Transcript Data needs to assess the health of systemically important

Data needs to assess the health of
systemically important financial
institutions
Werner Bier
Deputy Director-General Statistics
IMF-FSB Users Conference on the Financial
Crisis and Information Gaps
Washington DC, 8-9 July 2009
European Systemic Risk Board (ESRB)
Ecofin conclusions on Strengthening EU financial supervision:
1. The Council agrees that an independent macro-prudential body
covering the financial sectors, the European Systemic Risk Board
(ESRB), should be established ... and charged with …
i. define, have access to and/or collect as appropriate, and analyse all
the information relevant for identifying, monitoring and assessing
potential threats and risks to financial stability in the EU that arise
from macro-economic developments and developments within the
financial system as a whole;
vi. liaise effectively with the IMF, the FSB and third countries.
5. The Council considers that the ECB should provide analytical,
statistical, administrative and logistical support to the ESRB, also
drawing on technical advice from national central banks and
supervisors.
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Current ECB macro-prudential analysis
•
Semi-annual Financial Stability Review (FSR) and annual
report on the EU banking sector
•
Data collection may be enhanced by an amended ECB legal
basis
•
Several data sources: FSR based on public disclosure (Pillar 3
of Basel II), without standard format
•
Improvements in public data disclosures in recent years, but
important limitations still exist
•
Future: key role of European Systemic Risk Board (ESRB)
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Focus on large financial institutions
•
Focus of FSR on Large and Complex Banking Groups
(LCBGs) and insurance corporations
•
Approach to enhance the reporting framework may
comprise two cornerstones:
1. Identify reporting institutions
2. Define reporting requirements that fulfil ESRB
requirements and minimise combined supervisory and
statistical reporting burden
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Defining reporting requirements I
Possible scope - beyond public disclosure - of data needed in the
EU to assess health of systemically important financial
institutions, also in relation to a systemic risk assessment:
•
Balance sheet, income statement, and solvency data. Broadly
harmonised by Committee of European Banking Supervisors
(CEBS), but further harmonisation necessary;
•
Data on liquidity risk, leverage, risk concentration, detailed
exposures/bilateral positions, etc.
•
Datasets are not harmonised, but harmonised data
definitions, frequency, timeliness and reporting formats are
required.
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Defining reporting requirements II
Additional data requirements:
•
Need to accurately capture cross-border, cross-sector and
cross-institution exposures;
•
Data on a security-by-security basis supported by the
Centralised Securities Database (CSDB) and on a loan-byloan basis;
•
Macro-Prudential Indicators (MPIs) and Euro Area Accounts
(EAA) as a link to the real sector.
It will be indispensable to further integrate statistical and
supervisory data sources
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International data comparability
•
Need for an appropriate alignment of EU and international
initiatives while the EU timetable is becoming more and more
concrete
•
Common reference to international statistical, accounting and
supervisory standards
•
Keep to the degree possible links with international statistics
(BIS’s consolidated banking statistics and the IMF’s Financial
Soundness Indicators)
•
Synergies with global initiatives, such as those of the IMF and
FSB
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