9.6 IT database requirements in respect of collateral

Credit institutions should have databases of transactions to enable the proper assessment, monitoring and control of credit risk, to respond to requests from management and supervisors, and to enable the provision of information in periodic reports and other timely and comprehensive documentation. In particular, databases should comply with the following requirements:

• a) sufficient depth and breadth, in that they cover all the significant risk factors;
• b) accuracy, integrity, reliability and timeliness of data;
• c) consistency – they should be based on common sources of information and uniform definitions of the concepts used for credit risk control;
• d) traceability, such that the source of information can be identified.

These databases should include all the relevant information on properties and other collateral for the credit institutions’ transactions and on the links between collateral and specific transactions.