The Monetary Authority of Singapore (MAS) and BIS Innovation Hub Singapore Centre have developed a new prototype platform that integrates regulatory data and analytics.
Known as Project Ellipse, the platform successfully demonstrates how regulatory and other data such as articles and news can be integrated into a single platform to help regulatory authorities identify potential risks to individual banks and the banking system.
BIS will launch an Ellipse collaboration community to share, further test, customise and scale this solution across regulatory authorities around the world. The Ellipse prototype is the first to be published on BIS Open Tech, a new platform for sharing statistical and financial software as public goods, thereby promoting international cooperation and coordination.
Ross Leckow, acting head of the BIS Innovation Hub said, “Regulators need accurate and timely information to assess emerging risks and to make informed supervisory decisions. Project Ellipse has now developed a potential tool for the global regulatory community to further explore and collaborate on common solutions that can improve the data and analytical capabilities of regulatory authorities It has the potential to be a game – changer by giving supervisors access to more and better data, structured and unstructured, with greater predictive insights than ever before, it can be scaled to provide realtime analysis on a national or cross border supervisory basis”.
Hern Shin Ho, deputy managing director of financial supervision at MAS said, “Recent technological advancements have opened up possibilities for supervisors to leverage on more granular, timely and varied datasets to significantly improve supervisory effectiveness. Project Ellipse clearly demonstrates that collection and use of such datasets need not be prohibitive, but can be codified, efficient, cost-effective and potentially scalable even on a cross-border basis. MAS is adapting the prototype for our own supervisory needs. I hope other supervisors will similarly find it useful and look forward to further joint initiatives to develop common SupTech solutions for supervisors”.
With the support of the Bank of England, the International Swaps and Derivatives Association, Accenture and Financial Network Analytics, the project was undertaken in two phases:
• Phase one of the project investigated how machine executable digital reporting could enable data-driven supervision, using a cross-border common data model.
• The second phase examined how advanced analytics such as machine learning and natural language processing could be applied to unstructured and granular reporting data. This allows identification of risk correlations and sentiment analysis, so as to alert supervisors in real time to issues that may need further investigation.
Re-disseminated by The Asian Banker