Financial Stability Analysis: Insights Gained from Consolidated Banking Data for the EU

28 Pages Posted: 9 Feb 2013

See all articles by Stefano Borgioli

Stefano Borgioli

European Central Bank (ECB)

Ana Gouveia

Independent

Claudio Labanca

Monash University - Department of Economics

Date Written: January 4, 2013

Abstract

This occasional paper explores the Consolidated Banking Data (CBD), a key component of the ECB statistical toolbox for financial stability analysis. We show that non-consolidated, host-country Monetary Financial Institutions (MFI) balance sheet data, which constitutes a key source of input into monetary analysis, are a rather weak proxy for consolidated, home-country data and therefore cannot easily substitute CBD for the purposes of macro-prudential assessment. In addition, it is argued that, notwithstanding the relevance of large banks, medium-sized and small banks must also be taken into account in financial stability analysis, given their relevance in several EU countries and their different business models. A discussion follows on how aggregate data, broken down by bank size, can be used to complement micro data, in particular by signalling where and what to look for, again highlighting the differences between large banks on the one hand and small and mediumsized banks on the other.

Keywords: Macro-prudential analysis, consolidated banking data, banking indicators

JEL Classification: C82, G21

Suggested Citation

Borgioli, Stefano and Gouveia, Ana and Labanca, Claudio, Financial Stability Analysis: Insights Gained from Consolidated Banking Data for the EU (January 4, 2013). ECB Occasional Paper No. 140, Available at SSRN: https://ssrn.com/abstract=2184844

Stefano Borgioli (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Ana Gouveia

Independent ( email )

Claudio Labanca

Monash University - Department of Economics ( email )

Australia

HOME PAGE: http://https://sites.google.com/monash.edu/claudiolabanca/

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