Addressing Data Gaps
Authorities with responsibility to identify, monitor and take action to reduce systemic risks and enhance the resilience of the global financial system need better, homogenous and consistent data, at both the national and international level, to ensure that they can recognise and address the build-up of risks in a timely manner.
To bridge the existing information gaps on the risks posed by global systemically important financial institutions, the G-20 finance ministers and central bank governors called on the FSB in November 2009 to improve data collection and sharing in this area, in close consultation with the IMF (recommendation 8 and 9 in the November 2009 joint IMF-FSB Report to the G20 “The Financial Crisis and Information Gaps”).
The FSB is developing a common data template to support improved collection and sharing of information on linkages among global systemically important financial institutions, their exposures to different sectors and markets and, ultimately, the structure and evolution of the global financial networks.
The initiative is being implemented as follows:
- Phase 1 started in March 2013 and it is focused on the exposures of G-SIBs to their largest counterparties and to major risk dimensions, with a harmonized collection and pooling of improved consolidated data on largest bilateral counterparty credit relationships with banks and non-banks, as well as their consolidated aggregated exposures;
- Phase 2 will start in mid-2015, filling a substantial data gap by adding granular information on G-SIBs’ bilateral liabilities, to assess the concentration of their largest funding providers (banks and non-banks) and their major funding dependencies (e.g. use of wholesale funding);
- in Phase 3 the common template will include granular and comparable aggregate consolidated balance sheet data broken down by country, sector, instrument, currency and maturity. A Quantitative Impact Analysis in collaboration with reporting banks is revising the proposed template and guidelines and validating the value added of the information for financial stability purposes. The template will be finalised in early 2015 and reporting is planned from August 2016, with end-June reference date. Additional consultation with industry during Phase 3 is anticipated.