Research On Data Quality Management Of City Banks In Sichuan

One of the most significant lessons both banks and regulators learned from the global financial crisis that began in 2007 was that the management of banks' data quality was inadequate to support the broad management of financial risks. Because of weak data quality management, many banks lack the ability to calculate and aggregate the risk exposure efficiently and accurately. This had severe consequences to the banks themselves and to the stability of financial system as a whole. To improve banks'data quality and enhance banks'ability to manage data quality, CBRC published the Principles for the Data Quality Management of Banks in 2011.The Bank of Chengdu was established in 1996, since then, a growing number of city commercial banks appear in Sichuan. The total assets value of the 13 city commercial banks in Sichuan accounts for more than 10% of the total assets value of the financial institutions in Sichuan's banking industry till 2015. Therefore it draws our attention and makes us think about whether the data quality management of the 13 city commercial banks in Sichuan adequate enough to support their financial risks management and the stability of financial system?This paper investigates the data quality management of the 13 city commercial banks in Sichuan. It first introduces the motivation behind the research and reviews the existing literature in this area. After a detailed explanation of the theoretical background and definitions of the frame work, this paper gives a picture of the current situation that the data quality management of the 13 city commercial banks in Sichuan, and advantages they possess, from the perspective of banking regulation. Taking their data quality problems as examples, this paper points out the drawbacks of their data quality management, and provides some suggestions in organization and staffing, institution establishment, information technology system, data criteria, supervision, inspection, data quality evaluation, data usage and data storage at the end, for them to improve the data quality management.Comparing with other research, this paper has its uniqueness. In the objectives, we study the data quality management of the city commercial banks in Sichuan instead of the management activities in governments or foreign central banks. In the theory background, we determine the meaning and framework of banks'data quality and quality management in the perspective of banking regulation, combining with total quality management theory. In the detailed content, this paper analyses the real problems of the 13 city commercial banks as striking examples, which makes the research more suitable for implement in reality. However, this paper still has several limitations. It does not compare the data management of city commercial banks in Sichuan to that of the other city commercial banks out of Sichuan. Moreover, it does mot conduct the time series analysis because of the short time dimension. In addition, this paper does not build models to assess banks'data quality and quality management. Accordingly, these shortcomings are the research directions in the further work.