The Bangko Sentral ng Pilipinas (BSP) will conduct data-gathering “baselining exercise” in aid of rules being drafted for banks and non-banks’ Data Governance and Ethical Use of Data, said BSP Governor Benjamin E. Diokno.
“The baselining exercise will look into BSFIs’ (BSP supervised financial institutions) processes vis-à-vis the global standards set under Basel Committee on Banking Supervision (BCBS) 239 Principles,” explained Diokno in a virtual press briefing.
The proposed policy will incorporate the BCBS and the purpose of BCBS 239 to “strengthen risk data aggregation capabilities and internal risk reporting practices to enhance the risk management and decision making processes among banks.”
“BSFIs shall adopt BCBS 239 standards as we envision a financial ecosystem that is inclusive both from the supply and demand sides. This entails the entry of players, bank and non-banks alike,” said Diokno.
The incoming data governance rules ensure there are necessary safeguards as the BSP accelerates the shift to digital transformation.
“In the digital realm, we know that consumer data are a valuable and oftentimes, a monetized asset. Hence, we have what we call ‘data as currency’,” said Diokno. “The wider use of e-payment platforms should therefore be supported by robust infrastructure and governed by sound data standards.”
“As such, data governance standards aim to protect the right of financial consumers to expect that their data are secured and kept confidential,” he added. “This includes the transaction itself, and relevant information disclosed in the course of a transaction. The standards aim to ensure that financial service providers conduct business ethically and do not engage in practices that may be detrimental to the consumer.”
The BSP is currently drafting the policy on data governance and is expected to release a discussion paper before June this year.