FSRA is seeking to modernize the way it collects data from credit unions to improve the utility of the data for risk assessment purposes in support of Principles Based Regulation (PBR).
Roll out of the new initiative will begin in the summer of 2023 and will progress in waves with a tentative goal of having all credit unions on the system by the end of June 2024. Since the launch of the current eFiling system in 2011, data requirements for credit unions were last updated in 2017. The current data form does not support credit unions’ risk assessment under the new Risk Based Supervisory Framework implemented in April 2022.
The Enhanced Data Collection (EDC) initiative will modernize the way data is collected from Ontario credit unions and caisses populaires. EDC will bring about two primary changes:
- The collection of instrument-level data, such as loans and deposits data.
- The migration of all existing reporting, including new instrument-level data, into one channel.
There are many benefits to this approach:
- automating data collection will reduce the burden for credit unions
- the potential for reduced capital requirements (for certain verifiably lower risk assets, beyond the current capital risk weightings)
- improved Deposit Insurance Reserve Fund (DIRF) adequacy assessment
- better data and reporting back to credit unions
For the new instrument-level data, credit unions are only expected to provide data points which are available at the time of launch. Within one year of implementing the EDC, the instrument-level data is expected to be sufficient to replace the existing data on the Monthly Information Return (MiR) and Annual Information Return (AiR).
Afterwards credit unions are asked to progressively add more data points in alignment with their future capacity and supervisory needs.
Regulatory Data Standard (RDS)
A Regulatory Data Standard (RDS) is being developed to document and standardize data that can then be used for regulatory and risk purposes.
An overview of the EDC initiative can be found at the following link: EDC Overview
FSRA has consulted with the Technical Advisory Committee (TAC) for Credit Union Data Strategy and Digital Transformation on EDC and the development of the Regulatory Data Standard. More information on the TAC process can be found here: Technical Advisory Committee (TAC) for Credit Union Data Strategy and Digital Transformation
FSRA is planning to release a public consultation on the draft Regulatory Data Standard in January 2023. The purpose of this consultation is to get feedback on the draft Regulatory Data Standard which can be found below:
- Upcoming consultation - RDS V5 (Draft) Instrument-Level Data Only [XLSX]
The data will be collected by way of an automated system that extracts the data from credit union records.