Financial market crisis and the relevance of European Statistics – the ECB perspective

1. Financial market crisis and the relevance of European Statistics – the ECB perspective Caroline Willeke, Violetta Damia European Conference on Quality in Official Statistics Helsinki, 4-6 May 2010

2. Contents • General quality issues • Definitions • The governance structure of European statistics provided by the ESCB • The merits and costs procedure • Financial crisis • Identification of user needs • Relevant statistical initiatives • Conclusions and way forward

3. Quality issues Good statistics to support the conduct of monetary policy and other tasks of the European system of central banks (ESCB) • DG-S’ mission statement • ECB Statistics Quality Framework (SQF) ‘…Applied to statistics, a general benchmark of quality is whether they are fit for purpose. By using such a benchmark, quality is interpreted in a broad sense as encompassing all aspects of how well statistical processes and output fulfil key stakeholders’ expectations. while: • meeting users’ needs, • respecting confidentiality, • addressing the concerns regarding the reporting burden, and • promoting the skills and ethical standards of statisticians.

4. Quality issues (2) Relevance ‘ECB statistics shall meet stated or implied user needs. These needs may alter over time as a result of changes in the economic environment ‘ main users’ regular consultation user satisfaction monitoring current statistics usage monitoring adequate balance between real-world phenomena, economic theory, measurability and cost-effectiveness Governance issues • Article 5 of the Statute of the ESCB and of the ECB • For new requirements: (1) fine-tuning measures, (2) “short-term approaches”, and/or (3) the establishment of new or substantially enhanced statistics with a significant impact on respondents.

5. Quality issues (3) Merits and costs Overall: • judgemental element from both users and producers’ sides, but … • helps to establish priorities and facilitates more disciplined discussions with users and respondents step a step b step c step e step f/g initial assessment fact- finding exercise costs assessment merits assessment balancing merits vs. costs

6. Financial crisis – user needs Financial markets, instruments and intermediaries Monetary and Financial Institutions statistics Balance sheet and interest rate statistics Securitisation Consolidated Banking Data Integrated financial and non-financial quarterly economic accounts of the euro area Enhancement of the timeliness and frequency Micro data Centralised Securities Database (CSDB) - securities holdings Credit registers - ABS “look-through” Large Financial Institutions (LFIs) Non-financial sectors (non-financial corporations & households) SMEs: bi-annual survey across the euro area Households:household finance and consumption survey (HFCS) Global initiatives and the ECB involvement Working Group on Credit Risk Transfer (BIS and the ECB) Group of Twenty (G-20) - global measurement of financial risks “Handbook on Securities Statistics” (BIS, the ECB, and the IMF) Inter-agency Group on Economic and Financial Statistics

7. Conclusions Circumstances may change quickly • sudden reprioritisation of user needs • ECB tools to meet user needs • sound governance structure • regular contacts between statisticians and various user areas, as well as contacts with market participants ECB initiatives • already existing vs. need to react swiftly • close cooperation and joint initiatives with other Supranational/International Organisation

8. Conclusions (2) View for the future • increase further the flexibility (also of stat. processes), • increase use of micro data bases, • progress further towards the standardisation of reference data, • preparation of experimental statistics based on already available data, • use of ad hoc surveys for one-off or temporary demands • close and smooth cooperation between regional and international statistical compilers • sharing of data wherever possible

9. THANK YOU VERY MUCH FOR YOUR ATTENTION!