FSB launches phase 2 of its Data Gaps initiative
06 May 2014
The FSB aims to implement a common data template to collect key granular data from global systemically important banks (G-SIBs) about their assets and liabilities to provide the authorities with a framework for assessing the interlinkages and concentration of large banks in different sectors.
Phase 1 of the project, started in March 2013, focused on the exposures of G-SIBs to their largest counterparties and to major risk dimensions. Phase 2 will fill a substantial data gap by adding information on G-SIBs' Institution-to-Institution liabilities, their largest funding providers (banks and non-banks) and their funding structure (e.g. use of wholesale funding).
The Phase 2 funding template consists of two parts: a first part of the template requires banks to report their largest wholesale secured and unsecured funding providers (excluding traded debt securities). Since reporting banks typically are not able to identify the current holders of their traded debt securities, a second part of the template requires each institution to report its holdings of tradable debt securities issued by any other G-SIB's consolidated banking group.
With respect to the frequency of the data collection, for the start of Phase 2, banks will be required to report monthly, with the expectation of a weekly submission as the ultimate goal. While the monthly frequency will initially reduce the burden on banks to produce and validate high quality data, banks are expected to gradually improve their capability to report such high quality data more frequently as an integral part of their risk and crisis management toolbox. Periodic assessments will determine an appropriate path for switching to the weekly frequency.
The International Data Hub, hosted by the BIS, is extending its operations to collect and share this data, with appropriate safeguards on confidentiality.
The FSB also reviewed a roadmap for Phase 3, when the common template will include granular and comparable Institution-to-Aggregate (I-A) consolidated balance sheet data broken down by country, sector, instrument, currency and maturity. In Q3 2014, reporting banks will be invited and strongly encouraged to participate on a voluntary basis in a Quantitative Impact Analysis (QIA), submitting actual balance sheet data with full five-way crossing and protocols for streamlining the set of countries, maturities and currencies to be suitable for a field test. The goal of the QIA, which was broadly endorsed by industry participants at the October 2013 outreach to G-SIBs, is to validate whether the information delivered is as analytically useful as initially thought for regulatory and national or global financial stability purposes.
Based on the results of the QIA, the Data Gaps Group will finalise the I-A Immediate Counterparty template in early 2015. Additional consultation with industry during the course of the development of Phase 3 template is anticipated. At this juncture, first reporting of the I-A Immediate Counterparty template is planned from Q1 2016 on a best effort basis, with mandatory reporting from August 2016, with end-June reference date.
Press release
© FSB - Financial Stability Board
