## 1. DGI Recommendations

## Source details

**Canonical URL:** [1. DGI Recommendations](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2016/_wp1643.pdf)

## Other formats

- [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2016/_wp1643.pdf.md)
- [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2016/_wp1643.pdf.json)

---

### I. Introduction and Purpose
- Good data and good analysis are essential for effective surveillance and policy responses at national and international levels.
- The G-20 Data Gaps Initiative (DGI) was launched to identify and address information gaps revealed by the global financial crisis of 2007/2008.
- DGI entered its second phase (DGI-2) to build on progress from DGI-1 and better meet evolving policy needs.
- DGI-1 (launched October 2009) comprised 20 recommendations; DGI-2 was formally opened in September 2015.

### II. Historical Context and Evolution
- Historical triggers leading to statistical advances cited in the text:
  - 1930s (Great Depression) → development of the System of National Accounts (SNA) in the late 1940s and the first IMF Balance of Payments Manual.
  - 1980s (capital liberalization) → increased policy focus on financial stability.
  - 1994/1995 (Mexican Crisis) → SDDS and GDDS.
  - 1997/98 (Asian crisis) → Reserves Template and SDDS strengthening.
  - end 1997 → first Coordinated Portfolio Investment Survey (CPIS).
  - 2007/2008 → global financial crisis.
  - 2009 → DGI launch.
  - 2014 → IMF Triennial Surveillance Review (TSR).
  - 2015 → DGI-2 priorities based on consultations.
- Implementation and coordination:
  - Inter-Agency Group on Economic and Financial Statistics (IAG) acted as global facilitator/coordinator.
  - IMF Staff monitored implementation annually and, together with the FSB Secretariat, reported progress to the G-20 FMCBG.
  - Six progress reports provided to the G-20 FMCBG since 2009.

### III. DGI-2 Focus Areas and Strategic Objectives
- DGI-2 concentrates on datasets that support financial stability domestically and internationally and provides more specific recommendations, some designated as global priorities.
- G-20 economies are asked to commit to nationally agreed action plans based on targets set for each recommendation.
- The IAG is tasked to coordinate, monitor, and promote the Principal Global Indicators (PGI) website as a global reference database.

### IV. Global Flow of Funds (GFF) — Objectives and Implementation
- Purpose and scope:
  - The GFF links cross-border financial exposure datasets (IBS, CPIS, and CDIS) with domestic sectoral accounts to construct matrices identifying interlinkages among domestic sectors and counterpart countries to support bilateral exposure and contagion analysis.
  - Initiated in 2013; IMF Staff developing a GFF matrix starting with the largest global economies.
- User consultation outcomes (2015 consultations, Second IMF Statistical Forum, four regional conferences):
  - Need for completeness and comprehensiveness to analyze interconnections.
  - Emphasis on the balance sheet approach for sectoral interconnections.
  - Data essential for fiscal sustainability assessment but with implementation challenges.
- Key cross-border datasets emphasized for GFF:
  - International Banking Statistics (IBS)
  - Coordinated Portfolio Investment Survey (CPIS)
  - Coordinated Direct Investment Survey (CDIS)
  - International Investment Position (IIP)

### V. Monitoring Risks in the Financial Sector
- Financial Soundness Indicators (FSIs):
  - Over 100 economies reported FSI data to the IMF at end-2015, including all G-20 economies, up from 45 economies in 2009.
  - FSI list updated in 2013 to reflect nonbank financial institutions and Basel III changes.
  - DGI-2 recommends quarterly reporting of seven FSIs expected from SDDS Plus adherent economies and increased focus on other (non-bank) financial corporations (Recommendation II.2).
- Concentration and Distribution Measures (CDM):
  - Pilot completed in 2015 with participation of 35 countries.
  - CDMs compiled for six FSIs of deposit takers (regulatory Tier 1 capital to risk-weighted assets; non performing loans to total gross loans; return on assets; return on equity; liquid assets to short-term liabilities; capital to total assets).
  - Pilot included: minimum, maximum, mean; weighted standard deviations and skewnesses; quartiles; asset share of the bottom quartile.
  - Findings: distributions revealed information not shown by averages; IMF to investigate regular collection (Recommendation II.3).
- Monitoring Shadow Banking:
  - FSB annual monitoring exercise covers 26 jurisdictions which, as of 2014, constitute 80 percent of global gross domestic product (GDP) and 90 percent of global financial system assets.
  - 2015 report introduced a new measure of shadow banking; global assets of entities classified as shadow banking reached 36 trillion US dollars based on this measure.
  - Aggregated data collection for securities financing markets intended to start in 2017 with operational support of the BIS (Recommendation II.5).
- Global Systemically Important Financial Institutions (G-SIFIs):
  - G-SIBs identified in 2011 by BCBS with additional loss absorbency measures.
  - Unique data templates for G-SIBs developed to provide granular bilateral and aggregate information covering exposures to and lending from 35 key economies.
  - Data stored at the International Data Hub at the BIS; sharing among national authorities, BIS, FSB, and IMF agreed in principle, confidentiality issues remain.
  - DGI-2 will investigate common data templates for systemically important non-bank financial institutions starting with insurance companies (Recommendation II.4).
- Derivatives and securities:
  - DGI-2 recognizes need to improve OTC derivatives market data more broadly; BIS and FSB to review and develop aggregation/sharing mechanisms (Recommendation II.6).
  - G-20 economies encouraged to report debt securities issuance data quarterly to BIS with sector, currency, interest rate type, and original maturity (Recommendation II.7).

### VI. Surveillance Tools: Balance Sheet Analysis, Sectoral Accounts, Distributional and Fiscal Data
- Balance Sheet Analysis (BSA):
  - IMF action plan post-2014 TSR to revive/adapt BSA; IMF paper “Balance Sheet Analysis in Surveillance” (June 2015) sets out data framework.
  - DGI-2 recommends G-20 compilation and dissemination of quarterly and annual sectoral accounts flows and balance sheet data, including other (non-bank) financial corporations, with from-whom-to-whom matrices (Recommendation II.8).
- Distributional information:
  - DGI-2 recommends production/dissemination of distributional information on income, consumption, saving, and wealth for households (Recommendation II.9); OECD to coordinate with Eurostat and ECB.
- Government finance and public debt:
  - GFSM 2014 adoption promoted; GFSAC established with first meeting March 2015.
  - DGI-2 recommends quarterly general government data consistent with GFSM 2014 and encourages adoption of accrual accounting (Recommendation II.15).
  - Public sector debt: G-20 to provide comprehensive general government debt data to the World Bank/IMF/OECD Public Sector Debt Database (Recommendation II.16).

### VII. Cross-border Interconnections and Foreign Currency Exposures
- Four key datasets (IIP, IBS, CPIS, CDIS) are central to capturing cross-country financial linkages; DGI-2 focuses on improving availability and comparability (Recommendations II.10–II.13).
- International Investment Position (IIP):
  - Enhanced to include currency and more detailed sector breakdowns, including other (non-bank) financial corporations.
  - Reporting frequency improved from annual to quarterly; by end-2015 virtually all G-20 economies reported quarterly IIP data (Recommendation II.10).
- CPIS and CDIS:
  - CPIS collected semi-annually from June 2013 with dissemination lag less than nine months; by end-2015 all G-20 economies reported CPIS data to the IMF, of which 18 reported on a semi-annual basis.
  - At end-2015, 15 G-20 economies report sector of holder data; encouraged tables added for sector of issuer crossed with sector of holder.
  - CDIS provides inward and outward direct investment positions broken down by net equity and net debt; DGI-2 calls for improved reporting (Recommendations II.12 and II.13).
- Non-bank corporate cross-border exposures:
  - IAG to improve consistency and dissemination of data on non-bank corporations’ cross-border exposures, including foreign affiliates and intra-group funding, to better analyze risks including foreign currency mismatches (Recommendation II.14).

### VIII. Property Markets and Price Indices
- Residential Property Price Indices (RPPI):
  - Handbook on RPPI provides conceptual guidance; RPPI included among FSI indicators prescribed for SDDS Plus adherents.
  - DGI-2 recommends publication of RPPI consistent with the Handbook and supply to relevant international organizations (Recommendation II.17).
- Commercial Property Price Indices (CPPI):
  - Less developed conceptually and in data availability; DGI-2 recommends enhancing methodological guidance and encouraging dissemination via the BIS website (Recommendation II.18).

### IX. Communication, Data Standards, Confidentiality, and Access
- SDDS Plus and e-GDDS:
  - SDDS Plus is a new tier intended for economies with systemically important financial systems; adherents expected to disseminate data in nine categories across four macro sectors; at the time of writing eight countries adhere to SDDS Plus.
  - e-GDDS enhanced May 2015 to assist countries with less developed statistical capacity.
- Principal Global Indicators (PGI) website:
  - Launched 2009; enhanced under DGI; provides comparable historical data and will be further strengthened (Recommendation II.19).
- Confidentiality and micro data sharing:
  - Growing data granularity raises confidentiality challenges.
  - DGI-2 encourages revisiting confidentiality constraints to increase sharing/accessibility of granular data (Recommendation II.20).
  - Third IMF Statistical Forum (Frankfurt, November 2015) urged establishing legal frameworks to support micro data access while preserving confidentiality.
- Private sector disclosure:
  - Enhanced Disclosure Task Force (EDTF) issued seven fundamental principles for enhancing banks’ risk disclosures in October 2012.

### X. Key Implementation Facts and Milestones (as described)
- 20 recommendations in DGI-1 (DGI launched in October 2009).
- Six progress reports provided to the G-20 FMCBG since 2009.
- DGI-2 formally opened in September 2015.
- Notable dataset and reporting milestones by end-2015:
  - Over 100 economies reporting FSIs.
  - All G-20 economies reporting FSI data and IIP quarterly.
  - All G-20 economies reporting CPIS data to the IMF; 18 on a semi-annual basis.
  - 15 G-20 economies reporting sector of holder data in CPIS.
  - Pilot CDM exercise with 35 countries completed in 2015.
  - Aggregated securities financing market data collection intended to start in 2017.
  - Shadow banking global assets measured at 36 trillion US dollars under new measure.
  - Eight countries adhering to SDDS Plus at time of writing.

### XI. Conclusions and Policy Imperatives
- DGI provides a global methodology linking statistical frameworks to understand financial markets and interconnectedness.
- Making standardized, frequent, timely, reliable, and high-quality data available is a long-term global effort requiring high-level support and resources.
- Coordination among international organizations (IMF, BIS, FSB, OECD, World Bank, Eurostat, ECB) and national authorities is essential to realize benefits from DGI investments.
- IMF to monitor reporting, consistency, and progress across recommendations and support capacity building through technical assistance and training.

*Source: _wp1643 — 1. DGI Recommendations; Box 1. Global Flow of Funds; ANNEX 1. DGI-2 RECOMMENDATIONS*

### 1. DGI Recommendations .................................................................................................

### 1. DGI Recommendations

### I. Introduction
- Good data and good analysis are the lifeblood of effective surveillance and policy responses at both national and international levels.
- Reliable, comprehensive and timely information is essential to assess risks and vulnerabilities facing economies.
- The G-20 Data Gaps Initiative (DGI) was launched to identify and address information gaps revealed by the global financial crisis of 2007/2008.
- DGI is entering its second phase (DGI-2) to build on progress from DGI-1 and better meet evolving policy needs.

### II. Responding to Policy Needs: The DGI
- Historical precedent:
  - The Great Depression of the 1930s led to development of the System of National Accounts (SNA) in the late 1940s and the first IMF Balance of Payments Manual around the same time.
  - The capital liberalization trend starting in the 1980s increased the policy focus on financial stability and required rethinking of related statistical frameworks.
  - The Mexican Crisis of 1994/1995 prompted the IMF’s Special Data Dissemination Standard (SDDS) and General Data Dissemination System (GDDS).
  - The Asian crisis of 1997/98 revealed the need for better reserves and foreign currency liquidity data and led to a Reserves Template and SDDS strengthening.
  - The first IMF Coordinated Portfolio Investment Survey (CPIS) was launched at end 1997 to improve portfolio investment asset statistics.
- DGI origins and purpose:
  - In October 2009 the G-20 FMCBG endorsed a DGI led by the FSB Secretariat and IMF Staff with 20 recommendations to address information gaps from the global financial crisis.
  - The DGI was structured around four themes: build-up of risk in the financial sector, cross-border financial vulnerabilities, vulnerability of domestic economies to shocks, and communication of official statistics.
- Implementation and coordination:
  - The Inter-Agency Group on Economic and Financial Statistics (IAG) has acted as the global facilitator and coordinator.
  - The IMF Staff has monitored implementation of the DGI recommendations by G-20 economies on an annual basis and, together with the FSB Secretariat, reported progress to the G-20 FMCBG.
  - Six progress reports have been provided to the G-20 FMCBG since 2009.
- Evolution to DGI-2:
  - By September 2015, after considerable progress, the G-20 FMCBG closed DGI-1 and opened DGI-2.
  - DGI-2 focuses on datasets that support the stability of the financial system both domestically and internationally, consolidating DGI-1 progress.
  - DGI-2 recommendations are more specific than DGI-1, with some identified as global priorities based on 2015 consultations.
  - G-20 economies are asked to commit to nationally agreed action plans based on targets set for each recommendation.
  - The DGI-2 recommendations are set out in Annex 1.

### III. Evolution of Policy Needs Following the Global Financial Crisis
- Regulatory reform agenda:
  - Following the crisis, in 2008 G-20 leaders committed to fundamental reform of the global financial system to strengthen financial markets and regulatory regimes.
  - The FSB was established in April 2009 as successor to the Financial Stability Forum (FSF) to coordinate the financial reform program.
  - DGI supports the regulatory reform agenda by providing data needed for implementation, including:
    - Data on Global Systemically Important Banks’ (G-SIBs) exposures and funding dependencies to address “too-big-to-fail”.
    - Global data collection and aggregation on securities financing transactions to improve transparency in securitization and address shadow banking risks.
    - Improved information in Credit Default Swap (CDS) markets.
    - Contributions to Global Legal Entity Identifier (LEI) work which enhance micro-level data robustness.
  - Changing global regulatory reforms, including Basel III implementation, were considered in DGI development.
- Surveillance agenda:
  - The IMF’s 2014 Triennial Surveillance Review (TSR) emphasized that growing cross-border interconnectedness makes financial market shocks likely to have significant spillovers via capital flows and shifts in risk positions.
  - The TSR recommended improving information on balance-sheets and enriching flow-of-funds data.
  - The IMF Managing Director’s Action Plan for Strengthening Surveillance following the 2014 TSR underlined reviving and adapting the Balance Sheet Approach (BSA) and possibly initiating a global flow of funds to better reflect global interconnections.
  - DGI data needs support the IMF’s macro-financial work and key exercises and reports (Early Warning Exercise, FSAP, and GFSR).

### IV. Key Implementation Facts and Milestones (as described)
- 20 recommendations in DGI-1 (DGI launched in October 2009).
- Six progress reports provided to the G-20 FMCBG since 2009.
- DGI-2 formally opened in September 2015.
- Historical triggers for statistical advances cited include: 1930s (Great Depression), late 1940s (SNA and BOP manual), 1980s (capital liberalization), 1994/1995 (Mexican Crisis), 1997/98 (Asian crisis), end 1997 (first CPIS), 2007/2008 (global financial crisis), 2009 (DGI launch), 2014 (TSR), 2015 (DGI-2 priorities based on consultations).

*Source: _wp1643 - 1. DGI Recommendations*

### Box 1. Global Flow of Funds

### Box 1. Global Flow of Funds

### Overview of the Global Flow of Funds (GFF)
- The GFF links cross-border financial exposure datasets (IBS, CPIS, and CDIS) with domestic sectoral accounts to build a comprehensive picture of financial interconnections domestically and across borders with a link back to the real economy through sectoral accounts.
- Primary aim: construct a matrix identifying interlinkages among domestic sectors and counterpart countries (and possibly counterpart country sectors) to support analysis of bilateral financial exposures and potential contagion.
- Initiated in 2013 as part of an IMF initiative to strengthen analysis of interconnectedness across borders, global liquidity flows, and global financial interdependencies.
- IMF Staff is developing a GFF matrix starting with the largest global economies.

### The DGI Project: Objectives and User Consultations
- DGI purpose: incorporate users’ needs into development of economic and financial statistics; broad user consultation in 2015 including the Second IMF Statistical Forum and four regional conferences.
- Key outcomes from consultations:
  - Need for completeness and comprehensiveness of data to analyze interconnections among economies.
  - Emphasis on balance sheet approach for understanding sectoral interconnections within domestic economy.
  - Data essential for fiscal sustainability assessment but with implementation challenges.
- Common G-20 focus areas identified:
  - Disseminating consistent and comparable Financial Soundness Indicators (FSIs).
  - Ensuring regular collection of the IBS and the CPIS.
  - Providing consistent securities statistics.
  - Improving availability of sectoral accounts data.
  - Disseminating timely and comparable general government operations and debt data.

### Monitoring Risks in the Financial Sector: FSIs, CDMs, and IBS
- Financial Soundness Indicators (FSIs):
  - Created earlier this century for macro-prudential monitoring; main focus historically on the banking sector.
  - Uses include national benchmarking, cross-country analysis, and construction of early warning indicators.
  - At end-2015 over 100 economies reported FSI data to the IMF, including all G-20 economies, an increase from 45 economies in 2009.
  - FSI list updated in 2013 to reflect nonbank financial institutions and Basel III changes (capital, leverage, liquidity, funding).
  - New FSIs introduced for money market funds, insurance corporations, pension funds, other non-bank financial institutions, non-financial corporations, and households.
  - DGI-2 emphasis: increase frequency and coverage of FSI reporting particularly for non-bank financial institutions (Annex 1, Recommendation II.2).
- Concentration and Distribution Measures (CDM) pilot:
  - Pilot completed in 2015 with the participation of 35 diverse countries.
  - CDMs compiled for six FSIs of deposit takers: regulatory Tier 1 capital to risk-weighted assets, non performing loans to total gross loans, return on assets, return on equity, liquid assets to short-term liabilities, and capital to total assets.
  - CDMs included: minimum, maximum, mean; weighted standard deviations and skewnesses; quartiles; asset share of the bottom quartile.
  - Pilot findings: distributions revealed information not shown by averages; regular CDM reporting may be feasible and useful. DGI-2 will discuss regular collection of CDM data (Annex 1, Recommendation II.3).
- International Banking Statistics (IBS):
  - BIS conceptual work on system-level maturity mismatches used IBS; emphasized need for geographically disaggregated bank balance sheet data.
  - Enhancements to IBS (adopted 2012–2015) improved counterparty, residual maturity, and currency breakdowns and improved residency-based and consolidated-based statistics.
  - DGI-2 maintains emphasis on improving IBS reporting of G-20 economies (Annex 1, Recommendation II.11).

### Monitoring Shadow Banking
- Shadow banking defined by the FSB as “credit intermediation involving entities and activities outside the regular banking system.”
- FSB strategy:
  - Annual global shadow banking monitoring exercise.
  - Development of policies to strengthen oversight and regulation of shadow banking.
- 2015 developments:
  - FSB annual report covers 26 jurisdictions which, as of 2014, constitutes 80 percent of global gross domestic product (GDP) and 90 percent of global financial system assets; report based on national financial accounts balance sheet data.
  - 2015 report introduced a new measure of shadow banking focused on entities performing significant maturity/liquidity transformation or leverage and part of credit intermediation chains.
  - Based on this measure, global assets of entities classified as shadow banking increased compared to 2014, reaching 36 trillion US dollars.
  - Collection of aggregated data for securities financing markets intended to start in 2017 with operational support of the BIS (Annex 1, Recommendation II.5).

### Monitoring Global Systemically Important Financial Institutions (G-SIFIs)
- G-SIBs (global systemically important banks):
  - Identification of G-SIBs in 2011 by BCBS and introduction of additional loss absorbency measures.
  - Development of unique data templates for G-SIBs led by FSB in close consultation with IMF to provide granular information useful for micro and macro-prudential analysis.
  - Data collection includes bilateral linkages and aggregate information based on institution-level data underlying consolidated IBS; will cover exposures to and lending from 35 key economies with granularity by sector, instrument, currency, and maturity.
  - Data stored at the International Data Hub at the BIS and shared among data-providing national authorities; sharing reports with BIS, FSB, and IMF under strict confidentiality has been agreed in principle.
  - Confidentiality issues remain to be addressed to make better use of the dataset.
  - Objective: clearer view of global financial networks to assist supervisory and macro-prudential responsibilities.
- G-SIIs beyond banking:
  - FSB and International Association of Insurance Supervisors (IAIS) identified insurance companies of global systemic importance using an IAIS methodology.
  - DGI-2 will investigate developing a common data template for global systemically important non-bank financial institutions starting with insurance companies (Annex 1, Recommendation II.4).

### Understanding Financial Markets: Securities and Derivatives
- Securities markets increasingly important as channel for financing and risk transmission; evidence of growing security issuance in emerging market economies (EME).
- Role of DGI:
  - Joint Handbook on Securities Statistics prepared by BIS, ECB, and IMF.
  - Encouraged G-20 economies to report to BIS securities statistics database.
  - Initial DGI-2 focus: improve data on issuance of debt securities with information on markets, sectors, currency, maturity, and interest rate; holdings and from-whom-to-whom data are longer-term objectives (Annex 1, Recommendation II.7).
- OTC derivatives and CDS:
  - CPIS expanded for CDS data in DGI-1; all economies with significant CDS markets report CDS data to BIS survey.
  - DGI-2 recognizes need to improve OTC derivative market data more broadly (Annex 1, Recommendation II.6).
  - Post-2009 G-20 reforms aim at reporting OTC derivative contracts to trade repositories, trading of standardized contracts on exchanges/electronic platforms, central clearing through CCPs, and higher capital for non-centrally cleared contracts—all increasing standardization and reporting consistency.

### Surveillance Agenda: Balance Sheet Analysis, Sectoral Accounts, and Fiscal Data
- Balance Sheet Analysis (BSA):
  - IMF Managing Director action plan (post-2014 TSR) to revive/adapt balance sheet approach to analyze impact and transmission of shocks across sectors.
  - IMF paper “Balance Sheet Analysis in Surveillance” (June 2015) sets out data framework and positions sectoral accounts and balance sheet data as essential for from-whom-to-whom analysis.
  - BSA compiles main balance sheets by sector and focuses on maturity and currency mismatches and capital structure vulnerabilities; can be compiled from IMF Standardized Report Forms, IIP, and government balance sheet data.
  - DGI-2 recommends improving G-20 dissemination of sectoral accounts and balance sheets building on 2008 SNA, including non-financial corporate and household sectors (Annex 1, Recommendation II.8).
- Distributional information:
  - DGI-2 focuses on compiling distributional information (e.g., by income quintiles) to complement aggregate figures, consistent with national accounts (Annex 1, Recommendation II.9).
  - OECD contributed conceptual work linking national accounts with distributional information and improving alignment of income, consumption, and wealth in micro surveys.
- Government Finance Statistics (GFS) and public debt:
  - Progress: Government Finance Statistics Manual 2014 (GFSM 2014); IMF Executive Board required inclusion of key GFSM elements in staff reports.
  - GFSAC established; first meeting March 2015 with practical recommendations supporting GFSM 2014 implementation.
  - Persistent challenges: coverage of state and local governments, institutional weaknesses in GFS, and reluctance to use statistical techniques to fill data gaps.
  - DGI-2 aims to address government finance statistics gaps (Annex 1, Recommendation II.15).
  - Public sector debt statistics: World Bank, OECD, and IMF launched quarterly public sector debt statistics database in 2010; DGI-2 supports improved presentation of instrument and sectoral coverage on a matrix basis (Annex 1, Recommendation II.16).

### Understanding Cross-border Financial Interconnections and Foreign Currency Exposures
- Cross-border interconnectedness critical to capture systemic risk from direct/indirect interlinkages.
- Four key datasets for cross-country financial linkages: IIP, BIS IBS, IMF CPIS, and IMF CDIS. DGI-2 focuses on improving availability and cross-country comparability of these datasets (Annex 1, Recommendations II.10, 11, 12 and 13).
- International Investment Position (IIP):
  - Enhanced to include currency and more detailed sector breakdowns (notably OFCs).
  - Reporting frequency improved from annual to quarterly; by end-2015 virtually all G-20 economies reported quarterly IIP data.
- IBS enhancements:
  - Expanded coverage to include domestic positions in addition to cross-border activities.
  - Improved granularity on country and sector of banks’ counterparties, particularly non-bank financial institutions.
- CPIS enhancements:
  - Collected semi-annually from June 2013 with dissemination lag less than nine months.
  - By end-2015 all G-20 economies reported CPIS data to the IMF, of which 18 reported on a semi-annual basis.
  - At end-2015, 15 G-20 economies report sector of holder data; encouraged tables added for sector of issuer crossed with sector of holder.
  - DGI-2 maintains focus on improving CPIS reporting of G-20 economies.
- CDIS:
  - Complements CPIS and IBS by providing direct investment positions broken down by net equity and net debt; brought under DGI in its second phase to improve quality of direct investment position statistics.
- Foreign currency exposures:
  - G-20 FMCBG and IMF focused on improving foreign currency exposure information due to potential spillovers from exchange rate movements.
  - BIS contributes via international debt securities and enhanced IBS for better measurement of currency mismatches.
  - DGI-2 incorporates more explicit attention to foreign currency exposures (IIP, cross-border exposures of non-bank corporations, and securities statistics).
  - DGI framework addresses offshore foreign exchange derivatives and intra-group funding of non-financial corporations (Annex 1, Recommendation II.14); BIS, IMF, and OECD to continue improving non-financial corporations’ cross-border exposures data.

### Monitoring Property Markets
- Residential Property Price Indices (RPPI) and Commercial Property Price Indices (CPPI):
  - RPPI: Handbook on RPPI provided conceptual guidance; BIS disseminates real estate price statistics; most G-20 countries provide data though often at development stage.
  - RPPI included among FSI indicators prescribed for SDDS Plus adherents.
  - CPPI: less developed conceptually and in data availability but relevant for financial stability and valuation of securitized assets.
  - DGI-2 includes recommendations II.17 and II.18 addressing development of property price indices.

### Communicating Statistics and Data Standards
- SDDS Plus:
  - New tier of IMF’s data standards intended for economies with systemically important financial systems; adherents expected to disseminate data in nine categories across four macro sectors aligned to DGI-1 recommendations.
  - At the time of writing eight countries adhere to the SDDS Plus.
- e-GDDS:
  - Enhancements in May 2015 to assist countries with less developed statistical capacity; emphasis on data dissemination to support transparency and surveillance.
- Principal Global Indicators (PGI) website:
  - Launched 2009 to facilitate monitoring economic and financial developments; includes data for G-20 economies and 14 non-G-20 members with systemically important financial sectors and subject to five-year mandatory FSAP.
  - PGI was significantly enhanced under DGI; offers online database with user-selected historical data in comparable units.
  - DGI-2 work to strengthen PGI will continue (Annex 1, Recommendation 19).
- Confidentiality and micro data:
  - Growing granularity raises confidentiality challenges for sharing micro-level data within countries and with international agencies.
  - DGI-2 encourages G-20 economies to revisit confidentiality constraints to increase sharing/accessibility of granular data (Annex 1, Recommendation 20).
  - Third IMF Statistical Forum (Frankfurt, November 2015) urged establishment of legal frameworks to support micro data access while preserving confidentiality.
- Private sector disclosure efforts:
  - Enhanced Disclosure Task Force (EDTF) released seven fundamental principles for enhancing banks’ risk disclosures in October 2012.

### Broader Implications and Conclusion
- DGI methodology and recommendations apply globally and provide conceptual guidance for all IMF member economies; many non-G-20 economies are implementing DGI recommendations.
- Improved global data quality is essential to assess macro-financial linkages; IMF provides technical assistance and training to support compilation of datasets.
- Conclusion:
  - DGI is an overarching initiative linking statistical frameworks to understand financial markets and interconnectedness.
  - Making standardized, frequent, timely, reliable, and high-quality data available is a long-term global effort requiring high-level support and resources.
  - Maintaining pace and coordination among global players is important to reap benefits from DGI investments.

*Source: Box 1. Global Flow of Funds, _wp1643 - Box 1. Global Flow of Funds*

### ANNEX 1. DGI-2 RECOMMENDATIONS

### ANNEX 1. DGI-2 RECOMMENDATIONS

### Mandate of the DGI
- Recommendation II.1: Mandate of the DGI
  - The G-20 economies to regularly compile comparable and high quality economic and financial statistics in accordance with international standards and disseminate such statistics in a timely manner.
  - The IAG to coordinate and monitor the implementation of the DGI recommendations, and promote the PGI website as a global reference database.
  - Staff of the FSB and IMF to provide annual updates on progress to G-20 Finance Ministers and Central Bank Governors.

### Monitoring risks in the financial sector
- Recommendation II.2: Financial Soundness Indicators
  - The G-20 economies to report the seven Financial Soundness Indicators (FSIs) expected from SDDS Plus adherent economies, on a quarterly frequency.
  - G-20 economies are encouraged to report the core and expanded lists of FSIs, with a particular focus on other (non-bank) financial corporations.
  - The IMF to coordinate the work and monitor progress.

- Recommendation II.3: Concentration and Distribution Measures (CDM)
  - The IMF to investigate the possibility of regular collection of concentration and distribution measures for FSIs.
  - G-20 economies to support the work of the IMF.

- Recommendation II.4: Data for Global Systemically Important Financial Institutions (G-SIFIs)
  - The G-20 economies to support the International Data Hub at the BIS to ensure the regular collection and appropriate sharing of data about global systemically important banks (G-SIBs).
  - The FSB, in close consultation with the IMF and relevant supervisory bodies, to investigate the possibility of a common data template for systemically important non-bank financial institutions starting with insurance companies, taking due account of confidentiality and legal issues.

- Recommendation II.5: Shadow Banking
  - The G-20 economies to enhance data collection on the shadow banking system by contributing to the FSB monitoring process, including through the provision of sectoral accounts data.
  - FSB to work on further improvements of the conceptual framework and developing standards and processes for collecting and aggregating consistent data at the global level.

- Recommendation II.6: Derivatives
  - BIS to review the derivatives data collected for the International Banking Statistics (IBS) and the semi-annual over-the-counter (OTC) derivatives statistics survey.
  - FSB to develop a mechanism to aggregate and share at global level OTC derivatives data from trade repositories.
  - The G-20 economies to support this work as appropriate.

- Recommendation II.7: Securities Statistics
  - G-20 economies to provide on a quarterly frequency debt securities issuance data to the BIS consistent with the Handbook on Security Statistics (HSS) starting with sector, currency, type of interest rate, original maturity and, if feasible, market of issuance.
  - Reporting of holdings of debt securities and the sectoral from-whom-to-whom data prescribed for SDDS Plus adherent economies would be a longer term objective.
  - BIS, with the assistance of the Working Group on Securities Databases, to monitor regular collection and consistency of debt securities data.

### Vulnerabilities, interconnections, and spillovers
- Recommendation II.8: Sectoral accounts
  - The G-20 economies to compile and disseminate, on a quarterly and annual frequency, sectoral accounts flows and balance sheet data, based on the internationally agreed template, including data for the other (non-bank) financial corporations sector.
  - Develop from-whom to-whom matrices for both transactions and stocks to support balance sheet analysis.
  - The IAG, in collaboration with the Intersecretariat Working Group on National Accounts, to encourage and monitor the progress by G-20 economies.

- Recommendation II.9: Household Distributional Information
  - The IAG, in close collaboration with the G-20 economies, to encourage the production and dissemination of distributional information on income, consumption, saving, and wealth, for the household sector.
  - The OECD to coordinate the work in close cooperation with Eurostat and ECB.

- Recommendation II.10: International Investment Position (IIP)
  - The G-20 economies to provide quarterly IIP data to the IMF, consistent with the Balance of Payments and International Investment Position Manual, sixth edition (BPM6), and including the enhancements such as the currency composition and separate identification of other (non-bank) financial corporations, introduced in that Manual.
  - IMF to monitor reporting and the consistency of IIP data, and consider separate identification of nonfinancial corporations, in collaboration with IMF Committee on Balance of Payments Statistics (BOPCOM).

- Recommendation II.11: International Banking Statistics (IBS)
  - G-20 economies to provide enhanced BIS international banking statistics.
  - BIS to work with all reporting countries to close gaps in the reporting of IBS, to review options for improving the consistency between the consolidated IBS and supervisory data, and to support efforts to make data more widely available.

- Recommendation II.12: Coordinated Portfolio Investment Survey (CPIS)
  - G-20 economies to provide, on a semi-annual frequency, data for the IMF CPIS, including the sector of holder table and, preferably, also the sector of nonresident issuer table.
  - IMF to monitor the regular reporting and consistency of data, to continue to improve the coverage of significant financial centers, and to investigate the possibility of quarterly reporting.

- Recommendation II.13: Coordinated Direct Investment Survey (CDIS)
  - G-20 economies to participate in and improve their reporting of the IMF Coordinated Direct Investment Survey, both inward and outward direct investment.
  - IMF to monitor the progress.

- Recommendation II.14: Cross border exposures of non-bank corporations
  - The IAG to improve the consistency and dissemination of data on non-bank corporations’ cross-border exposures, including those through foreign affiliates and intra-group funding.
  - Aim to better analyze the risks and vulnerabilities arising from such exposures including foreign currency mismatches.
  - Work will draw on existing data collections by the BIS and the IMF, and on the development of the OECD framework for foreign direct investment.
  - The G-20 economies to support the work of the IAG.

- Recommendation II.15: Government Finance Statistics
  - The G-20 economies to disseminate quarterly general government data consistent with the Government Finance Statistics Manual 2014 (GFSM 2014).
  - Adoption of accrual accounting by the G-20 economies is encouraged.
  - The IMF to monitor the regular reporting and dissemination of timely, comparable, and high-quality government finance data.

- Recommendation II.16: Public Sector Debt Statistics
  - The G-20 economies to provide comprehensive general government debt data with broad instrument coverage to the World Bank/IMF/OECD Public Sector Debt Database.
  - The World Bank to coordinate the work.

- Recommendation II.17: Residential Property Prices
  - The G-20 economies to publish residential property price indices consistent with the Handbook on Residential Property Price Indices (RPPI) and supply these data to the relevant international organizations, including the BIS, Eurostat, and OECD.
  - The IAG in collaboration with the Inter-Secretariat Working Group on Price Statistics (IWGPS) to work on a set of common headline residential property price indices; encouraging the production of long time series; developing a list of other housing-related indicators; and disseminating the headline residential property price data via the PGI website.

- Recommendation II.18: Commercial Property Prices
  - The IAG in collaboration with the Inter-Secretariat Working Group on Price Statistics to enhance the methodological guidance on the compilation of Commercial Property Price Indices (CPPI) and encourage dissemination of data on commercial property prices via the BIS website.

### Communication of official statistics
- Recommendation II.19: International Data Cooperation and Communication
  - The IAG to foster improved international data cooperation among international organizations and support timely standardized transmission of data through internationally agreed formats (e.g., SDMX), to reduce the burden on reporting economies, and promote outreach to users.
  - The IAG to continue to work with G-20 economies to present timely, consistent national data on the PGI website and on the websites of participating international organizations.

- Recommendation II.20: Promotion of Data Sharing
  - The IAG and G-20 economies to promote and encourage the exchange of data and metadata among and within G-20 economies, and with international agencies, to improve the quality (e.g., consistency) of data, and availability for policy use.
  - The G-20 economies are also encouraged to increase the sharing and accessibility of granular data, if needed by revisiting existing confidentiality constraints.

*Source: _wp1643 - ANNEX 1. DGI-2 RECOMMENDATIONS*

---


_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2016/_wp1643.pdf_