Strategic and Managerial Issues
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10.1 Because of the wide range of data sources that should be drawn on, compiling the full range of FSI data described in this Guide is a complex task. Moreover, for many countries such compilation is a new endeavor. In this context, Chapters 10 and 11 aim to help provide a road map for developing FSI data. This chapter covers the strategic and managerial issues that need addressing, while practical data compilation issues are addressed in the next chapter. For countries with an established system of compiling and disseminating FSI data, the need to draw on this chapter in particular may be limited.
10.2 Set out below are some of the strategic issues that should be addressed when considering the compilation of FSI data.
10.3 Given the range of data sources that potentially should be drawn on, it is most unlikely that all are available in one agency, and so the job of compiling FSI data will involve more than one agency. Nonetheless, because of the importance of this body of statistics in its own right, and to ensure that there are clear lines of responsibility and accountability, the Guide recommends that one agency should be given the primary responsibility for calculating and then disseminating FSIs-the lead agency. 1 The Guide does not suggest which agency should be responsible for calculating and disseminating FSIs. National authorities could assign responsibility through a statistical law or other statutory provision, interagency protocols, executive decrees, and so on.
10.4 Once a lead agency has been determined, an additional issue is whether there should be a unit in the lead agency that focuses specifically on the FSI data set, or whether an existing unit should add this task to its work.
10.5 The Guide sees benefit in establishing a separate unit because of
- The wide range of data that needs to be handled;
- The need to develop specialist FSI knowledge; and
- The possible pattern of workload peaks: if there is synchronization of peak workloads-the decisions relating to the timing of data release addressed below are relevant in this regard-it may not be possible to add FSI work to the workload of an existing unit.
10.6 If resource constraints dictate that FSI work is to be absorbed into the existing structure, the above points might be considered during the integration process.
10.7 If a decision is made to have a separate unit, in which department should it be located? Again, given the central role of deposit takers' data in the FSI data set, the location of related statistical work on deposit takers should be an important factor in any decision.
10.8 Decisions relating to the dissemination of data have important implications for a number of the compilation issues mentioned above, because publication deadlines help focus the work processes, Page 112 which in turn affect resource allocation decisions. An important decision with regard to dissemination concerns periodicity. Also significant are decisions on the range of data to be disseminated, the timeliness of release, and the format of release.
10.9 Owing to the nature of FSIs and their importance for decision making, countries might consider working toward disseminating at least a core FSI data set on a quarterly basis. Release of some key financial market data on a monthly basis could be considered. Chapter 12 discusses in more detail a framework for disseminating FSIs and the periodicity of release. As for the timeliness of release, given the range of data required to compile FSIs, an appropriate release date could be within one quarter after the reference date.
10.10 Regarding the format for the release of data, the Guide encourages dissemination on a single centralized website, allowing simultaneous release to all users, general accessibility of the data, and transparency. 2 Nonetheless, careful consideration should be given to the provision of additional information when FSI data are released, given the broad range of source data used in their construction and the complexity of the information they encapsulate. Text commentary on the main trends in the FSI data series could aid interpretation, and detailed metadata would support understanding of the data. Moreover, some countries produce regular publications that include articles and data on financial stability issues, and this can be useful in putting the disseminated FSIs in perspective or in providing extended discussions of relevant methodological issues. Regular statistical publications can also be vehicles for the dissemination of FSI data as well as complementary information.
10.11 General guidance on dissemination practices found in the IMF's Special Data Dissemination Standard (SDDS) and General Data Dissemination System (GDDS) include an emphasis on integrity and the need to avoid nonstatistical interference with the data.
10.12 One of the first tasks in developing systems for compiling FSIs is the identification of available source data. When compared with the information needed to compile FSIs, this inventory of available information will inform decisions on (1) resource needs, (2) the allocation of work across agencies, and (3) the development of work programs. Producing a comprehensive list of existing data will entail close coordination among potential compiling agencies. More generally, it is essential that sources and methods be well documented for use when problems arise, for ensuring continuity of process when there is staff turnover or absence, and to support the development of metadata.
10.13 A related issue is the extent of coverage of entities that fall within the definition of the sector (or subsector). In many instances, a sample of the entities in the sector is surveyed, and the reported data are "grossed up" to estimate data for the entire sector. The coverage of the survey tends to be more comprehensive for the largest entities in the sector. However, especially in the case of the deposit-taking sector, while detection of vulnerabilities in large institutions is important, experience has shown that weaknesses in smaller institutions can also have a disproportionate impact on the health and soundness of the financial system. Clearly, the broader the coverage of institutions, the more resource intensive the work.
10.14 National authorities are responsible for the allocation of resources for the compilation of FSIs. They are encouraged to provide at least adequate resources to perform the key tasks for the compilation of the core set of FSIs. These include the identification and assessment of source data and the compilation of the core FSIs. Moreover, authorities should strive to develop and retain over time a core contingent of qualified staff that is knowledgeable in statistical and financial soundness concepts and compilation methods. The allocation of resources among agencies may need to be...
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