Featured Product

    ECB Paper Examines Data Gaps in European Macro-Prudential Database

    December 20, 2019

    ECB published a paper that discusses a major initiative of ECB and the European System of Central Banks (ESCB), in cooperation with ESRB, to assemble a comprehensive statistical repository in the form of the Macro-prudential Database. The paper sets out the rationale for setting up the database, describes the structure and key features of the database, and provides a broad overview of its indicators. Examples illustrate how the Macro-prudential Database is used for monitoring purposes and econometric modeling. Relevant data confidentiality issues have been also dealt with. Finally, the paper describes the remaining data gaps and the expected future enhancements of the database.

    One of the conclusions presented in the paper is that development and implementation of the Macro-prudential Database has shown how cooperation and the involvement of financial stability experts and statisticians can create synergies and add value in terms of conceptual analysis, technical infrastructures, and the collection and compilation of data. The Macro-prudential Database became operational in October 2015, since when it has been accessible through the Statistical Data Warehouse, or SDW, of ECB. The public version comprises about 300 relevant country-level indicators grouped into seven domains related to the macro economy and financial markets, debt and credit, residential and commercial real estate, the banking sector, the non-banking sector and interconnectedness. The Macro-prudential Database indicators are a collection of the most frequently used standard indicators for macro-prudential policy analysis as well as indicators calculated on the basis of various requirements for the purpose of risk identification and monitoring of euro area countries.

    With the creation of the Macro-prudential Database, an important first step was taken, but more remains to be done. Data gaps still exist, especially in certain domains of the Macro-prudential Database. These gaps will have to be filled, always being conscious of the burden on data compilers and the need to balance the benefits and costs of additional data. Progress in removing data gaps will, of course, be aligned with the developments in the main international standards and initiatives, such as the G-20 Data Gaps Initiative. Data gaps appear to still be particularly relevant in the area of residential and commercial real estate. A further important challenge will be continuing to expand coverage of non-bank credit intermediation, given the growing relevance of the “shadow-banking” sector. Progress in the EU-driven project aimed at developing a Capital Markets Union will make this area even more relevant. The Macro-prudential Database will be reviewed regularly to ensure it remains a robust and harmonized data system capable of satisfying the information needs of macro-prudential analysts and policymakers.

    The potential of existing aggregate statistics has largely already been incorporated into the development of the Macro-prudential Database. However, the closing of the mentioned data gaps will have to wait for the availability of new indicators that would be derived from granular datasets like AnaCredit, Securities Holding Statistics (SHS), Money Market Statistical Reporting (MMSR), and European Market Infrastructure Regulation (EMIR) data, which are all currently in the early stages of data collection. Therefore, it is expected that, in the coming years, a whole battery of new indicators based on transaction-level data will further enrich the Macro-prudential Database. Further improvements toward the closing of data gaps in the real estate sector could be expected in 2021, following implementation of the ESRB Recommendation on closing real estate data gaps and in connection with the AnaCredit project, which will provide granular loan information covering the non-financial corporation sector. To meet continuously evolving user needs, the Macro-prudential Database is regularly reviewed, making it an evolving and adjustable product.

     

    Related LinkECB Paper (PDF)

    Keywords: Europe, EU, Banking, Insurance, Securities, Statistics, Macro-prudential Database, Statistical Data Warehouse, Data Gaps Initiative, Macro-prudential Policy, AnaCredit, SHS, Commercial Real Estate, ESCB, ESRB, ECB

    Related Articles
    News

    BIS Bulletin Examines Cognitive Limits of Large Language Models

    The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.

    January 25, 2024 WebPage Regulatory News
    News

    ECB is Conducting First Cyber Risk Stress Test for Banks

    As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.

    January 24, 2024 WebPage Regulatory News
    News

    EBA Continues Momentum Toward Strengthening Prudential Rules for Banks

    A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.

    January 24, 2024 WebPage Regulatory News
    News

    EU and UK Agencies Issue Updates on Final Basel III Rules

    The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards

    December 19, 2023 WebPage Regulatory News
    News

    Industry Agency Expects Considerable Uptake for Swiss Climate Scores

    The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.

    December 18, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Climate Risks, Issues Other Updates

    The Basel Committee on Banking Supervision (BCBS) launched consultation on a Pillar 3 disclosure framework for climate-related financial risks, with the comment period ending on February 29, 2024.

    December 18, 2023 WebPage Regulatory News
    News

    US Government Moves to Regulate Development and Use of AI Models

    The U.S. President Joe Biden signed an Executive Order, dated October 30, 2023, to ensure safe, secure, and trustworthy development and use of artificial intelligence (AI).

    December 18, 2023 WebPage Regulatory News
    News

    MAS Launches Gprnt Digital Platform for ESG Reporting for SMEs

    The Monetary Authority of Singapore (MAS) launched an integrated digital platform, Gprnt, also known as “Greenprint.”

    November 29, 2023 WebPage Regulatory News
    News

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News
    News

    NGFS Publishes Phase IV Long-term Climate Scenarios for Banks

    The Network for Greening the Financial System (NGFS) published its latest set of long-term climate macro-financial scenarios (Phase IV) for assessing forward-looking climate risks.

    November 28, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8947