The Bank for International Settlements (BIS) worked with FNA, a London-based financial analysis and simulation specialist, to create a prototype regulatory data and analysis platform.
Fed under his Innovation Center initiative, the BIS has partnered with the FNA and the Monetary Authority of Singapore to provide an integrated regulatory platform that will enable central banks to assess the impact of emerging credit risks on the financial system.
This prototype platform leverages data sources including news feeds, contagion algos, and interactive visualizations that will enable financial supervisors to react faster to credit risk events and take better policy decisions based on a broader and deeper body of supporting data.
Titled Project Ellipse, the two-stage project initially focused on how data-driven oversight could be enabled through machine-executable digital reports using a common cross-border data model.
In Phase 2, the project applied advanced data analytics, including network analysis, machine learning, and natural language processing, to unstructured data and granular loan reporting data. This stage of the program aimed to understand key correlations within the data set, the spread of risk and gauge market sentiment regarding borrowers.
The BRI intends to create a Project Ellipse collaborative community to share and develop this solution among financial authorities around the world.
FNA Founder and CEO Kimmo Soramäki said, “We know the transformative power of technology helps the financial community understand risk and take meaningful action. Project Ellipse represents a step change for the global regulatory community to collaborate on common solutions that can future-proof their data and analytical capabilities.
“Working around the world with many government institutions, we are absolutely committed to the development of global knowledge in this space and fully support the supranational efforts that have supported the Ellipse project. We are excited to see this unfold and deliver results. concrete to regulators.