The rapid development of China's financial industry has seen an increase in financial institutions and financial business innovative products, which brings challenges to financial regulation. To prevent financial risks and maintain the stable development of the financial industry, the nation is tightening its regulation of financial institutions. Regulatory bodies with oversight of banks such as the People's Bank of China (PBoC), the China Banking and Insurance Regulatory Commission (CBIRC), the State Administration of Foreign Exchange (SAFE), and the National Audit Office of the People's Republic of China (CNAO) have also issued notices requiring banks to complete data reporting. Thus, financial institutions need to build a unified regulatory compliance system to meet regulatory requirements for different businesses.

In performing their supervisory duties, regulators adopt a combination of on-site inspection and off-site regulation, with off-site regulation as the main method. The main approach for off-site regulation is the submission of various types of banking regulatory data. Regulatory data has been an important tool for regulatory authorities to understand the data quality in financial institutions. After the publishing of the Notice Concerning Special Governance of Regulatory Data Quality, regulatory authorities enhanced the data governance of financial institutions, with ever-tighter supervision and stricter punishment.