General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
July 10, 2017

IMF published a working paper that identifies common international threads in the data needed for financial stability analysis and suggests ways to address these. The paper discusses how financial stability is analyzed, identifies the datasets typically used in financial stability analysis, addresses the data gaps that have emerged, and sets out proposals for how economic and financial statistical manuals can better meet the financial stability data needs, without undermining the conceptual framework.

The paper discusses the governance arrangements that have emerged for financial stability assessment. This includes tools such as broad-based capital tools (for example, dynamic provisioning, countercyclical capital buffers, and time-varying leverage ratio caps); sectoral capital and asset-side tools (for example, foreign currency loans to corporates, caps on loan-to-value, debt-service-to-income, and loan-to-income ratios); and liquidity-related tools (such as the liquidity coverage ratio); and the tools to contain maturity mismatch (such as core funding ratios) and price-based tools (such as a levy on volatile funding). Other policy tools include capital surcharges for global and domestic systemically important institutions and increases in risk-weights and large exposure or concentration limits. The report also highlights that stress tests have increasingly become integral to financial stability analysis as a method of testing the resilience of the financial sector. There remains room for improvement to use stress testing as a tool for macro-prudential risk assessment going beyond its traditional use for micro-prudential supervision.

 

The report also highlights that policies have been developed to address potential financial stability risks arising from non-bank activities, such as central clearing of over-the-counter derivatives, and from market infrastructure, such as ensuring the resilience of central counterparties (for example, margining requirements and liquidity resources). However, the policy applications of financial stability analysis and the tools used to meet financial stability needs are still developing. The paper concludes that more work is required to meet financial stability analysis data needs, not least in implementing the initiatives underway. This includes data on shadow banking, capital flows, and corporate borrowing, as well as the increased demand for granular data. The paper notes that, while the specific datasets used can differ across country and over time, common patterns of data use emerge. 

 

Related Link: Working Paper on Financial Stability Analysis (PDF)

Keywords: International, Banking, Securities, Insurance, Financial Stability Analysis, IMF

Related Insights
News

US Agencies Propose Revisions to FFIEC Reports 031, 041, 051, and 101

US Agencies (FDIC, FED, and OCC) propose to extend for three years, with revision, FFIEC 031, FFIEC 041, FFIEC 051, and FFIEC 101.

February 21, 2019 WebPage Regulatory News
News

OFR Adopts Data Collection Rule on Centrally Cleared Repo Transactions

OFR adopted a final rule to establish a data collection covering centrally cleared funding transactions in the U.S. repurchase agreement (repo) market.

February 20, 2019 WebPage Regulatory News
News

FHFA Finalizes Rule on Federal Home Loan Bank Capital Requirements

FHFA published, in Federal Register, the final rule to adopt, as its own, portions of the regulations of the Federal Housing Finance Board pertaining to the capital requirements for the Federal Home Loan Banks.

February 20, 2019 WebPage Regulatory News
News

PRA Publishes PS4/19 on Loss-Absorbency Mechanism Under Solvency II

PRA published a policy statement (PS4/19) that provides feedback on responses to the consultation paper (CP27/18) on adjusting for the reduction of loss absorbency where own fund instruments are taxed on write down under Solvency II.

February 20, 2019 WebPage Regulatory News
News

SRB Publishes Framework for Performing Valuations in Resolution

The framework provides independent valuers and the general public with an indication of the expectations of SRB on the principles and methodologies for valuation reports, as set out in the legal framework.

February 19, 2019 WebPage Regulatory News
News

BIS Paper on Effect of Securities Lending on OTC Market Liquidity

BIS published a working paper that studies how securities lending affects over-the-counter market (OTC) liquidity.

February 19, 2019 WebPage Regulatory News
News

US Agencies Extend Consultation Period for the Proposed SA-CCR

US Agencies (FDIC, FED, and OCC) extended the comment period for a proposed rule to update their standards for how firms measure counterparty credit risk posed by derivative contracts.

February 18, 2019 WebPage Regulatory News
News

FED Extends Consultation Period for Stress Testing Rule

FED has published in the Federal Register a notice proposing amendments to the company run and supervisory stress test rules.

February 15, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for February 2019

EBA published answers to two questions under the Single Rulebook question and answer (Q&A) updates for this week.

February 15, 2019 WebPage Regulatory News
News

SEC Proposes Rule on Risk Mitigation Techniques for Uncleared SBS

SEC proposed a rule that would require the application of specific risk-mitigation techniques to portfolios of security-based swaps (SBS) that are not submitted for clearing.

February 15, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2623