The Financial Stability Board has set a March deadline for financial companies to have "legal entity identifiers," in place for use in transactions. These codes, something like a social security number for banks, are to be used by the Office of Financial Research, created by Dodd-Frank, to spot systemic risk.
"Use of such codes across a bank's databases would let it aggregate customer account data for internal and regulatory reporting purposes and immediately see across-the-board vulnerabilities to sinking firms," explains Bank Technology News' Peggy Crossman.
But some say banks are struggling to meet the deadline. "They're finding in almost all cases that they're not ready for it,” says Fred Cohen of iGate. "Their infrastructure is not ready for it, the quality of their data is not ready for it."
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