In order to respond to the development of international supervisory technology and establish effective and accurate supervision mechanisms, the Financial Supervisory Commission (FSC) has been actively encouraging banks to fully adopt the API reporting method. After a 3-year trial period, as of January 2022, all national banks have fully adopted API to automatically report all financial statements via the Financial Examination Bureau's "Financial Supervisory Report System for Banks and Bills Finance Companies" (the single reporting system). This system has effectively improved reporting efficiency and security. The FSC also encourages banks to actively integrate internal automation into their API reporting mechanism, so as to maximize the synergy generated by automated reporting, help realize smart regulatory reporting, and move towards a new era of supervisory technology.
Adoption of API reporting by banks brings a number of benefits. Not only can it improve reporting efficiency, security, and quality, but it can also help to promote future adoption of the granular data reporting advocated by international supervisory authorities, support more efficient analysis of digital supervisory information, and enable prompt detection of abnormalities and risks. Detailed benefits are described below:
(1) Improve reporting efficiency:
Automatic declaration through API interface can reduce the burden of manual work in the bank's front-end processing of declarations, and improve declaration efficiency.
(2) Improve reporting quality:
API reporting can integrate the automatic output of internal reporting data, maximize the synergy of automated reporting, avoid time-consuming manual input or input errors, and ensure the correctness of reporting information.
(3) Improve reporting security:
In addition to encrypted transmission, the API reporting mechanism adopts multiple security mechanisms, which is more secure than the original manual upload method.
(4) Contribute to the future adoption of API granular reporting:
Familiarizing financial institutions with the API reporting mechanism will help facilitate the future adoption of granular data reporting operations, improve data collection efficiency, reduce duplicate reporting, enable supervisory authorities to use data more flexibly, and facilitate prompt detection of abnormalities and risks, thereby achieving "precise and accurate supervision".
In order to accelerate the promotion of digital supervision reporting, the FSC has asked the Taiwan branches of foreign banks and mainland banks in Taiwan to actively cooperate by fully adopting the API reporting method from January 2023, so as to realize the goal of digital transformation of supervision as soon as possible.