Coordinated Compilation Exercise (CCE) for Financial Soundness Indicators (FSIs): Data

Introduction

The FSI Data webpage provides access to the FSI data submitted by countries participating in the CCE. Information can be viewed by country (participating in the CCE) and by topic (individual country tables).

Content of Data Report Forms

The DRFs contain the following tables:

• Table A. Data Report Form: Financial Soundness Indicators is the main vehicle for reporting the core and encouraged FSIs;

• Annex Table A1 is used to report the Core FSI Sectoral Distribution of Loans to Total Loans (I5);

• Annex Table A1-Supplementary Table 1 is used to provide the ratios for loans to Other Financial Corporations (OFCs) to total loans, disaggregated by subsector (insurance and pension funds, security dealers, investment funds, other financial intermediaries, and financial auxiliaries);

• Annex Table A1-Supplementary Table 2 is used to provide the ratios of loans to nonfinancial corporations (NFCs) to total loans, disaggregated by type of industry (as defined by the International Standard Industrial Classification of all Economic Activities);

• Annex Table A2 is used to report the Encouraged FSI Geographic Distribution of Loans to Total Loans (I15);⁴
  • Annex Table A2-Supplementary Table is used to report information on deposit takers' loans by jurisdiction, as well as information on lending by deposit takers to (specific) neighboring countries, as shares of total loans;

• Table B. Data Report Form: Underlying Data Series for Calculating FSIs is used to report the underlying data series (i.e., the numerator and denominator) for constructing each FSI;

• Annex Table B1 is used to report Loans by Sectoral Distribution expressed in national currency;

• Annex Table B1-Supplementary Table 1 is used to provide disaggregated data on deposit takers lending to subsectors of OFCs (insurance and pension funds, security dealers, investment funds, other financial intermediaries, and financial auxiliaries);

• Annex Table B1-Supplementary Table 2 is used to provide information on loans by deposit takers to NFCs disaggregated by type of industry using the International Standard Industrial Classification of all Economic Activities;

• Annex Table B2 is used to report Loans by Geographic Distribution expressed in national currency;

• Annex Table B2-Supplementary Table is used to provide supplementary information on the geographic distribution of deposit takers' loans by jurisdiction as well as information on lending by deposit takers to neighboring countries.

Each of the above mentioned tables has at least three designated columns for various consolidation bases (i.e., institutional coverages) used for compiling FSIs. From these columns, the one on the left is used if the data in both the numerator and denominator of the FSI ratio are compiled on a domestically-controlled, cross border consolidation basis (DCCB); the column next to that is used if the data in both the numerator and denominator of the FSI ratio are compiled on a domestic consolidation basis (DC); columns to the right of the column labeled "Domestic Consolidation Basis" are used if one or both underlying data, in the numerator and denominator of the FSIs, are compiled on a basis other than DCCB or DC. If a FSI is compiled on more than one consolidation basis, and these bases are different from DCCB or DC, then data for these consolidation bases are provided in the columns to the right of the column labeled "Domestic Consolidation Basis." The DCCB and DC bases were chosen to appear in all DRFs as the DCCB is recommended by the IMF's Financial Soundness Indicators: Compilation Guide (Guide) for soundness analysis, while DC had been indicated in an early inventory survey as an option often used by countries and is a recommended institutional coverage for the sectors of OFCs, NFCs, and households.⁵

Tables A and B also provide direct access to the metadata for each FSI and underlying data series, respectively, which can be accessed by clicking on the FSI numbers (e.g., on I5) and on the underlying series numbers (e.g., on S7) displayed on the left hand side of the tables.

Another important aspect to be taken into account in comparing data across countries concerns the type of consolidation basis (institutional coverage) used by countries to compile particular FSIs. Although the Guide recommends that a domestically controlled cross-border consolidation (DCCB) basis be used, countries could choose to compile FSIs using a variety of institutional coverages (consolidation bases) depending on country circumstances. Details on each type of institutional coverage (consolidation basis) are provided in Notes and Definitions. The choices made by countries regarding consolidation bases for their FSIs are provided in Tables A and B and their annexes.

The adoption of a certain consolidation basis does not necessarily imply that the consolidation adjustments that are possible within the population implied by this institutional coverage actually take place. In some countries, some or all of these potential adjustments take place, while in others they do not (i.e., "solo" data are simply aggregated). Therefore, comparability of data could be affected by the extent to which countries carry out the possible consolidation adjustments, although data users should consider the quantitative significance of such adjustments in each case.

There are two levels of consolidation adjustments--intra-group consolidation adjustments (i.e., those between the parent institution and its branches and subsidiaries) and inter-group⁶ consolidation adjustments (eliminations of certain--not all--flows and positions between the reporting groups in the population). In cases where the consolidation adjustments are not applicable for specific FSIs and underlying data series, this has been indicated accordingly in the metadata. More detailed information on consolidation adjustments and whether they are carried out by a given country for a specific FSI can be found in the FSI metadata page.

There are other possible reasons for which FSIs that are reported under the same name can differ, such as the principles of valuation used, the mode of recording gains and losses, the extent that accrual accounting is followed, the boundaries of assets and liabilities in the balance sheet, the mode of recording of arrears, the identification of loan loss provisions, etc. The metadata compiled by countries for the FSIs reported in the CCE describe the choices countries have made in these methodological dimensions so as to permit an assessment of the comparability of different countries FSIs.

Users of FSI data compiled for the CCE are therefore urged to refer to the metadata before engaging in comparisons of different economies FSIs.

Besides possible methodological differences in the compilation of different countries FSIs, data users should bear in mind that different countries FSIs may also not be comparable because the circumstances across economies may differ. This is why the Guide clearly advocates that FSIs should be considered in the context also of (1) the broader picture of economic and financial circumstances of a country; (2) the institutional and regulatory framework for an economy, in particular through assessments of compliance with international financial sector standards; and (3) the structure of the country's financial system and strength of its financial infrastructure.