world-class regulator, the division crafted arising from the adoption of IFRS 17 for Insurance
standardised approach for credit risk (SA-CR), a vision of the Supervision Process of the future contracts. Additionally, changes to the BANK/IBANK
standardised approach for equity investments in funds and embarked on a journey to embrace the latest Rules on operational risk, Standardised Approach for
(SA-EIF), the large exposures framework (LE framework), SupTech trends. These SupTech initiatives are Credit Risk and Counterparty Credit Risk will also
and standardised approach for counterparty credit risk summarised below. Several supervisory tools were necessitate an update of the XBRL-taxonomies and
(SA-CCR) standards. added to the QFCRA’s advanced analytics platform reporting forms.
over the year. These include the following:
QFCRA undertook a substantial review of BANK
to determine the changes necessary to: • Dashboards for risk-specific analysis and
predictive algorithms for automated risk ratings of
• implement the SA-CR and the BCBS guidance supervised banks
concerning credit risk practices, credit • Twitter sentiment tool that allows supervisors to
risk management and problem assets and gauge events relating to their respective firms and
provisioning that is necessary to support assess the impact on their firm’s risk profile
the implementation of the SA-CR; • An automated tool to cluster firms by their asset and
• implement the SA-EIF; liability distributions for data-driven peer analysis
• amend the large exposures framework in BANK
The in-house Financial Analysis and Innovation
to align with the latest BCBS LE framework;
team enhanced its capabilities and engaged two
• clarify rules related to the allocation of instruments to
additional data scientists to expand QFCRA’s
the banking book and trading book in line with the BCBS
capacity further to deliver digital transformation in
Fundamental Review of the Trading Book (FRTB); and
supervisory processes, oversight, and analysis.
strengthen prudential rules on the LE framework.
These rules will go into effect on 1 January 2023. QFCRA is a member of the Informal SupTech Network
The Supervision team will conduct quantitative hosted by the Financial Stability Institute (FSI)
impact studies and parallel runs throughout of the Basel Committee and participated in four
2022 to develop the new returns and guidance in sessions with other regulators where different use
readiness for the rollout of the revised rules. cases and experiences on adopting SupTech to
supervise authorised firms were shared effectively.
Some of the QFCRA initiatives were featured in
FSI’s “SupTech data analytics tools for prudential
supervision” report (December 2021).
