EU loan market needs to react to increasing data quality demands

Author: Olly Jackson | Published: 5 Oct 2018

Loan issuers need to step up and improve their data quality as the European Commission and the European Central Bank (ECB) are stepping up oversight and enforcement in the area.

"The European Commission is currently carrying out a fitness check of supervisory reporting requirements in the financial sector," a Commission official told IFLR. "The aim is to streamline and improve the overall consistency of the EU supervisory reporting framework requirements while ensuring high quality of data to help authorities achieve their supervisory objectives in a more effective and efficient way. Financial identifiers can play an important role in this."

Increased action from the EU institutions will be via the AnaCredit (analytical credit datasets) project, which contains information on individual bank loans in the region at the end of last month, and the upcoming Securities Financing Transactions Regulation (SFTR), expected to be enforced late 2019.

"Standards need to evolve because things...