## 1. Stylized Overview of the 20 Recommendations ## Source details **Canonical URL:** [1. Stylized Overview of the 20 Recommendations](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2013/_wp1306.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2013/_wp1306.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2013/_wp1306.pdf.json) --- ### I. INTRODUCTION - Crisis-driven policy impetus: the global crisis prompted the IMF/FSB G-20 Data Gaps Initiative (DGI) and the creation of the Inter-Agency Group on Economic and Financial Statistics (IAG). - Historical context: continuity with past statistical responses (national accounts after the Great Depression; international banking statistics after euro-dollar growth; SDDS and GDDS after the 1990s Mexican crisis; ROSCs in early 2000s). - Core premise: residence-based statistics (GDP growth, domestic credit growth, current account positions, employment statistics, external debt, government debt and deficits) remain central. - New emphasis: financial stability and macro-prudential analysis require more granular and cross-cutting data linking micro- and macro-datasets. - DGI structure: recommendations organized around four themes: build-up of risk in the financial sector, cross-border financial linkages, vulnerability of domestic economies to shocks, and improving communication of official statistics. - SDDS Plus: IMF Executive Board endorsed a new tier—SDDS Plus—drawing significantly on the DGI; economies with systemically important financial sectors are encouraged to join. - Mandatory FSAP frequency: IMF made it mandatory for 25 jurisdictions with systemically important financial sectors to undergo FSAP every five years. ### II. STATISTICAL INITIATIVES RELATED TO THE FINANCIAL SURVEILLANCE STRATEGY - IMF financial surveillance strategy: three-pronged— - (1) strengthen analytical underpinnings of macro-financial risk assessments and policy advice, - (2) upgrade instruments/products of financial surveillance, - (3) engage stakeholders to improve traction and impact. - Paper focus: first prong—strengthening analytical underpinnings—and four policy areas: interactions between macro‑prudential/macro‑economic/micro‑prudential policies; cross‑border linkages and spillovers; regulatory reform implications; functioning and deepening of financial markets and access. #### A. Understanding interactions between macro-prudential, macro-economic, and micro-prudential policies - Sectoral accounts: - Provide current, capital, nonfinancial and financial accounts by economic sector for flows and stocks; a sectoral balance sheet is one of the nine data categories prescribed in the SDDS Plus. - Recommendation 15 of the DGI: quarterly frequency push; work undertaken as countries implement 2008 SNA or ESA 2010. - Vision: develop from-whom-to-whom domestic and cross-border flow-of-funds linking IIP, BIS IBS, CPIS, and CDIS. - Distributional information: - Recommendation 16 of the DGI; OECD and Eurostat expert groups investigating disparities between national accounts and micro household surveys and joint distribution of income, consumption, and wealth. Development at an early stage; not included in SDDS Plus. - Government finance and public sector debt: - Recommendation 17: encourage dissemination of general government finance statistics based on GFSM 2001. - Recommendation 18: World Bank, with IMF and OECD, hosting public/government sector debt data for multiple countries. - SDDS Plus prescribes quarterly general government operations and general government gross debt data on a quarterly frequency. - International Investment Position (IIP) and BPM6: - BPM6 gives equal focus to IIP and balance of payments transactions; emphasis on reconciling stocks and flows. - Recommendation 12: enhance IIP coverage including currency composition and identification of nonbank financial institutions; SDDS prescribes quarterly IIP with transition date until September 2014. - Monetary and financial statistics: - MFSM update underway to reflect financial stability needs (measures of money, credit, liquidity; nonbank financial institutions; links to flow-of-funds). - SDDS prescribes analytical accounts for banking sector and central bank; SDDS Plus prescribes data on nonbank financial institutions subsector. - Financial Soundness Indicators (FSIs): - Developed in late 1990s; cover capital adequacy, asset quality, earnings and profitability, liquidity, sensitivity to market risk. - Web database covers over 70 economies; FSI data for over 100 countries linked to GFSR. - Recommendation 2 of the DGI: review and enhance FSIs (Basel III context, nonbank FI, quarterly reporting encouraged). - SDDS Plus core FSIs include: - Regulatory Tier 1 capital to risk-weighted assets; - regulatory Tier 1 capital to assets; - nonperforming loans net of provisions to capital; - nonperforming loans to total gross loans; - return on assets; - liquid assets to short-term liabilities; - residential real estate prices. - Recommendation 3: conceptual work on tail risks and fragility measures. - Real estate prices: - Recommendation 19: Eurostat produced methodology for residential real estate price indices; work on commercial real estate underway; BIS and ECB publishing real estate price data; residential real estate prices included among FSIs in SDDS Plus. #### B. Deepen the understanding of the nature and implications of cross-border linkages and spillovers - Consolidated vs residence-based data: - Consolidation definitions vary across datasets (FSI Guide lists six consolidation definitions); need for metadata and consistent approach emphasized. - G-SIFIs data templates: - Recommendations 8 and 9: I-I (institution-to-institution) and I-A (institution-to-aggregate) templates under FSB development to provide bilateral counterparts and exposures by country/sector/instrument on consolidated and residence/ultimate risk bases. - Phasing in over the next 2 to 3 years once FSB Plenary decisions made; initial focus on global systemically important banks; later expansion to global systemic non-banks. - BIS International Banking Statistics (IBS): - Two main sets: residence-based and consolidated; BIS strengthening link between them, adding nationality breakdowns, more granular sectoral and instrument breakdowns, identification of non-bank financial institutions; supports Recommendation 11. - Maturity mismatches and leverage: - Recommendation 4: track maturity mismatches and leverage (BIS IBS main source for banks); shadow banking assessment more conceptually challenging. - Coordinated Portfolio Investment Survey (CPIS): - Annual since 2001; decision (BOPCOM) to make CPIS semi-annual, available within nine months of reference period to address Recommendation 11; enhancements expected with reference to June 2013. - Voluntary items: holdings by economic sector and currency composition; voluntary from-whom-to-whom templates for 25 systemically important financial sector economies. - SDDS Plus requires participation in CPIS for core data (semi-annual data for June 2015 to be reported in January 2016 to meet SDDS Plus requirement). - Coordinated Direct Investment Survey (CDIS): - Launched with reference to end-2009; initial participation: 84 economies reporting inward data and 59 reporting outward data; annual frequency; participation in CDIS (inward data) required in SDDS Plus. - COFER (currency composition of official reserve assets): - IMF quarterly survey; participation prescribed in SDDS Plus; individual country data remain strictly confidential. #### C. Implications of Regulatory Reform - Regulatory reform monitoring: - Data needed to identify unintended regulatory spillovers (shadow banking, too-important-to-fail, OTC derivatives). - Shadow banking and OFCs: - Shadow banking: heterogeneous institutions replicating bank features; FSB shadow banking monitoring report and DGI recommendations call for annual monitoring using sectoral accounts and complementary data. - SDDS Plus prescribes an OFC survey of high level data on claims and liabilities by sector. - OTC derivatives and CDS: - BIS collects semi-annual OTC derivatives and CDS data; enhancements implemented in 2010 and 2011; Recommendation 5 calls for expanding survey to improve understanding of credit risk transfers. - Legal Entity Identifier (LEI) expected as tool for reporting and aggregation of OTC derivatives; FSB LEI Group progress and a global LEI Regulatory Oversight Committee Charter endorsed by G-20 in November 2012. - G-SIFI templates and structural template: - Will provide data to assess impacts of regulatory reforms (e.g., capital surcharges). #### D. Functioning and deepening of financial markets and access - Securities statistics: - Recommendation 7: reinforce importance of good securities data; Handbook on Securities Statistics (three parts: debt issues, debt holdings, equity securities issues and holdings) is joint BIS/ECB/IMF work. - BIS securities reporting: around 60 central banks reporting, including virtually all G-20 members; SDDS Plus requires stocks of debt securities by issuer and holder on a from-whom-to-whom basis with quarterly periodicity and timeliness. - Structured products: - Recommendation 6: IOSCO guidance on disclosure for asset-backed securities; concerns about misleading prospectuses highlighted by crisis. - Legal Entity Identifier (LEI): - FSB-led; LEI Charter endorsed by G-20 November 2012; intended to improve counterpart identification and aggregation. - Financial Access Survey (FAS): - IMF annual global supply-side database on financial inclusion (fas.imf.org); covers G-20 Basic Set of Financial Inclusion Indicators; informs policy on inclusion, poverty reduction, growth, macro-prudential risks and stability. ### III. IMPROVING COMMUNICATION OF OFFICIAL STATISTICS - Importance of dissemination: SDDS Plus highlights relevance for financial stability of nine data categories; public dissemination of key datasets improves market functioning. - Principal Global Indicators (PGI) website: - Launched by IAG agencies to promote comparable datasets for real, financial, government and external sectors of G-20 economies and economies with systemically important financial sectors; Recommendation 20 of the DGI. ### IV. CONCLUSION - SDDS Plus purpose: guide member economies, especially those with systemic financial sectors, on providing economic and financial data to the public to support domestic and international financial stability; SDDS Plus data categories form a core set for financial stability analysis. - Increased focus: data for monitoring interconnections (domestic and cross-border), financial institutions including G-SIFIs and shadow banking, and reconciliation of residence-based and consolidated data; growing interest in liquidity measures. - Overarching goal: promote understanding of economic and financial developments, support evidence-based policy decisions, improve market functioning through transparency, contribute to stability of the international monetary system, and help avoid future crises. ### ANNEX I. LIST OF RECOMMENDATIONS (selected highlights and grouping) - Overarching recommendation - 1. Staffs of FSB and IMF staff to report back to G-20 Finance Ministers and Central Bank Governors by June 2010 on progress, with a concrete plan of action, including a timetable, to address each of the outstanding recommendations. Thereafter, staffs of FSB and IMF to provide updates on progress once a year. Financial stability experts, statisticians, and supervisors should work together to ensure that that the program is successfully implemented. - Monitoring Risk in the Financial Sector - 2. The IMF to work on increasing the number of countries disseminating Financial Soundness Indicators (FSIs), including expanding country coverage to encompass all G-20 members, and on other improvements to the FSI website, including preferably quarterly reporting. FSI list to be reviewed. - 3. In consultation with national authorities, and drawing on the Financial Soundness Indicators Compilation Guide, the IMF to investigate, develop, and encourage implementation of standard measures that can provide information on tail risks, concentrations, variations in distributions, and the volatility of indicators over time. - 4. Further investigation of the measures of system-wide macroprudential risk to be undertaken by the international community. As a first step, the BIS and the IMF should complete their work on developing measures of aggregate leverage and maturity mismatches in the financial system, drawing on inputs from the Committee on the Global Financial System (CGFS) and the Basel Committee on Banking Supervision. - 5. The CGFS and the BIS to undertake further work in close cooperation with central banks and regulators on the coverage of statistics on the credit default swap markets for the purpose of improving understanding of risk transfers within this market. - 6. Securities market regulators working through IOSCO to further investigate the disclosure requirements for complex structured products, including public disclosure requirements for financial reporting purposes, and make recommendations for additional improvements if necessary, taking account of work in other relevant bodies. - 7. Central banks and, where relevant, statistical offices, particularly those of the G-20 economies, to participate in the BIS data collection on securities and contribute to the further development of the Handbook on Securities Statistics (Handbook). The Working Group on Securities Databases to develop and implement a communications strategy for the Handbook. - International Network Connections - 8. The FSB to investigate the possibility of improved collection and sharing of information on linkages between individual financial institutions, including through supervisory college arrangements and the information exchange being considered for crisis management planning. This work must take due account of the important confidentiality and legal issues that are raised, and existing information sharing arrangements among supervisors. - 9. The FSB, in close consultation with the IMF, to convene relevant central banks, national supervisors, and other international financial institutions, to develop by end 2010 a common draft template for systemically important global financial institutions for the purpose of better understanding the exposures of these institutions to different financial sectors and national markets. This work should be undertaken in concert with related work on the systemic importance of financial institutions. Widespread consultation would be needed, and due account taken of confidentiality rules, before any reporting framework can be implemented. - 10. All G-20 economies are encouraged to participate in the IMF’s Coordinated Portfolio Investment Survey (CPIS) and in the BIS’s International Banking Statistics (IBS). The IMF and the BIS are encouraged to continue their work to improve the coverage of significant financial centers in the CPIS and IBS, respectively. - 11. The BIS and the CGFS to consider, amongst other improvements, the separate identification of nonbank financial institutions in the consolidated banking data, as well as information required to track funding patterns in the international financial system. The IMF, in consultation with the IMF’s Committee on Balance of Payments Statistics, to strive to enhance the frequency and timeliness of the CPIS data, and consider other possible enhancements, such as the institutional sector of the foreign debtor. - 12. The IMF to continue to work with countries to increase the number of International Investment Position (IIP) reporting countries, as well as the quarterly reporting of IIP data. The Balance of Payments and International Investment Position Manual, sixth edition (BPM6) enhancements to the IIP should be adopted by G-20 economies as soon as feasible. - 13. The Interagency Group on Economic and Financial Statistics (IAG) to investigate the issue of monitoring and measuring cross-border, including foreign exchange derivative, exposures of nonfinancial, and financial, corporations with the intention of promoting reporting guidance and the dissemination of data. - 14. The IAG, consulting with the FSB, to revisit the recommendation of the G-20 to examine the feasibility of developing a standardized template covering the international exposures of large nonbank financial institutions, drawing on the experience with the BIS’s IBS data, other existing and prospective data sources, and consulting with relevant stakeholders. - Sectoral and Other Financial and Economic Datasets - 15. The IAG, which includes all agencies represented in the Inter-Secretariat Working Group on National Accounts, to develop a strategy to promote the compilation and dissemination of the balance sheet approach (BSA), flow of funds, and sectoral data more generally, starting with the G-20 economies. Data on nonbank financial institutions should be a particular priority. The experience of the ECB and Eurostat within Europe and the OECD should be drawn upon. In the medium term, including more sectoral balance sheet data in the data categories of the Special Data Dissemination Standard could be considered. - 16. As the recommended improvements to data sources and categories are implemented, statistical experts to seek to compile distributional information (such as ranges and quartile information) alongside aggregate figures, wherever this is relevant. The IAG is encouraged to promote production and dissemination of these data in a frequent and timely manner. The OECD is encouraged to continue in its efforts to link national accounts data with distributional information. - 17. The IMF to promote timely and cross-country standardized and comparable government finance data based on the accepted international standard, the Government Finance Statistics Manual 2001. - 18. The World Bank, in coordination with the IMF, and consulting with the Inter-Agency Task Force on Finance Statistics, to launch the public sector debt database in 2010. - 19. The Inter-Secretariat Working Group on Price Statistics to complete the planned handbook on real estate price indices. The BIS and member central banks to investigate dissemination on the BIS website of publicly available data on real estate prices from the BIS’s Data Bank. The IAG to consider including real estate prices (residential and commercial) in the Principal Global Indicators (PGI) website. - Communication of Official Statistics - 20. The G-20 economies to support enhancement of the Principal Global Indicators website, and close the gaps in the availability of their national data. The IAG should consider making longer runs of historical data available. *Source: _wp1306 — 1. Stylized Overview of the 20 Recommendations (excerpt and Annex I).* ### 1. Stylized Overview of the 20 Recommendations ....................................................................5 ### 1. Stylized Overview of the 20 Recommendations ### Document structure - "1. Stylized Overview of the 20 Recommendations ....................................................................5" - "Annex" - "I. List of Recommendations .....................................................................................................26" *Source: _wp1306 - 1. Stylized Overview of the 20 Recommendations ....................................................................5* ### References ............................................................................................................. ### _wp1306 - References ............................................................................................................. ### I. INTRODUCTION - Crisis-driven policy impetus: the global crisis prompted the IMF/FSB G-20 Data Gaps Initiative (DGI) and the creation of the Inter-Agency Group on Economic and Financial Statistics (IAG). - Historical context: continuity with past statistical responses (national accounts after the Great Depression; international banking statistics after euro-dollar growth; SDDS and GDDS after the 1990s Mexican crisis; ROSCs in early 2000s). - Core premise: residence-based statistics (GDP growth, domestic credit growth, current account positions, employment statistics, external debt, government debt and deficits) remain central. - New emphasis: financial stability and macro-prudential analysis require more granular and cross-cutting data linking micro- and macro-datasets. - DGI structure: recommendations organized around four themes: build-up of risk in the financial sector, cross-border financial linkages, vulnerability of domestic economies to shocks, and improving communication of official statistics. - SDDS Plus: IMF Executive Board endorsed a new tier—SDDS Plus—drawing significantly on the DGI; economies with systemically important financial sectors are encouraged to join. - Mandatory FSAP frequency: IMF made it mandatory for 25 jurisdictions with systemically important financial sectors to undergo FSAP every five years (list of 25 jurisdictions provided in the source). ### II. STATISTICAL INITIATIVES RELATED TO THE FINANCIAL SURVEILLANCE STRATEGY - IMF financial surveillance strategy: three-pronged—(1) strengthen analytical underpinnings of macro-financial risk assessments and policy advice, (2) upgrade instruments/products of financial surveillance, (3) engage stakeholders to improve traction and impact. - Paper focus: first prong—strengthening analytical underpinnings—and four policy areas: interactions between macro‑prudential/macro‑economic/micro‑prudential policies; cross‑border linkages and spillovers; regulatory reform implications; functioning and deepening of financial markets and access. #### A. Understanding interactions between macro-prudential, macro-economic, and micro-prudential policies - Sectoral accounts: - Provide current, capital, nonfinancial and financial accounts by economic sector for flows and stocks; a sectoral balance sheet is one of the nine data categories prescribed in the SDDS Plus. - Recommendation 15 of the DGI: quarterly frequency push; work undertaken as countries implement 2008 SNA or ESA 2010. - Vision: develop from-whom-to-whom domestic and cross-border flow-of-funds linking IIP, BIS IBS, CPIS, and CDIS. - Distributional information: - Recommendation 16 of the DGI; OECD and Eurostat expert groups investigating disparities between national accounts and micro household surveys and joint distribution of income, consumption, and wealth. Development at an early stage; not included in SDDS Plus. - Government finance and public sector debt: - Recommendation 17: encourage dissemination of general government finance statistics based on GFSM 2001. - Recommendation 18: World Bank, with IMF and OECD, hosting public/government sector debt data for multiple countries. - SDDS Plus prescribes quarterly general government operations and general government gross debt data on a quarterly frequency. - International Investment Position (IIP) and BPM6: - BPM6 gives equal focus to IIP and balance of payments transactions; emphasis on reconciling stocks and flows. - Recommendation 12: enhance IIP coverage including currency composition and identification of nonbank financial institutions; SDDS prescribes quarterly IIP with transition date until September 2014. - Monetary and financial statistics: - MFSM update underway to reflect financial stability needs (measures of money, credit, liquidity; nonbank financial institutions; links to flow-of-funds). - SDDS prescribes analytical accounts for banking sector and central bank; SDDS Plus prescribes data on nonbank financial institutions subsector. - Financial Soundness Indicators (FSIs): - Developed in late 1990s; cover capital adequacy, asset quality, earnings and profitability, liquidity, sensitivity to market risk. - Web database covers over 70 economies; FSI data for over 100 countries linked to GFSR. - Recommendation 2 of the DGI: review and enhance FSIs (Basel III context, nonbank FI, quarterly reporting encouraged). - SDDS Plus core FSIs include: Regulatory Tier 1 capital to risk-weighted assets; regulatory Tier 1 capital to assets; nonperforming loans net of provisions to capital; nonperforming loans to total gross loans; return on assets; liquid assets to short-term liabilities; and residential real estate prices. - Recommendation 3: conceptual work on tail risks and fragility measures. - Real estate prices: - Recommendation 19: Eurostat produced methodology for residential real estate price indices; work on commercial real estate underway; BIS and ECB publishing real estate price data; residential real estate prices included among FSIs in SDDS Plus. #### B. Deepen the understanding of the nature and implications of cross-border linkages and spillovers - Consolidated vs residence-based data: - Consolidation definitions vary across datasets (FSI Guide lists six consolidation definitions); need for metadata and consistent approach emphasized. - G-SIFIs data templates: - Recommendations 8 and 9: I-I (institution-to-institution) and I-A (institution-to-aggregate) templates under FSB development to provide bilateral counterparts and exposures by country/sector/instrument on consolidated and residence/ultimate risk bases. - Phasing in over the next 2 to 3 years once FSB Plenary decisions made; initial focus on global systemically important banks; later expansion to global systemic non-banks. - BIS International Banking Statistics (IBS): - Two main sets: residence-based and consolidated; BIS strengthening link between them, adding nationality breakdowns, more granular sectoral and instrument breakdowns, identification of non-bank financial institutions; supports Recommendation 11. - Maturity mismatches and leverage: - Recommendation 4: track maturity mismatches and leverage (BIS IBS main source for banks); shadow banking assessment more conceptually challenging. - Coordinated Portfolio Investment Survey (CPIS): - Annual since 2001; decision (BOPCOM) to make CPIS semi-annual, available within nine months of reference period to address Recommendation 11; enhancements expected with reference to June 2013. - Voluntary items: holdings by economic sector and currency composition; voluntary from-whom-to-whom templates for 25 systemically important financial sector economies. - SDDS Plus requires participation in CPIS for core data (semi-annual data for June 2015 to be reported in January 2016 to meet SDDS Plus requirement). - Coordinated Direct Investment Survey (CDIS): - Launched with reference to end-2009; initial participation: 84 economies reporting inward data and 59 reporting outward data; annual frequency; participation in CDIS (inward data) required in SDDS Plus. - COFER (currency composition of official reserve assets): - IMF quarterly survey; participation prescribed in SDDS Plus; individual country data remain strictly confidential. #### C. Implications of Regulatory Reform - Regulatory reform monitoring: - Data needed to identify unintended regulatory spillovers (shadow banking, too-important-to-fail, OTC derivatives). - Shadow banking and OFCs: - Shadow banking: heterogeneous institutions replicating bank features; FSB shadow banking monitoring report and DGI recommendations call for annual monitoring using sectoral accounts and complementary data. - SDDS Plus prescribes an OFC survey of high level data on claims and liabilities by sector. - OTC derivatives and CDS: - BIS collects semi-annual OTC derivatives and CDS data; enhancements implemented in 2010 and 2011; Recommendation 5 calls for expanding survey to improve understanding of credit risk transfers. - Legal Entity Identifier (LEI) expected as tool for reporting and aggregation of OTC derivatives; FSB LEI Group progress and a global LEI Regulatory Oversight Committee Charter endorsed by G-20 in November 2012. - G-SIFI templates and structural template: - Will provide data to assess impacts of regulatory reforms (e.g., capital surcharges). #### D. Functioning and deepening of financial markets and access - Securities statistics: - Recommendation 7: reinforce importance of good securities data; Handbook on Securities Statistics (three parts: debt issues, debt holdings, equity securities issues and holdings) is joint BIS/ECB/IMF work. - BIS securities reporting: around 60 central banks reporting, including virtually all G-20 members; SDDS Plus requires stocks of debt securities by issuer and holder on a from-whom-to-whom basis with quarterly periodicity and timeliness. - Structured products: - Recommendation 6: IOSCO guidance on disclosure for asset-backed securities; concerns about misleading prospectuses highlighted by crisis. - Legal Entity Identifier (LEI): - FSB-led; LEI Charter endorsed by G-20 November 2012; intended to improve counterpart identification and aggregation. - Financial Access Survey (FAS): - IMF annual global supply-side database on financial inclusion (fas.imf.org); covers G-20 Basic Set of Financial Inclusion Indicators; informs policy on inclusion, poverty reduction, growth, macro-prudential risks and stability. ### III. IMPROVING COMMUNICATION OF OFFICIAL STATISTICS - Importance of dissemination: SDDS Plus highlights relevance for financial stability of nine data categories; public dissemination of key datasets improves market functioning. - Principal Global Indicators (PGI) website: - Launched by IAG agencies to promote comparable datasets for real, financial, government and external sectors of G-20 economies and economies with systemically important financial sectors; Recommendation 20 of the DGI. ### IV. CONCLUSION - SDDS Plus purpose: guide member economies, especially those with systemic financial sectors, on providing economic and financial data to the public to support domestic and international financial stability; SDDS Plus data categories form a core set for financial stability analysis. - Increased focus: data for monitoring interconnections (domestic and cross-border), financial institutions including G-SIFIs and shadow banking, and reconciliation of residence-based and consolidated data; growing interest in liquidity measures. - Overarching goal: promote understanding of economic and financial developments, support evidence-based policy decisions, improve market functioning through transparency, contribute to stability of the international monetary system, and help avoid future crises. *Source: _wp1306 - References .............................................................................................................* ### ANNEX I. LIST OF RECOMMENDATIONS ### ANNEX I. LIST OF RECOMMENDATIONS ### Overarching recommendation - 1. Staffs of FSB and IMF staff to report back to G-20 Finance Ministers and Central Bank Governors by June 2010 on progress, with a concrete plan of action, including a timetable, to address each of the outstanding recommendations. Thereafter, staffs of FSB and IMF to provide updates on progress once a year. Financial stability experts, statisticians, and supervisors should work together to ensure that that the program is successfully implemented. ### Monitoring Risk in the Financial Sector - 2. The IMF to work on increasing the number of countries disseminating Financial Soundness Indicators (FSIs), including expanding country coverage to encompass all G-20 members, and on other improvements to the FSI website, including preferably quarterly reporting. FSI list to be reviewed. - 3. In consultation with national authorities, and drawing on the Financial Soundness Indicators Compilation Guide, the IMF to investigate, develop, and encourage implementation of standard measures that can provide information on tail risks, concentrations, variations in distributions, and the volatility of indicators over time. - 4. Further investigation of the measures of system-wide macroprudential risk to be undertaken by the international community. As a first step, the BIS and the IMF should complete their work on developing measures of aggregate leverage and maturity mismatches in the financial system, drawing on inputs from the Committee on the Global Financial System (CGFS) and the Basel Committee on Banking Supervision. - 5. The CGFS and the BIS to undertake further work in close cooperation with central banks and regulators on the coverage of statistics on the credit default swap markets for the purpose of improving understanding of risk transfers within this market. - 6. Securities market regulators working through IOSCO to further investigate the disclosure requirements for complex structured products, including public disclosure requirements for financial reporting purposes, and make recommendations for additional improvements if necessary, taking account of work in other relevant bodies. - 7. Central banks and, where relevant, statistical offices, particularly those of the G-20 economies, to participate in the BIS data collection on securities and contribute to the further development of the Handbook on Securities Statistics (Handbook). The Working Group on Securities Databases to develop and implement a communications strategy for the Handbook. ### International Network Connections - 8. The FSB to investigate the possibility of improved collection and sharing of information on linkages between individual financial institutions, including through supervisory college arrangements and the information exchange being considered for crisis management planning. This work must take due account of the important confidentiality and legal issues that are raised, and existing information sharing arrangements among supervisors. - 9. The FSB, in close consultation with the IMF, to convene relevant central banks, national supervisors, and other international financial institutions, to develop by end 2010 a common draft template for systemically important global financial institutions for the purpose of better understanding the exposures of these institutions to different financial sectors and national markets. This work should be undertaken in concert with related work on the systemic importance of financial institutions. Widespread consultation would be needed, and due account taken of confidentiality rules, before any reporting framework can be implemented. - 10. All G-20 economies are encouraged to participate in the IMF’s Coordinated Portfolio Investment Survey (CPIS) and in the BIS’s International Banking Statistics (IBS). The IMF and the BIS are encouraged to continue their work to improve the coverage of significant financial centers in the CPIS and IBS, respectively. - 11. The BIS and the CGFS to consider, amongst other improvements, the separate identification of nonbank financial institutions in the consolidated banking data, as well as information required to track funding patterns in the international financial system. The IMF, in consultation with the IMF’s Committee on Balance of Payments Statistics, to strive to enhance the frequency and timeliness of the CPIS data, and consider other possible enhancements, such as the institutional sector of the foreign debtor. - 12. The IMF to continue to work with countries to increase the number of International Investment Position (IIP) reporting countries, as well as the quarterly reporting of IIP data. The Balance of Payments and International Investment Position Manual, sixth edition (BPM6) enhancements to the IIP should be adopted by G-20 economies as soon as feasible. - 13. The Interagency Group on Economic and Financial Statistics (IAG) to investigate the issue of monitoring and measuring cross-border, including foreign exchange derivative, exposures of nonfinancial, and financial, corporations with the intention of promoting reporting guidance and the dissemination of data. - 14. The IAG, consulting with the FSB, to revisit the recommendation of the G-20 to examine the feasibility of developing a standardized template covering the international exposures of large nonbank financial institutions, drawing on the experience with the BIS’s IBS data, other existing and prospective data sources, and consulting with relevant stakeholders. ### Sectoral and Other Financial and Economic Datasets - 15. The IAG, which includes all agencies represented in the Inter-Secretariat Working Group on National Accounts, to develop a strategy to promote the compilation and dissemination of the balance sheet approach (BSA), flow of funds, and sectoral data more generally, starting with the G-20 economies. Data on nonbank financial institutions should be a particular priority. The experience of the ECB and Eurostat within Europe and the OECD should be drawn upon. In the medium term, including more sectoral balance sheet data in the data categories of the Special Data Dissemination Standard could be considered. - 16. As the recommended improvements to data sources and categories are implemented, statistical experts to seek to compile distributional information (such as ranges and quartile information) alongside aggregate figures, wherever this is relevant. The IAG is encouraged to promote production and dissemination of these data in a frequent and timely manner. The OECD is encouraged to continue in its efforts to link national accounts data with distributional information. - 17. The IMF to promote timely and cross-country standardized and comparable government finance data based on the accepted international standard, the Government Finance Statistics Manual 2001. - 18. The World Bank, in coordination with the IMF, and consulting with the Inter-Agency Task Force on Finance Statistics, to launch the public sector debt database in 2010. - 19. The Inter-Secretariat Working Group on Price Statistics to complete the planned handbook on real estate price indices. The BIS and member central banks to investigate dissemination on the BIS website of publicly available data on real estate prices from the BIS’s Data Bank. The IAG to consider including real estate prices (residential and commercial) in the Principal Global Indicators (PGI) website. ### Communication of Official Statistics - 20. The G-20 economies to support enhancement of the Principal Global Indicators website, and close the gaps in the availability of their national data. The IAG should consider making longer runs of historical data available. *ANNEX I. LIST OF RECOMMENDATIONS — _wp1306* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2013/_wp1306.pdf_