Jean-Marc Israël
Head of Division,
Monetary and Financial Statistics
Overview of MFS
Statistics
ECB
Skopje seminar
2-5 October 2013
Contents
Rubric
1
Production and dissemination of statistics –
Challenges and international context
2
Overview of monetary and financial statistics
3
Case study: MFI statistics
4
Case study: MIR statistics
5
Selected results
Overview of MFS Statistics
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Statistics production and dissemination
Rubric
• Each country has its statistics
•
•
•
•
•
GDP
population
inflation
money
external balance, …
• A monetary union is a single economic entity
• common currency and monetary policy
• free movement of persons, goods and services, capital flows
• increasingly integrated (financial) markets
• A monetary union needs high quality statistics and indicators to
•
•
•
•
•
•
assess the economic developments in the whole area
base its forecasts
assess the transmission of monetary policy decisions on the economy
analyse and assess its financial stability
support the conduct of other policies (e.g. financial integration); and
other functions may be looming (e.g. micro-prudential supervision)
Overview of MFS Statistics
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Decentralised statistics processing
Rubric
Challenges for euro area statistics (1/2)
Is it not possible to simply add up national data?
• Even if and when national data are
- timely,
- at the same frequency and
- accurate enough…
• concepts and definitions may still diverge (following international
standards which may also need to be interpreted)
• some classifications differ,
e.g. intra-transactions need to be classified as “domestic” of the monetary
union and, thus, allocated to SNA/ESA sectors – once asymmetry-free
• institutions of the monetary union (e.g. the ECB) are residents of the
union, but not of any country (even where they are located)
Overview of MFS Statistics
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Decentralised statistics processing
Rubric
Challenges for euro area statistics (2/2)
Start from national statistics
Harmonise concepts, definitions and methods to
– increase comparability
– enable consolidation, where appropriate
– ensure the necessary coverage and level of disaggregation
Cost-conscious approach
– while statistics are a public good, and good policy based
on good data may be invaluable for business, they have a cost
– simple, automated reporting is less costly
– financial transactions and positions get (more) complex
– security-by-security minimises the reporting burden
Central banks maintain granular datasets, e.g. a common securities
database, to identify, classify, value individual assets
– securities (reference data, aggregated and individual) issues and holdings
– granular lending data, in part based on credit registers, are also under study
Overview of MFS Statistics
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Managing Eurosystem / ESCB statistics
Rubric
Harmonisation and best practices (1/3)
Based on international statistical standards
– System of National Accounts 1993 (and stepwise 2008)
– European System of Accounts 1995 and stepwise 2010, and
– IMF Monetary and Financial Statistics Manual 2000 (being updated)
The contribution of ECB’s DG-S to the IMF Manual was substantial
Complemented by Compilation guides and Text books
 common methodological definitions and concepts
laid down for the euro area in
Regulations (ECB/2001/13, as recast in ECB/2008/32; ECB/2001/18,
as amended by ECB/2009/7; ECB/2007/8; ECB/2008/30)
MFS (recast) Guideline (ECB/2007/9, amended by ECB/2008/31 and
ECB/2009/23) and Manuals and/or Guidance notes
All under a revision process (close to completion)
Overview of MFS Statistics
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Managing Eurosystem / ESCB statistics
Rubric
Harmonisation and best practices (2/3)
Main ECB monetary and financial statistics manuals
• Manual on MFI Balance Sheet Statistics
April 2012
http://www.ecb.europa.eu/pub/pdf/other/manualmfibalancesheetstatistics201204en.pdf
• Manual on MFI Interest Rate Statistics
October 2003
http://www.ecb.europa.eu/pub/pdf/other/mfiintrestratestatisticsmanualen.pdf
• Manual on Investment Funds Statistics
May 2009
http://www.ecb.europa.eu/pub/pdf/other/manualinvestmentfundstatistics200905en.pdf
• Guidance Notes on the Definitions of ‘Financial Vehicle Corporations’
and ‘Securitisation’ under Regulation ECB/2008/30 February 2012
http://www.ecb.europa.eu/pub/pdf/other/guidancenotedefinitionsfvcsecuritisation2012en.pdf
•
Monetary Financial Institutions and Markets Statistics Sector Manual March 2007
http://www.ecb.int/pub/pdf/other/mfimarketstatisticssectormanual200703en.pdf
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Managing Eurosystem / ESCB statistics
Rubric
Harmonisation and best practices (3/3)
• Plus, based on experience in collecting, compiling and
disseminating statistics in EU Member States
• level-playing field: even-handed treatment
• sharing of information across national
compiling agencies and across Member States
• increasing use of common tools and methods
to ensure:
• fair competition
• similar and light
reporting burden
• consistency and
• accuracy
 a set of best practices for a medium-term convergence
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Contents
Rubric
1
Production and dissemination of statistics –
Challenges and international context
2
Overview of monetary and financial statistics
3
Case study: MFI statistics
4
Case study: MIR statistics
5
Selected results
Overview of MFS Statistics
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The financial sector in the euro area - Overview
Rubric
Share of total assets by sub-sector (percentage)
Assets
EUR trillion
Monetary Financial Institutions excluding
Eurosystem (MFIs)
34.4
of which Money Market Funds
(MMFs)
1.0
of which Credit Institutions (CIs)
33.2
Insurance Corporations and Pension
Funds (ICPFs)
Financial Vehicle Corporations (FVCs)
Investment Funds other than MMFs (IFs)
Total Assets
7.4
2.1
6.7
50.7
Exluding other financial intermediaries other than IF and FVC.
Data as of 2012Q2, ICPF data as of 2012Q1)
Euro area GDP in 2nd quarter of 2012: EUR 2.3 trillion
Overview of MFS Statistics
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Rubric
E(S)CB statistics: Overview
The E(S)CB collects and compiles statistics for:

The financial sector and its sub-sectors (e.g. credit institutions)

A list (register) of financial institutions in the EU

Financial instruments (e.g. loans, securities)

Outstanding amounts (e.g. balance sheet items)

Transactions and growth rates (e.g. annual growth of M3)

“Prices” (interest rates, yields, exchange rates)

Various breakdowns (e.g. counterparty sector, maturity, currency)
Overview of MFS Statistics
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Rubric
Monetary and financial statistics

Monetary aggregates and counterparts: balance sheet statistics on
banks and money market funds (e.g. M3, credit)

Statistics on average interest rates (market interest rates,
retail interest rates for deposits, loans for consumption, housing, firms)

Statistics on assets and liabilities of investment funds
(bond, equity, hedge funds etc.)

Statistics on Financial Vehicle Corporations engaged in securitisation
and banks’ securitisation
June 2011

Statistics on Insurance Corporations and Pension Funds

Securities issues; yield curves; financial markets price, volume and
structure; payments and securities settlement statistics
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June 2011
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Rubric
Monetary and financial statistics
Register of financial Institutions and Affiliates Database

A register is key to identify the reporting population(s)
(and stratify it/them)

Key to identify and classify counterparts (by respondents)

Key also to identify (financial) groups structures

A register is essential for statistics, and its value added is even greater
if it becomes multi-purposes, e.g.
•
‘Close links’ for monetary policy operations
•
Identification of payment service institutions, and
•
Supporting the Single Supervisory Mechanism
Overview of MFS Statistics
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Contents
Rubric
1
Production and dissemination of statistics –
Challenges and international context
2
Overview of monetary and financial statistics
3
Case study: MFI statistics
4
Case study: MIR statistics
5
Selected results
Overview of MFS Statistics
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Case study ECB statistics:
Rubric
The ECB’s monetary policy and MFI b/s statistics
Primary objective of price stability
Governing Council takes
monetary policy decisions based
on a unified overall assessment
of the risks to price stability
Monetary
analysis
Economic
analysis
Macroeconomic
Projections
Analysis of
economic
dynamics and
shocks
Cross-checking
Analysis of money
and credit based on
MFI statistics
Full set of information
Overview of MFS Statistics
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Case study: MFI statistics
Rubric
Other uses of MFI balance sheet statistics:
• Minimum reserves
• Economic analysis
• Financial stability
• Financial integration
• Statistical support to the ESRB
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Case study: Defining MFIs
Rubric
Monetary Financial Institutions (MFIs)
= financial institutions (= money-issuing sector of the euro area)
= central banks
+ resident credit institutions as defined in EU law
+ other resident financial institutions whose business is
- to receive deposits and/or close substitutes for deposits from entities other than
MFIs and,
- for their own account (at least in economic terms), to grant credits and/or make
investments in securities
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Case study: Defining the statistical balance sheet
Rubric
Overview of MFS Statistics
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Case study: Collecting & compiling MFI b/s statistics
Rubric
1. NCBs collect balance sheets from all MFIs resident in the country
2. NCBs transmit aggregated national balance sheet to ECB
3. ECB aggregates (sums) national balance sheets

Euro area MFI aggregated balance sheet
4. The aggregated balance sheet is then consolidated
= Netting the aggregated positions between MFIs in the euro area

Euro area MFI consolidated balance sheet

Euro area monetary aggregates
and counterparts.
5. Main euro area aggregates are seasonally adjusted by the ECB.
Overview of MFS Statistics
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Case study: Collecting & compiling MFI b/s statistics
Rubric
• However aggregated data may not suffice for in-depth analysis
• Detailed breakdowns are requested by users following different analytical
needs, e.g. monetary analysis, monetary policy transmission, collateral
management, financial stability
• Statisticians need to become more proactive and responsive to ever
increasing and rapidly changing needs

Analytical Credit dataset
based on granular loan data
Overview of MFS Statistics
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Contents
Rubric
1
Production and dissemination of statistics –
Challenges and international context
2
Overview of monetary and financial statistics
3
Case study: MFI statistics
4
Case study: MIR statistics
5
Selected results
Overview of MFS Statistics
21
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Case study: MIR statistics - Definition
Rubric
What is MIR?
“MFI interest rates” statistical data are…
•
interest rates and corresponding business volumes
•
applied by MFIs (credit institutions)
•
on deposits and loans
•
to households (HHs) and non-financial corporations (NFCs)
•
resident in the euro area
•
denominated in euro
•
collected by the ESCB from MFIs
Overview of MFS Statistics
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Case study: MIR statistics - Definition
Rubric
“MFI interest rates” are… in great demand
• cost of borrowing indicators are published since this summer
(see Monthly Bulletin article in Aug. 2013 and PR in Sept. 2013)
• selected (national) business volumes for publication
• possible extension to better capture loans to SMEs
Overview of MFS Statistics
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Case study: MIR statistics - Breakdowns
Rubric
Breakdown by
Sole proprietors
Counterpart sector
Households (HHs)
Non-financial
corporations (NFCs)
Business coverage
Outstanding
amounts
New business
Maturity
Original maturity
Period of notice
Initial rate fixation
Purpose of the
loans to HHs
For consumption
For house purchase
For other purposes
Size of the loans to
Up to EUR 0.25 mn
NFCs
Between EUR 0.25 mn
and EUR 1 mn
Over EUR 1 million
Collateralisation
With collateral
Total
Special
instruments
Revolving loans
and overdrafts
Credit card credit
Overview of MFS Statistics
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(doctors, architects,
dentists…)
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Contents
Rubric
1
Production and dissemination of statistics –
Challenges and international context
2
Overview of monetary and financial statistics
3
Case study: MFI statistics
4
Case study: MIR statistics
5
Selected results
Overview of MFS Statistics
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Money and credit
Rubric
Evolution of M3 aggregate and loans to non-MFIs excluding general government
(percentage change)
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M3 dynamics by sector
Rubric
Sectoral contribution to annual growth rate of M3
(percentage point contribution)
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Transmission mechanisms
Rubric
Monetary policy transmission mechanism and financial stability
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MFI interest rate on short-term loans
Rubric
Nominal MFI interest rate on short-term loans to NFCs (% per annum)
GR
IE
2005
2006
PT
IT
ES
euro area
DE
8
7
6
5
4
3
2
1
0
2003
2004
2007
2008
2009
2010
2011
2012
Source: ECB. – Notes: Composite rate aggregated using new business volumes. Latest observation: April 2012.
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