2022: A year of growth and innovation for the Global LEI System

26 Ocak 2023

2022 marked another significant step in the global adoption of the Legal Entity Identifier (LEI). With an annual growth rate of 12.9% and the issuance of over 252,000 new LEIs worldwide, the Global LEI System has proven to grow strongly in maturity and reach. The Global LEI Foundation (GLEIF) supports this development through comprehensive transparency initiatives and regular reports highlighting trends and providing critical statistics on worldwide LEI usage.

Global LEI adoption reaches new milestone

In the first quarter of 2022, the number of active LEIs surpassed the two million mark for the first time. The year ended with a total of 2.19 million LEIs worldwide, confirming the growing importance of the LEI as the global standard for legal entity identification. This success is a vital sign of the trust companies and financial institutions place in the system.

New data formats and enhanced transparency

A key advance in 2022 was the implementation of new ROC guidelines that significantly expanded the LEI’s data format. The introduction of information on fund relationships, government entities, and legal entity events has increased the level of transparency in the global market. This makes the LEI an even more valuable tool for data consumers who need accurate and comprehensive information.

High-growth markets: China and Saudi Arabia in the lead

In the fourth quarter of 2022, China and Saudi Arabia were among the fastest-growing jurisdictions. China recorded an impressive growth rate of 32.1 %, reaching the target of 100,000 LEIs set by the Chinese authorities. Saudi Arabia also made significant progress thanks to the Saudi Credit Bureau’s LEI initiative, achieving growth of 25 %. These countries are thus setting benchmarks for successfully introducing the LEI in their respective regions.

Successful implementation of new reporting data

The number of legal entities reporting fund relationships increased by over 15,000 to 88,000 in the fourth quarter of 2022, underlining the global trust in the LEI and the increasing demand for transparent information in the financial sector. In addition, the number of reported government entities increased to 4,800 and international organisations to 27, reflecting the continued expansion of the LEI system.

Renewal rates and challenges in the fourth quarter

The LEI renewal rate in the fourth quarter of 2022 was 60.1%, a slight decrease compared to the previous quarter. As expected, December saw lower activity due to public holidays in many countries. Interestingly, Japan had the highest renewal rate in the world at 91%, followed by Luxembourg (88.5%), Finland (87.3%) and Norway (81.6%). These figures confirm a strong awareness of the importance of the LEI in these countries.

Outlook for the future of the LEI

The Global LEI Foundation will continue to work on integrating the LEI into new markets and industries. With the planned introduction of new reporting standards and the expansion of its scope, the LEI is well on its way to playing a central role in the digitalised global economy. 2023 will bring further exciting developments and milestones for this globally recognised identifier.