Financial Stability Analysis: What are the Data Needs?

Abstract

The growing incidences of financial crises and their damage to the economy has led policy makers to sharpen the focus on financial stability analysis (FSA), crisis prevention and management over the past 10-15 years. The statistical world has reacted with a number of initiatives, but does more need to be done? Taking a holistic view, based on a review of experiences of policy makers and analysts, this paper identifies common international threads in the data needed for FSA and suggests ways to address these. While there has been an encouragingly constructive response by statisticians, not least through the G-20 Data Gaps Initiative, more work is needed, including with regard to shadow banking, capital flows, corporate borrowing, and granular data. Further, to support FSA, the paper identifies potential enhancements to the conceptual advice in statistical manuals including with regard to foreign currency and remaining maturity.

Keywords: International financial markets, Financial crises, Spillovers, Financial sector, Financial stability, Credit, Debt, data gaps, financial interconnections, global financial crisis, macro-prudential analysis, macroeconomic statistical manuals, stress testing, Financial Markets and the Macroeconomy, Financial Aspects of Economic Integration, Globalization: Finance, General, Government Policy and Regulation

JEL Classification: E44, F36, F65, G01, G15, G20, G21, G22, G23, G28