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, 2018

Sabine Lautenschläger of ECB spoke at the Ninth ECB Statistics Conference in Frankfurt. She talked about the importance of big data and the projects put in place to overcome shortcomings in data before the global financial crisis. In this context, she focused on the Banks’ Integrated Reporting Dictionary (BIRD), money market statistical reporting (MMSR) project, and AnaCredit project of ECB.

She stated that ECB started to collect MMSR data in 2016. The MMSR data include trade-by-trade granular data on four market segments. ECB receives full information on each trade—the maturity date, the rate, the counterparty, the collateral, and more. Data on the unsecured market segment are published every six to eight weeks. With this project, ECB took an important step toward the future, becoming a collector of “big data.” However, this was not done alone. The MMSR project involved the central banks of four countries—Germany, France, Italy, and Spain—and ECB. These institutions needed to cooperate with reporting banks. Cooperation happens not only between institutions, but also within institutions: the constant feedback loop between departments using the data and those preparing them leads to high-quality results. Cooperation also helps us to make reporting more efficient, which in turn reduces the burden on banks, said Ms. Lautenschläger .

ECB has worked on two fronts. With the ESCB Integrated Reporting Framework, the aim is to aggregate and harmonize reporting requirements of banks. With the Banks’ Integrated Reporting Dictionary (BIRD), banks are supported in organizing their data with a view to reporting it more efficiently. To this end, experts from national central banks work with experts from commercial banks to define the data and data transformations needed to comply with the reporting requirements for AnaCredit and the Securities Holdings Statistics. Therefore, banks that choose to participate are being helped to do a job they would otherwise have had to do on their own. She also highlighted that big data has brought tools and techniques that can be applied to rapidly process large sets of traditional data too. This makes it much easier to realize projects such as MMSR and AnaCredit.

AnaCredit, for instance, involves immense sets of extremely granular data, reflecting the far greater complexity and interconnectedness of today’s economy. To understand this complexity and assess the interconnections, a very detailed view is needed. This is exactly what AnaCredit gives. Thanks to the granular data it provides, ECB will be better able to understand what is driving credit growth, making it easier to know whether such growth is healthy or not. MMSR, on the other hand, is about speed: money markets move fast and never stop. So taking a snapshot every now and then does not suffice. Much faster data is needed and that is what MMSR provides. It allows us to constantly assess who lends how much money to whom in the money market and at what rates. This gives a very clear and quick picture of how the market is structured, how exposed players are to one another, and how vulnerable they are.

In short, during her speech, she focused on key ingredients that have been crucial in building up the good reputation of ECB over the past 20 years. The first ingredient is to have good data and to use them well when making decisions. The second is to ensure good cooperation and the third is to keep pace with the changing times.

 

Related Link: Speech

Keywords: Europe, EU, Banking, Reporting, Big Data, BIRD, MMSR, AnaCredit, ECB

Related Insights
News

BCBS Finds Liquidity Risk Management Principles Remain Fit for Purpose

BCBS completed a review of its 2008 Principles for sound liquidity risk management and supervision. The review confirmed that the principles remain fit for purpose.

January 17, 2019 WebPage Regulatory News
News

MAS Guidelines on Risk Mitigation Requirements for OTC Derivatives

MAS published guidelines on risk mitigation requirements for non-centrally cleared over-the-counter (OTC) derivatives contracts.

January 17, 2019 WebPage Regulatory News
News

HKMA Urges Local Banks to Start Working on FRTB Implementation

HKMA announced that it plans to issue a consultation paper on the new market risk standard in the second quarter of 2019.

January 17, 2019 WebPage Regulatory News
News

EBA Finalizes Guidelines for High-Risk Exposures Under CRR

EBA published the final guidelines on the specification of types of exposures to be associated with high risk under the Capital Requirements Regulation (CRR). The guidelines are intended to facilitate a higher degree of comparability in terms of the current practices in identifying high-risk exposures.

January 17, 2019 WebPage Regulatory News
News

BoE Publishes the Schedule for Statistical Reporting for 2019

BoE published the updated schedule for statistical reporting for 2019. The reporting institutions use the online statistical data application (OSCA) to submit statistical data to BoE.

January 16, 2019 WebPage Regulatory News
News

PRA Delays Final Direction on Reporting of Private Securitizations

PRA and FCA have delayed the issuance of final direction, including the final template, on reporting of private securitizations, from January 15, 2019 to the end of January 2019.

January 15, 2019 WebPage Regulatory News
News

SNB Updates Forms on Supervisory Reporting for Banks

SNB published Version 1.7 of reporting forms (AUR_U, AUR_UEA, AUR_UES, AURH_U, AUR_K, AUR_KEA, and AURH_K) and the related documentation for supervisory reporting on an individual and consolidated basis.

January 15, 2019 WebPage Regulatory News
News

BCBS Finalizes Market Risk Capital Framework and Work Program for 2019

BCBS published the final framework for market risk capital requirements and its work program for 2019. Also published was an explanatory note to provide a non-technical description of the overall market risk framework, the changes that have been incorporated into in this version of the framework and impact of the framework.

January 14, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for January 2019

EBA published answers to 13 questions under the Single Rulebook question and answer (Q&A) updates for this week.

January 11, 2019 WebPage Regulatory News
News

PRA Proposes to Amend Supervisory Statement on Credit Risk Mitigation

PRA published the consultation paper CP1/19 that is proposing changes to the supervisory statement (SS17/13) on credit risk mitigation.

January 10, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2473