Financial Innovation and Statistical Methodological Guidance—Key Considerations

IMF Working Papers, October 28, 2022

Source details

Canonical URL: Financial Innovation and Statistical Methodological Guidance—Key Considerations

Authors: Joe Crowley, Marco A Espinosa-Vega, Elizabeth Holmquist, Ken Lamar, Emmanuel Manolikakis, James McAndrews, Holt Williamson
Published: October 28, 2022
Series: IMF Working Papers
DOI: https://doi.org/10.5089/9798400224157.001

Financial risks outside of the traditional banking sector can quickly spread throughout financial systems and lead to disruptions in the real economy.
A lack of adequately detailed financial sector statistics can obscure buildups of risks from policymakers and hinder their ability to effectively respond once these risks materialize.
Authorities worldwide, international organizations (including the IMF), and the Group of 20 (G-20) called for financial reforms and launched efforts to gather information on nonbank financial intermediary (NBFI) activities—including the Data Gaps Initiative (DGI) and enhanced Financial Stability Board (FSB) NBFI data collection.
Despite these initiatives, gaps remain in the conceptual and methodological guidance in the financial and macroeconomic statistics manuals on which the FSB, DGI, and national authorities rely; these gaps are increasing in light of increased globalization and financial sector digitalization.
The paper proposes conceptual guidance to help bridge existing and emerging gaps.

Emergence of material risks from nonbank financial intermediaries (NBFI) that can affect the real economy.
Existing data initiatives (DGI, enhanced FSB NBFI data collection) represent significant strides but do not fully close conceptual and methodological gaps.
Globalization and financial sector digitalization are intensifying the need for updated statistical guidance.
The paper focuses on providing conceptual guidance aimed at strengthening the statistical foundation used by international and national authorities.

Subjects: Commercial banks, Financial institutions, Fintech, National accounts, Nonbank financial institutions, Technology, Virtual currencies
Keywords: Commercial banks, Crypto Assets, enhanced Financial Stability Board, Fintech, Global, information on nonbank financial intermediary, Market-Based Finance, NBFI data collection, NBFI taxonomy, Non Bank Financial Intermediation, Non-Bank Payment Service Providers, Nonbank financial institutions, System of National Accounts, Virtual currencies

Strengthen conceptual and methodological guidance in financial and macroeconomic statistics manuals relied upon by the FSB, DGI, and national authorities.
Update guidance to reflect challenges posed by globalization and financial sector digitalization.
Enhance collection and granularity of NBFI-related statistics to enable earlier detection of risk buildups and more effective policy responses.