Golden source data
Also called single source of truth, authoritative data source, golden record
Golden source data is the single authoritative version of a data item, such as a client record, legal entity or instrument price, that every system in a firm treats as correct. Other copies take their values from it. Banks use golden sources to keep risk, finance and regulatory reports consistent.
How it works
A firm names one system as the master for each data domain, such as clients, products, counterparties or market prices. A data owner is accountable for its quality. Downstream systems subscribe to the golden source instead of keeping their own versions, and any local change goes back to the master. Reconciliations flag copies that drift from the authoritative record.
Regulators judge firms on whether different reports tell the same story. When finance, risk and compliance hold separate versions of the same client, capital, exposure and screening figures disagree. BCBS 239 asks banks to aim for a single authoritative source for risk data per type of risk, and the ECB's 2024 guide expects documented lineage back to those sources.
The rules
Expects banks to strive for a single authoritative source for risk data per type of risk, with reconciliation to accounting data.
Global systemically important banksExpects complete data lineage for critical risk data, from data capture through to the figures in risk reports.
Significant institutions supervised by the ECBCommon questions
Is a golden source the same as a single source of truth?
They are used interchangeably. Golden source usually refers to the specific system that holds the master record for a data domain. Single source of truth describes the wider aim of one agreed version of each fact.
Do regulators require a golden source?
No rule uses the term. BCBS 239 asks banks to strive for a single authoritative source for risk data per type of risk, and supervisors test whether reported figures reconcile and trace back to source.
How does golden source data help compliance?
One master client record means screening, monitoring and regulatory reporting all use the same names, identifiers and risk ratings. That cuts reconciliation work and the risk of conflicting figures in returns.
Our coverage
News and analysis on regulatory reporting from RegTech Post.
Read the coverage →RegTech PostWhen Data Stays in Silos, Risk Rises: Lessons from Real CasesRead the article →RegTech PostHow to Break Down Silos in Compliance Teams and Reclaim ControlRead the article →
