The Financial Stability Board (FSB) and the International Monetary Fund (IMF) have published a report – Second Phase of the G20 Data Gaps Initiative (DGI-2): First Progress Report. The progress report updates on work by participating countries and international organisations to address post financial crisis data gaps and presents the action plans for each of the recommendations agreed for further endeavours.
In October 2009, the G20 Finance Ministers and Central Bank Governors endorsed a set of recommendations to support enhanced policy analysis of emerging risks and close the data gaps identified following the global financial crisis (Data Gaps Initiative). In September 2015, the G20 Ministers and Governors acknowledged the progress made and endorsed the completion of the first phase of the Data Gaps Initiative and the launch of DGI-2. The main objective of DGI-2 is to implement the regular collection and dissemination of reliable and timely statistics for policy use. DGI-2 also includes new recommendations to reflect evolving policymaker needs. Its twenty recommendations are clustered under three main headings:
- monitoring risk in the financial sector;
- vulnerabilities, interconnections and spillovers; and
- data sharing and communication of official statistics.
DGI-2 maintains continuity with the DGI-1 recommendations while setting more specific objectives for G20 economies to compile and disseminate minimum common datasets for these recommendations. The DGI-2 also includes new recommendations to reflect the evolving users’ needs, and furthermore, the DGI-2 aims at strengthening the synergies with other relevant global initiatives.
The action plans in the progress report were developed by the Inter-Agency Group on Economic and Financial Statistics in consultation with the authorities of the participating economies, and set out specific targets for the implementation of its recommendations through the five-year horizon of the initiative. The recommendations where the FSB will coordinate the work, jointly with other international organisations, include a plan to investigate the possibility of a common data template for global systemically important insurers.
Additionally, DGI-2 will work to enhance data collection on the shadow banking system by contributing to the FSB monitoring process. The FSB will seek further improvements to derive a narrow measure of shadow banking and will develop standards and processes for collecting and aggregating data on securities financing transactions at the global level.
By achieving its main objective, the DGI-2 will be instrumental in closing gaps in policy-relevant data. Most of the datasets covered by the DGI-2 are particularly relevant for meeting the emerging macro financial policy needs, including the analysis of international positions, global liquidity, foreign currency exposures, and capital flows volatility.
In 2017, four thematic workshops are planned to provide technical knowledge and take forward the initiative. In addition to the thematic workshop on Securities statistics in 2016, four thematic workshops will focus on Sectoral accounts and balance sheets; Financial Soundness Indicators; Data Sharing; and Global Systemically Important Insurers. Furthermore, a second workshop on Securities statistics is already planned for 2018. Also, some G-20 economies would continue to benefit from technical assistance and training activities.
The dialogue with users will be enhanced to reflect in the DGI-2 the evolving data needs for policy purposes. Maintaining an ongoing dialogue between users and compilers will contribute to a better understanding of the emerging data needs and will increase key users’ awareness of new data becoming available. Such dialogue will also be enhanced through the participation of both compilers and users of data in the planned thematic workshops.
The FSB was established to coordinate at the international level the work of national financial authorities and international standard setting bodies and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies in the interest of financial stability. It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts. The FSB also conducts outreach with 65 other jurisdictions through its six regional consultative groups.
You can read the report: Second Phase of the G-20 Data Gaps Initiative (DGI-2) here.