Bank of Lithuania launches consultation on improvement of reporting procedures
The Bank of Lithuania invites Lithuania’s enterprises and organisations to express their views on the issues encountered in providing reporting data to the Bank of Lithuania and requests to submit proposals on how to improve this process. All answers are expected to be received by 14 August 2020.
“By applying advanced IT and data management solutions as well as by integrating various current data management practices implemented in the banking, credit union and other sectors, we can create benefits for both market participants and the central bank. Therefore, the Bank of Lithuania aims to review its internal data management practices, yet at the same time sets long-term strategic objectives for data management transformation. In order to achieve these objectives, a continuous dialogue with market participants is essential. We hope that the consultation will bring some very valuable insight,” said Gediminas Šimkus, Director of the Economics and Financial Stability Service of the Bank of Lithuania.
The central bank has proposed to consider possibilities for streamlining the reporting procedures. The current “push” approach could be replaced by a “pull” approach and reports could be generated automatically, based on detailed micro-data provided using a commonly agreed data model. Such changes would not only contribute to achieving the process efficiency and data quality objectives, but would also provide a solid ground for further increasing the data management maturity by employing advanced AI and machine learning technologies.
“This would allow market participants to provide the Bank of Lithuania with more accurate and timely reports, which would not only enhance the effectiveness of supervisory and statistical procedures, have a positive impact on the stability and credibility of the financial system, but would also positively contribute to the adoption of research and data-based monetary policy decisions,” said Paulius Šimkūnas, Manager of the Data Management Maturity Programme at the Bank of Lithuania.
During the RegTech event held by ROCKIT in 2020, the Bank of Lithuania presented a prototype of the solution that was tested with smaller financial market participants – electronic money institutions. The pilot project results have confirmed that there is considerable efficiency and quality potential for such changes in all sectors of the financial system.
The consultation paper Reform of the Reporting Procedures Applied in the Lithuanian Financial Sector (in Lithuanian) describes the current situation, identifies potential changes to the collection of reporting data as well as presents questions to financial market participants and their umbrella organisations, representatives of the Lithuanian public sector, enterprises and other parties concerned.