1. ESCB statistics for European policy making
Gabriel Quirós
Head of Division
Macroeconomic Statistics
European Central Bank
Workshop on the Implementation of the 2008 SNA in EECCA countries and linkages with BPM6 and GFSM 2014
Istanbul, 6-8 May 2015

2. Outline The ECB / Eurosystem / ESCB / SSM1
The ECB / Eurosystem / ESCB / SSM 2
Legal framework for statistics
Production of statistics 3

3. Euro area: 19 EU Member States which have adopted the euro
The ECB / Eurosystem / ESCB / SSM
European System of Central Banks (ESCB): ECB and national central banks of the 28 Member States of the European Union FI
Eurosystem: ECB and national central banks of the 19 EU Member States of the euro area SE EE
Single Supervisory Mechanism: ECB and the national supervisory authorities of the euro area and other EU countries which choose to participate LV LT UK NL PL DE BE LU CZ SK FR AT HU
Euro area: 19 EU Member States which have adopted the euro RO SI HR IT BG ES GR
EU Member States with a derogation

4. Financial Stability/ Banking Supervision
The ECB / Eurosystem / ESCB / SSM
Key ECB / Eurosystem / ESCB functions
Monetary policy
Financial Stability/ Banking Supervision
Payment systems
Banking supervision and contribute to stability of the financial system
Define and implement monetary policy
Promote smooth operation of payment systems

5. Statistics supporting decision making
The ECB / Eurosystem / ESCB / SSM
Statistics supporting decision making
own produced statistics
European statistics produced by Eurostat and the national statistical offices (e.g. GDP, HICP, labour market and short-term business statistics)
data from commercial data providers
ESCB European statistics
Monetary and financial statistics
External statistics
Securities statistics
Supervisory statistics
Quarterly euro area accounts
Other statistics 5

6. Treaty of the EU Legal framework for European statistics
Article 5 ESCB/ECB Statute
Article 338 TFEU
European Statistical System
Regulation 223/09
ECB collecting statistics
Regulation 2533/98
Eurosystem
ECB Guidelines NCBs
EP and Council Regulations
addressed to Member States
ECB Regulations
addressed to reporting agents …
Short-term Statistics
HICP
ESA 2010 transmission programme
Investment Funds …
Insurance Corp. & Pension Funds
BOP
MUFA
GFS
MFI
Balance sheet
Interest rates
Financial Vehicle Corporations
Securities Holdings

7. Legal framework for ECB statistics
Legal basis for new ECB tasks - SSM Regulation. Council Regulation No 1024/2013:
“confers to the ECB specific tasks relating to the prudential supervision of credit institutions”
Issue: multi-purpose information
SSM tasks
ESCB tasks
SSM Regulation 1024/2013
Capital Requirements Directive and Regulation (CRD-IV)
Additional
information/new data needs
legal act(s) under SSM regulation
CR2533/98
EBA’s Implementing Technical Standards (ITS)
Corep
Finrep
....
ECB Regulations
ECB Guidelines

8. EU National Statistical
Governance of European statistics (1)
Responsibility
General economic statistics
non-economic statistics
Monetary and Financial statistics
Quarterly financial accounts
Financial stability statistics
Memorandum of Understanding
Committee for Monetary, Financial and Balance of Payments Statistics
European System of Central Banks (ESCB)/Eurosystem
European
Statistiscal System (ESS)
Shared responsibilities
Balance of Payments
European Sector Accounts
Statistical Infrastructure
EU National Central
Banks
ECB
EU National Statistical
Institutes
Statistics Committee
European Statistical Systems Committee
+ new:
European Statistical Forum
Responsibility

9. European Statistical Forum – strategic cooperation
Governance of European statistics (2)
The ESCB and the European Statistical System (Eurostat and National Statistical Institutes) develop, produce and disseminate European statistics
under separate legal frameworks, reflecting their respective governance structures
Memorandum of Understanding between ESS and the ESCB (signed on April 2013) enhanced cooperation:
European Statistical Forum – strategic cooperation
work jointly in Committee for Monetary, Financial and Balance of Payments statistics (CMFB) - operational cooperation

10. Statistics Committee (STC) Statistics Committee in SSM Composition
Decision-making bodies for ECB statistics
ECB Governing Council
ECB Executive Board
ECB Supervisory Board
Statistics Committee (STC)
Statistics Committee in SSM Composition
(STC in SSM)
WG on Monetary and Financial Statistics
WG on Euro Area Accounts
WG on External Statistics
WG on General Economic Statistics
WG on Government Finance Statistics
WG on Statistical Information Management
WG on Securities Statistics
WG on Supervisory Statistics

11. ECB legal instruments concerning statistics
Regulation – directly imposes obligations on reporting agents in euro area
Guideline – imposes obligations on Eurosystem (including ECB)
Recommendation – informs statistical authorities other than central banks in euro area of ECB requirements; not legally binding
Decision – makes it public Governing Council decisions which impose obligations on addressees; can also be without addressees
Notice – to inform/explain
Opinion – expression of ECB view, usually in response to a consultation under Treaty/Statute
Also Memorandum of Understanding

12. Statistical work at the ECB is the result of team effort
NCBs/NCAs:
Collection of data from reporting agents, other national statistical authorities, other national sources
All contact with reporting agents/representative bodies
Perform tasks in accordance with EU/ECB legal acts
Responsibility for meeting the ECB’s/SSM requirement
Compilation and publication of national aggregates/contributions to aggregates
ECB:
Collection of data from other Community/international sources (e.g. Eurostat, BIS)
Quality assurance processes
Compilation and publication of euro area aggregates
Shared:
Conceptual/development work, development of legal/technical infrastructure
(ECB in lead)
Participation in Community/international statistical committees

13. Compiling euro area aggregates
Complying with international statistical standards SNA 2008, ESA 2010, BPM6
Usual approach – build from national contributions.
Importance of harmonization of the national contributions.
Some euro area aggregates are a simple sum of (harmonized) national data, but some are not.
National money stock commonly includes deposits held by residents with banks located in the country concerned. Euro area money stock includes deposits held by residents of all euro area countries with banks (MFIs) located anywhere in the euro area. It exceeds the sum of national money stocks by the amount of cross-border depositing within the euro area.
National balance of payments statistics measure all cross-border transactions of residents of the country concerned. The b.o.p. of the euro area excludes cross- border transactions within the euro area. Gross flows in the euro area b.o.p. fall short of the sum of national b.o.p. flows by the amount of these cross-border flows within the area.

14. National and euro area monetary aggregates
In German M3 In neither German nor Austrian M3 In Austrian M3 Deposits held by Deposits held by Deposits held by Deposits held by Germans with MFIs Germans with MFIs Austrians with MFIs Austrians with MFIs in Germany in Austria in Germany in Austria All the above are components of euro area monetary aggregates I I

15. Reference reporting population for ECB statistics
Central banks, other MFIs
Other (non-monetary) financial intermediaries
Post office giro institutions
Entities holding cross-border positions or carrying out cross-border transactions
Issuers of securities or e-money
The reference reporting population is confined to entities resident in the euro area (but the ECB may collect from them consolidated data which includes information relating to their branches outside the euro area).
This is all set out in Community legislation Regulation No 2533/98 - notable amendment here in No 951/2009 is extension of reference reporting population to include insurance corporations and pension funds.

16. Brief overview of own produced statistics
MFI (banking) balance sheets; monetary aggregates and counterparts
MFI interest rates
Securities issues and holdings
Other (non-monetary) financial intermediaries
Financial markets
Payment systems
Balance of payments
International investment position
Other external statistics
Government finance
Euro area integrated institutional sector accounts
Supervisory statistics
[MFI = monetary financial institution]

17. Supervisory data
The Supervisory statistical requirements are articulated in the SSM Supervisory Reporting Manual and form the main source and basis of requirements to DG/S.
Module 1: Core supervisory data: ITS data 1
covered 2
Module 2: MFI Statistics, Securities Holdings Statistics
available, further
requirements 3
Module 3: Granular Analytical Credit Database
Under development 4
Module 4: Ad-hoc data
(top-down stress testing, surveys)
covered ,
DG/S to provide support 5
Module 5: Other non-ITS supervisory data
(interest rate risk reporting)
covered, but possible further requirements 6
Module 6: Public disclosure
(Pillar 3, financial markets data)
not harmonised but
covered

18. DG-S - data flows for statistical and supervisory tasks
SSM groups & solo banks
Reception
NCBs / NCAs
Statistics (aggregated and granular)
Supervisory data (Pilot, FINREP/COREP, stress test)
Processing
ECB DG-Statistics
Monetary Policy, Payments, etc
Supervision
Dissemination
Executive Board –
Monetary Analysis
Supervisory Board –
Supervisory analysis
Analysis
ESRB, EBA,
FSB
Economics, Research, Operations, Payments, General Public
DG I to DGIV, Joint Supervisory Teams (on and off site inspections)

19. The Sequential Approach – Process for reporting ITS data
DG-S - data flows for supervisory tasks
The Sequential Approach – Process for reporting ITS data
The ITS data are reported to the EBA following a sequential approach. NCAs participating in the SSM (SSM-NCAs) send the data to the ECB, which as a competent authority, immediately submits the reports to the EBA
NCA
NCA
NCA
NCA
NCA
The sequential approach reduces reporting burdens and redundant data flows

20. Thank you
for your attention!!!

21. Annex

22. Key characteristics of the euro area
Reference year: 2013
€ -18 1
EU-28
335
9.6
28.6
12.1
27.0
17.7
20.3
508
13.5
26.6
17.1
18.2
17.3
19.0
316
13.0
41.2
16.5
13.5
18.9
18.0
128
3.6
28.1
4.5
17.0
21.7
24.5**
1,361
12.5
9.2
15.9
25.5***
46.5***
51.0***
Total population (millions)
GDP (PPP*, € trillions)
GDP per capita (PPP*, € thousands)
Share of world GDP (PPP*, %)
Exports (goods and services, % of GDP)
Gross fixed capital formation (% of GDP)
Gross saving (% of GDP)
Sources: for euro area and EU: ECB, Eurostat, national sources, IMF, World Bank and ECB calculations; for the United States, Japan and China: national sources, IMF, World Bank and ECB calculations.
1) Lithuania became the 19th euro area member state on
* Purchasing Power Standards (PPSs) in euro, calculated on the basis of PPP rates relative to the euro area (Euro 18 = 1).
** refers to 2011
*** refers to 2012

23. Monetary and financial statistics
Monetary, financial institutions and financial markets statistics
Monetary aggregates and counterparts, minimum reserves
Interest rates, securities issues
Investment funds
Financial Vehicle corporations
Financial soundness indicators, financial integration indicators
Consolidated Banking Data
Financial market statistics - yield curve, PDFs -

24. 1st publication 20 September 2012
ECB statistical support to the ESRB
The ECB has to provide statistical support to the European Systemic Risk Board (Council Regulation 1096/2010)
1st publication 20 September 2012
ESRB Risk Dashboard:
And also in SDW:
e.g. the ESRB Risk Dashboard
RDB as a risk assessment tool (input to further systemic risk analysis)
RDB as communication tool
50 indicators regarding the 6 identified risk typologies
Interlinkages and composite measures of systemic risk
Risk Categories
Macro risk
Credit risk
Funding and Liquidity
Market risk
Profitability and Solvency 24 24

25. Monthly balance of payments Quarterly breakdown by main partners
External statistics
Euro area balance of payments and international investment position - including international reserves
Monthly balance of payments
Quarterly breakdown by main partners
International investment position (balance sheet) and link to balance of payments
Includes geographic breakdown of the euro area current and capital account, international investment position and trade in goods
Nominal and real effective exchange rates of the euro

26. Fiscal discipline is essential for the stability of the euro
Government Finance statistics
Protocol on the EDP: 3% and 60% of GDP as reference values for government deficit and debt reserves
Complete set of government accounts (revenue, expenditure, debt and deficit-debt adjustment) providing an integrated overview of the government balance and debt in annual frequency
Fiscal discipline is essential for the stability of the euro
keeping price stability: direct (e.g. VAT) and indirect effects (wages)
containing inflation expectations: rising government debt may lead to pressure on the ECB to tolerate higher inflation to erode the real value of debt
keeping financial markets stable: interest rate on government debt in one country is affected by the evolution of other countries deficits and debts Quarterly breakdown by main partners

27. Euro area accounts
Complete description of euro area economic and financial developments: whole economy and by institutional sector (financial and non-financial corporations, private households and government, rest of the world)
Integrates monetary, financial and economic statistics
Consistent statistical basis for quarterly economic and monetary analysis, with integrated non-financial accounts and financial accounts
Enables analysis of interrelations between key macro-economic policy indicators (e.g. household saving rate, indebtedness and changes in wealth; entrepreneurial income of non-financial corporations; government debt)

28. General economic statistics
Other European statistics used by the ECB (Eurostat primary responsibility):
Harmonised Index of Consumer Prices (HICP)
GDP
Business indicators: industrial production, retail trade, etc.
Employment, unemployment, labour costs, etc.

29. Separation principle – ECB Decision of 17 Sep 2014
Organisational separation: the ECB shall maintain autonomous decision-making procedures for its supervisory and monetary policy functions
ECB to carry out its supervisory tasks without prejudice to and separately from its tasks relating to monetary policy and any other tasks
Professional secrecy: persons carrying out supervisory duties shall be required, even after their duties have ceased, not to disclose information covered by professional secrecy
Exchange of confidential information between policy functions: upon request on a need to know basis, subject to Executive Board approval, except where Union law provides otherwise
Analysis of the confidential information: to be conducted autonomously by the receiving policy function in accordance with its objective. Any subsequent decision to be taken solely on this basis