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 comprehensive, 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 information gaps revealed by the financial crisis on the risks posed by global systemically important financial institutions, the G20 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 Financial Crisis and Information Gaps, a joint IMF-FSB report to the G20 published in November 2009 that launched the G20 Data Gaps Initiative (DGI)). A second phase of the G20 DGI, aimed to strengthen and consolidate the progress achieved by the first phase of DGI and promote the regular flow of high quality statistics for policy use, was launched in 2015 and includes the regular collection and appropriate sharing of data about global systemically important banks (G-SIBs) as its recommendation 4.
The FSB has developed common data templates to support improved collection and sharing of information on linkages among G-SIBs, 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 focused on the exposures of G-SIBs to their largest counterparties and to major risk dimensions, with a harmonised 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 started in 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);
Phase 3 will include a common template with granular and comparable aggregate consolidated balance sheet data with details by country, sector, instrument, currency and maturity. The template was finalised in 2016 and quarterly reporting is now being phased-in and expected to be fully up and running in most jurisdictions with data as of 2018 Q1.