The financial industry has determined that it needs global standards for all participants and financial products that make up the global financial services supply chain in order to better understand and anticipate systemic risk. After the collapse of Lehman Brothers in September 2008, it became apparent that regulators had no way to understand the systemic risk that Lehman’s bankruptcy posed to the U.S. economy and the global economy.
Standardized Identification System: LEIs
In order to avoid another global economic crisis, regulators and stakeholders in the financial services sector around the world are working towards a set of identification standards – a global “legal entity identifier” (LEI) system. LEIs will enable regulators to have an “early warning system” to detect approaching financial crises.
The LEI system will provide effective tracking and tracing of financial information among financial institutions and corporations throughout the world by issuing a unique, unambiguous identification number to each of the organizations participating in the global financial services supply chain, and tracking associated reference data.
GS1 Brings Expertise to the LEI Initiative
GS1 is ideally positioned to assist the financial services industry with its LEI initiative with:
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Beyond helping specifically with the LEI Implementation, GS1 can partner with SWIFT and others in the following areas:
GS1’s Federated Model: Knowledge We Can Share
GS1 operates under a federated governance model through its 110 country-based Member Organizations. This model:
GS1’s Role in Cash Handling
Within financial services, the GS1 system already supports the ordering and depositing of cash for banks and other commercial enterprises in Germany, Italy, Spain, and France.
Contact GS1 and Shape the Future of Financial Services
For more information or to contribute your expertise to help us develop better and more reliable solutions using global standards, contact + 1 937.435.3870.