Changing Data Sources of Central Bank Statistics: Experience of CBT Aycan Özek Statistics Department Deputy Director Committee for the Coordination of Statistical Activities Twenty-second Session September 5, 2013 Ankara

Outline 1.Changing Environment 2.CBTs Experience 3.Future Work

Changing Environment Importance of Information - Moderate financial crisis - Better management of financial crisis New approaches in data compilation - Flexible to anticipate - Compatible data sets - International initiatives in data gaps Changing perspective of central banking - Role of central bankers as statisticians - Compilation of monetary and financial statistics - Room for improvement in data quality - Increased data requirements

Changing Environment Emerging Statistical Needs: Move from traditional data collection systems to emerging statistical needs (G-20 data gaps initiative): Strengthening the coverage of balance sheets Flow of funds data Data on non-bank financial institutions More timely and comparable statistics

CBTs Experience Central Bank Accounts Balance Sheet / Accounting Records Banking Data Supervisory Reporting Forms Money Market Data Traditional Data Sources:

CBTs Experience Monetary Sector (enlarged) Non-Bank Financial Institutions Government Finance Statistics New Data Sources:

CBTs Experience Why is the coverage of monetary sector enlarged? Need for better designed monetary aggregates for better financial stability analysis Harmonization with IMFs MFSM, ESA classifications and ECBs definitions OldNew Money Market Funds Participation Banks Investment and Development Banks Central Bank + DMBs Deposit Money Banks Central Bank

CBTs Experience Why is the coverage of monetary sector enlarged? ESA 95 pr …. Other monetary financial institutions consists of all financial corporations which are principally engaged in financial intermediation and whose business is to receive deposits and/or close substitutes for deposits…… for their own accounts, to grant loans and/or to make investment in securities. -Investment and Development Banks : grant loans and make investment -Participation Banks: issue profit-loss sharing accounts (within Islamic banking rules) as substitutes for deposits -Money Market Funds: issue short-term liquid securities as close substitutes for deposits

CBTs Experience Enlarged Monetary Sector COVERAGE OF MONETARY SECTOR Central Bank1 Deposit Money Banks31 Investment and Development Banks13 Participation Banks4 Money Market Funds43 TOTAL92 Source : CBRT

CBTs Experience New Data Sources for Monetary Sector: Supervisory Reporting Package (SPR) of Participation Banks - Statistical reporting forms are created and added to SPR Capital Market Board data set for Money Market Funds - Financial assets and liabilities are compiled for type-B liquid funds - Total values are calculated based on type of transactions - Transactions are disaggregated into reverse repo, outright purchases and money market transactions - Counterpart sector data is gathered from CBT Money Market transactions

CBTs Experience The Need for Non-Bank Financial Institutions Data: G-20 Data Gaps Initiative Harmonization with international standards (SNA, ESA, MFSM) Compilation of Financial Accounts

CBTs Experience New Data Sources for Non-Bank Financial Institutions: Unified Chart of Accounts of Financial Leasing, Factoring and Finance Companies compiled by BRSA Capital Market Board data set for Investment Funds Financial reports of Insurance Companies and Pension Funds compiled by Treasury Data on holder sectors of investment funds compiled by Central Registry Agency Unified Financial Reporting System of Capital Market Dealer Companies compiled from Capital Market Dealers Association Detailed balance sheet items of Savings Deposit Insurance Fund

CBTs Experience: COVERAGE OF FINANCIAL INTERMEDIARIES Financial Leasing Companies31 Factoring Companies74 Finance Companies12 Mutual Funds685 TOTAL802 Source : BRSA, CMB COVERAGE OF FINANCIAL AUXILIARIES Savings Depoist Insurance Fund1 Capital Market Dealer Companies97 TOTAL98 Source : SDIF, CMDC Association COVERAGE OF INSURANCE COMPANIES AND PENSION FUNDS Insurance Companies41 Reinsurance Companies1 Pension Funds17 TOTAL59 Source : Undersecratariat of Treasury

CBTs Experience: Financial Asset Structure of Non-Bank Financial Sector: Financial Liability Structure of Non-Bank Financial Sector:

CBTs Experience The Need for General Government Sector Data: Compilation of Financial Accounts (ESA 95) - Central government - Local government - Social Security institution

CBTs Experience New Data Sources for General Government Sector: Detailed financial assets and liabilities of central and local government, and social security institution compiled by Ministry of Finance (MoF) Government Finance Statistics by MoF Government Securities Database created by CBT

CBTs Experience Holders of Government Securities

CBTs Experience Financial Asset and Liabilities of Central and Local Government Asset Structure by Instrument Liability Structure by Instrument

CBTs Experience New Periodic Publications at CBT web site ( Financial Accounts (since 2012) Statistics on Non-Bank Financial Sector (since 2010)

CBTs Experience

Future Work Compilation of Financial Accounts: - Data on Non-financial Corporations - Data on Households IMFs Other Financial Corporations Survey: - Aggregating financial assets and liabilities of non-bank financial corporations at sector level SNA and ESA Revisions: - Changes in sector classification: Disaggregation of Money Market Funds from OMFIs Disaggregation of Non-MMF Investment Funds from OFIs Disaggregation of Insurance Companies and Pension Funds

PLEASE CONTACT FOR FURTHER INFORMATION: AYCAN ÖZEK PHONE: CENTRAL BANK OF TURKEY STATISTICS DEPARTMENT MONETARY AND FINANCIAL STATISTICS DIVISION