G20 DGI-1 Recommendations


Recommendation I.1: Mandate of the DGI

Staffs of FSB and the IMF report back to G20 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 the program is successfully implemented.

Monitoring Risk in the Financial Sector

Recommendation I.2: Financial Soundness Indicators (FSI)

The IMF to work on increasing the number of countries disseminating Financial Soundness Indicators (FSIs), including expanding country coverage to encompass all G20 members, and on other improvements to the FSI website, including preferably quarterly reporting. FSI list to be reviewed.

Recommendation I.3: Tail Risk

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.

Recommendation I.4: Aggregate Leverage and Maturity Mismatches

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 (BCBS).

Recommendation I.5: Credit Default Swaps (CDS)

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.

Recommendation I.6: Structured Products

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 by supervisors and other relevant bodies.

Recommendation I.7: Securities Statistics

Central banks and, where relevant, statistical offices, particularly those of the G20 economies, to participate in the BIS data collection on securities and contribute to the further development of the BIS-ECB-IMF Handbook on Securities Statistics (Handbook). The Working Group on Securities Databases to develop and implement a communications strategy for the Handbook.

Documents

BIS-ECB-IMF Handbook on Securities Statistics (HSS) (publication)

Working Group on Securities Databases on the Handbook on Securities Statistics (HSS) (communication)

International Network Connections

Recommendation I.8: Data for Global Systemically Important Financial Institutions (G-SIFIs)

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.

Recommendation I.9: Data for Global Systemically Important Financial Institutions (G-SIFIs)

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.

Recommendation I.10: Coordinated Portfolio Investment Survey (CPIS) and International Banking Statistics (IBS) Participation & Enhancement

All G20 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.

Recommendation I.11: Coordinated Portfolio Investment Survey (CPIS) and International Banking Statistics (IBS) Participation & Enhancement

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.

Recommendation I.12: International Investment Position (IIP)

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 G20 economies as soon as feasible.

Recommendation I.13: Financial and Non-financial corporations’ cross border exposures

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.

Recommendation I.14: Financial and Non-financial corporations’ cross border exposures

The IAG consulting with the FSB to revisit the recommendation of the G-22 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

Recommendation I.15: Sectoral Accounts

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 G20 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.

Documents

Templates for Minimum and Encouraged Set of Internationally Comparable Sectoral Accounts and Balance Sheets

Recommendation I.16: Distributional Information

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.

Recommendation I.17: Government Finance Statistics (GFS)

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.

Recommendation I.18: Public Sector Debt

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.

Recommendation I.19: Real Estate Prices

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. The IAG to consider including real estate prices (residential and commercial) in the Principal Global Indicators (PGI) website.

Documents

Note on the Progress in Recommendation 19  

Communication of Official Statistics

Recommendation I.20: Principal Global Indicators

The G20 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.