Semantic Bank Compliance

The Bank Regulation Ontology is an operational application of the Financial Regulation Ontology.

This ontology defines semantic rules to evaluate federal regulations. The purpose is operational for:

  • Banks  to determine regulatory treatment and to compile reports and forms. The focus is on CCAR the Comprehensive Capital Analysis and Review. We are starting with the Call Reports as an example .
  • Regulators to extract filing data, transform and load it into semantic data structures.

The Semantic Web is World Wide Web Consortium (W3C) extension of conventional web.
The standards promote common data formats and exchange protocols on the Web, most fundamentally RDF, the Resource Description Framework. In RDF everything is a triple of subject-predicate-object.

Regulator gives Notice of public Rulemaking

Ontology Web Language (OWL) standard extends RDF with semantics for classes, properties and individuals.

Beyond web applications, the semantic technology stack includes RDF database systems, SPARQL query language, inference and rules engine.

Bank compliance crosses the domains of Finance and Legal.

The Bank ontology imports, aligns and extends the dominant reference ontologies:

  • The Financial Industry Business Ontology (FIBO) is a collaboration between the Enterprise Data Management Council and the Object Management Group.
    FIBO holds the Fund’s reference data and financial information.
  • The Legal Knowledge Interchange Format (LKIF), a European Union project models legal rules of the kind found in legislation and regulations.
    LKIF holds the legislative context, text of laws and regulations and legal forms.

Bank and Financial Regulation Ontology rules connect the domains. They evaluate FIBO financial data to implement a regulatory requirement from LKIF.

This website is the publishing location for the Bank ontology files and provides the namespace for the resources. The diagram shows the family of modules for Financial Regulation Ontology.

Bank Regulation Ontology related sites and includes

Financial Regulation Ontology is the higher level, core ontology for all financial service providers. The ontology contains the text of:

United States Code
Title Chapter
12 Banks and Banking 17 Bank Holding Companies
53 Wall Street Reform and Consumer Protection

and

Code of Federal Regulations
Title Chapter Part
12 Banks and Banking II Federal Reserve System 217 Capital Adequacy of Board Regulated Institutions
225 Bank Holding Companies and change in Bank Control (Regulation Y)
252 Enhanced Prudential Standards

Semantic compliance is not an out of the box piece of software. It is a new standards based approach and methodology. All ontologies are Open Source with free MIT/GPL public license. Data and meta data management are part of the ontology. Requirements, models, mapping, lineage, business rules, everything expressed in RDF/OWL. Everything is a Triple.

To learn more: Implementing Financial Regulation Ontology tutorial on FinRegOnt, ontology documentation and OWL files on this site.