Abstract

As financial systems become more complex and interconnected, maintaining consistent and reliable granular data is essential to help formulate effective policy making. However, collecting large volume of data from multiple institutions often become a key challenge for the authorities, particularly in ensuring its accuracy. To address this, Bank Indonesia has developed the Integrated Commercial Bank Reporting System (LBUT) as a metadata-based reporting system which can facilitate cross-field validation and data matching.
LBUT collects data at a granular level, including per transaction as well as per counterparty. For information such as spot and derivative transactions, interbank money market transactions, and secondary market securities transactions, rule based matching validation is applied to verify the reporting accuracy from two sides of reporters. Each information is supported by key identifiers, such as securities transaction numbers, which allow the system to link two sides of reports. These linked reports are then compared across attributes e.g. nominal amounts, interest rates, currencies, maturities, to detect inconsistencies and they will not be accepted into the system until matching conditions are fulfilled.
In this paper, we share practical lessons from implementing bilateral matching in central bank’s dual side transaction reporting system and shows that well designed validation can improve data quality while keeping reporting process efficient.