Seminar on New Frontiers for Statistical Data Collection (Geneva, Switzerland, 31 October-2 November 2012)

Seminar on New Frontiers for Statistical Data Collection(Geneva, Switzerland, 31 October-2 November 2012)

Agenda

• Introduction• Where we stand now?• SebStat: A new strategic view on the NBG’s Statistics• Main principals of SebStat architecture• Benefits from SebStat implementation• What next?• Conclusion

2

Introduction

• The one of the missions of the National bank of Georgia (NBG) is to provide timely, accurate, and useful monetary and financial information to users.

• This presentation discusses major issues relating to elaboration and implementation of the new Statistical Information System at the NBG, so called SebStat, and the innovative solutions, on which it is based.

3

Where we stand now?

Progress has been madeFollowing the international statistical standards, NBG made impressive improvements in statistical compilation and dissemination in all areas of statistics under its mandate. With the National Statistics Service (Geostat) and Ministry of Finance (MoF) it participated in General Data Dissemination System (GDDS) in 2006-2010.

The commendable progress achieved by the NBG allowed it to participate also in statistical initiatives such as: •(a) International Reserves and Foreign Currency Liquidity Template, since April, 2010;•(b) Special Data Dissemination Standard (SDDS; with Geostat and MoF), since May 17, 2010;•(c) Financial Stability Indicators, since April, 2012.

4

Where we stand now?

Progress has been madeMuch has been achieved in the areas of governance, standard implementation and outreach. Since 2007 NBG has published its statistics through website, as well as through annual printed statistical publications (www.nbg.gov.ge).

The website contains detailed Metadata about statistics, produced under NBG’s mandate. Moreover, user’s survey carried out by the NBG annually demonstrates, that they are satisfied with data coverage, periodicity, timeliness, accessibility, and to a great extent dissemination practices.

5

http://www.nbg.gov.ge/

Where we stand now?WeaknessesMeanwhile, statistical business processes in NBG leaves much to be desired. The main problem in this regard is decentralized information system and excel based reporting schema without compliant IT technologies. Under the decentralized statistical system of the NBG the statistical business processes are organized as follows:

6

Statistics area Responsible entity

(a) Monetary and Financial Statistics Monetary Statistics Division

(b) Daily Balance Sheets from Banks Monetary Policy Division

(c) Monthly Balance sheets and financial statements from banks

Banking Supervisory Department

(d) Monthly Statistical reports from Insurance Companies

Non-Bank Supervisory Department

(e) Quarterly Assets/Liabilities from Other Financial Institutions

Non-Bank Supervisory Department

(f) Daily reporting on financial markets operations

Financial Markets Department

Where we stand now?

WeaknessesBecause of decentralized and multi-dimensioned datasets data reliability can vary significantly: (a)by sectors, (b)by methodology, and (c)by financial instruments.

Data “gaps” in banks’ balance sheets are essential. In most cases there is not possible:•Sectorization of the financial transactions;•Residency distinction of the counterpart entities;•Financial flows resulted from revaluation (price and exchange rate changing) and other changes in volume of assets (OCVA).

7

Where we stand now?

WeaknessesExisting “gaps” are mostly eliminated through statistical reporting. However, that leads to data overlapping. As a result, given the existing excel based data collection and processing procedures, a scale of reporting burden, routine of data validation, processing and dissemination is quite significant.

Decentralized information system, on one hand, and spreadsheet reporting without appropriate IT supporting, on other, make impossible to create a centralized data warehouse. That increases the need of manual intervention and reduces the data production processes efficiency.

8

SebStat: A new strategic view on the NBG’s Statistics

At present one of the main priorities of the NBG’s activities is designing of the modern information model for collection, compilation and dissemination of statistical data.

Moreover, central bank statistics need to cover a wide range of financial and non-financial instruments, sectors and sub-sectors of the economy, types of economic activity, geographical areas within and outside of the country.

9


The IMF recommendation regarding Monetary Statistics is that stock and flow data should be reported in the format of the sectoral balance sheets.

However, new reporting forms require large investments of time and effort from both the central bank and the financial corporations sites.

10


11

Main principals of SebStat architecture

From the most general to the most particularOur initial approach was to create Information Model for Monetary and Financial Statistics, and build the SebStat Framework using Standardized Reporting Forms (SRFs) structural features:

(a) Use of a balance sheet framework;(b) Instruments disaggregated by counterpart:(c) Primary breakdown by financial instruments;• Residency;• Sectors;

(d) Breakdown by currency (national, foreign).12


Meanwhile, we considered the way from the most particular to the most general also.

Thus, initially we made an attempt to encode the existing data. The reviewing of the existing data submitted by reporting institutions through a new perspective helped us to re-form it into a new dataset using dimensions and attributes for identifying and describing data.

13


14

Source, Frequency, Instrument, Maturity, Currency, Residency, Interest rate, Reporting date, ValueSource, Frequency, Instrument, Maturity, Currency, Residency, Interest rate, Reporting date, Value

Schema 1. Identifying dimensions and attributes for existing data

BBS.MM.F0400.T111.GEL.RR.012.35.20120131.749371

On the base of analysis of derived through such manner keys for all existing datasets, we found that break down of them by homogeneous groups – families was needed. These family groups are five, and each one has a specific responsibility:

Family NamesMonthly financial and statistical data (FIM);Daily financial data (FID);Transactions with foreign currency (FRC);Money transfers statistics (MTR);Bank plastic cards statistics (BPC).

15


Schema 2. Code List creation principles

Combining the relatively small number of dimensions/attributes, shown above, with prospected ones helped us to build a full code lists up for each family groups separately (example of code lists for Monthly and Daily financial and statistical data reporting is shown in Schema2).

16



Despite our initial approach to design New Information Model for Monetary and Financial Statistics purpose, the SebStat development process has shown later there was a possibility to cover other statistical areas (BoP, IIP, FSI, Supervisory data etc.) also successfully by expanding of appropriate dimensions/attributes.

That made SebStat framework more comprehensive and convenient enough to applying in the central bank statistical practice.

17


As a result the key recording criteria for all instruments (for FIM and FID Families) are formed as follows:

•Status of instrument (assets/liabilities)•Data type (Stock/flow)•Maturity•Currency denomination•Additional information in case of loans•Loans collateralization (for FSI purpose)•Ranging of loans/deposits•Counterpart characteristics:

– Residency– Sector– Type of economic activity– Region

18


Other characteristics/attributes for all instruments (for FIM and FID Families) are:

•Book value (BV)•Market value (MV)•Valuation changes (VC)•Other changes in the volume of assets (OCVA)•Quantity

19


20

Monetary Statistics

Financial Statistics

BoP

IIP

Bank and Non-Bank Supervisory

data

Data from Financial Institutions

Data from Financial Institutions

Thus, expansion of data dimensions and attributes made SebStat framework more comprehensive to applying in the central bank statistical practice by covering other statistical areas also.

Coverage of all statistical areas under the NBG’s mandate is also one of the

main innovative approach in the SebStat framework

Coverage of all statistical areas under the NBG’s mandate is also one of the

main innovative approach in the SebStat framework

What is the SebStat?

The statistical production, like any other production process means inputs, processing, and outputs. SebStat is an information model focused on these processes. Its goal is to:•develop and promote methodological and technical standards and procedures, and •reduce reporting burden associated with the collection of data.

21


SebStat as an information model addresses one of the key problems facing NBG: Statistical business process efficiency. The aim of the SebStat is:•to ensure adoption of internationally agreed standards and frameworks for statistical processes and statistical information management;•to allow standardization and harmonization of statistical business processes in the central bank practice;•to standardize structure of transmission format and reduce manual intervention;•to be convenient for supporting clear communications between NBG and data reporters.

22


The aim of the SebStat is twofold: •collection of the relevance statistical data, and •automation of the statistical business processes at the NBG.

It is a flexible tool to:•describe and define the set of business processes at the NBG, as well as at the financial institutions;•harmonize and standardize descriptions data and metadata;•ensure standard solution for financial institutions for transmission data to the NBG.

23


SebStat improves a scope of reporting institutions:It allows to get easily accounting data from non-bank financial institutions also disaggregated by residency, sector and instrument classification.

24

SebStat: Software Architecture

The benefits that we will get from SebStat depend in great part not only its conceptual framework, but from software architecture also. The process of accessing the system from the respondent is as follows: •Login by entering the ID and password;•Upload the data;•Save the data in electronic form;•Send the data to System;•Receive conformation of the acceptance of the data (after appropriate validation procedures).

The respondent’s transactions are encrypted by SSL. 25

SebStat: Software Architecture

Schema 3. SebStat: Information flows and software components

26

Benefits from SebStat Implementation

SebStat:•offers a number of opportunities for improving data management, provides a common platform for further development and implementation of standards for statistical data and metadata. •is a tool for knowledge and skills transfer to the financial corporations. •allows financial Institutions use it not only for data submission, but for own research and analysis also. •will be sufficiently flexible to cover swiftly innovations at the financial markets and reflect them properly in the monetary and financial statistics.

27


SebStat helps:•both data providers and data producers to better understand their business from the methodological point of view as well as from technical one. •to increase the level of professionalism, on one hand, and improve the data quality, on the other.

28


More efficiency gains:

•More time for data analysis and data quality checks;•Lead to reduce development and maintenance costs;•Flexible for reflection new developments and innovations in financial sector;•Capable of improving scope of reporting institutions;•Capable to be adopted to several circumstances with little or no modifications;•Easy to share experiences and software.

29

What next?

The SebStat is a medium-term, sufficiently comprehensive and ambitious project. Given the limited resources, we faced currently, it is reasonable to implement it step by step.

Consequently, on the first stage, by the end of 2012 SebStat will be implemented at the banks.

Microfinance Organizations and Insurance Companies will be involved in the project for 2013-2014.

30

What next?

From the Monetary and Financial Statistics perspective our plans for 2012-2014 are looking as follows:

31

End of 2012

Q1, 2013

2013-2014

However, the story does not end here …

Conclusion

• The transformation of current statistical practice that NBG has begun is a very significant change for the organization.

• SebStat is a medium-term, sufficiently comprehensive and ambitious project.

• SebStat has a innovative conceptual framework. It helps to:– Collect data from different financial institution though standardised

format and unified mechanism;– Collect data for different statistical areas purposes;– Ensure web data collection through the centralization of statistical

business process environment;– Have information system with an expected long lifecycle.

32

Thank you___________________

For more information:Nana Aslamazishvili

Head of Monetary Statistics DivisionNational bank of Georgia

[email protected]: (995 32) 240 6251

33

mailto:[email protected]

Seminar on New Frontiers for Statistical Data Collection (Geneva, Switzerland, 31 October-2 November 2012)

Documents

financial information

statistical compilation

statistical initiatives

financial statements

statistical business

areas of statistics

cby financial instruments

data gaps