Slovenska 35 1505 Ljubljana Slovenia - Stat - Razsiritev matricnega...GRADUAL HARMONISATION AND DEVELOPMENT OF REPORTING (1) • Gradual harmonisation progress under the ECB's guidance

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Enhancement of matrix reporting

system for monetary financial

institutions (MFIs)

Tine Janžek

Statistical Days 2011 –

Role of Statistics in Managing Economic Imbalances

Radenci, 7-9 November 2011

GRADUAL HARMONISATION AND DEVELOPMENT

OF REPORTING (1)

GRADUAL HARMONISATION AND DEVELOPMENT

OF REPORTING (1)

• Gradual harmonisation progress under the ECB's guidance – ECB’s introduction of the Money and banking statistics to 12 accession

countries in December 1999.

– Manual of MBS in "pre-ins" (started in 2000).

– List of MFI's (Monetary Financial Institutions, S.12) formed in 2001; since

2004 every change reported.

– In 2002 start of reporting the harmonised monetary aggregates and their

counterparts, interest rates…

– LTIR developed in 2003.

– BSI reporting (SI) started in January 2005.

– MIR reporting (SI) started in July 2005.

• Reporting system based on accounting data of banks (KNB) –

predecessor of the matrix reporting system– Unable to provide the required data for the harmonisation requirements.

– Inflexible and too rigid for the enhancement of the reporting needed due to

inceased demand for the specifically structured datasets and new dimensions.

DEVELOPMENT OF THE MATRIX REPORTING (2)DEVELOPMENT OF THE MATRIX REPORTING (2)

• Gradual approach

– Narrow reporting scheme, followed by a wider one.

– Introduced in reporting of MFI's, followed by nonmonetary financial intermediaries.

• Accounting component

– New reporting scheme is related to existing accounting report.

– Cooperation with the Banking Association.

• Main problems

– Combining conceptually different reporting requirements.

– Diverse timing of introducing IAS, FINREP, COREP, Basel II and statistical requirements.

• The course of events

– Started by MFI's (S.12) in: November 2004 (balance sheet items), followed by December 2004 (revaluation items) and May 2005 (interest rates).

– Investment funds (S.123) started to report in January 2009.

– The broader reconciled reporting of MFI's has started in July 2010 (with part in June 2011).

– The reconciliation activities have started for Insurance companies and pension funds (S.125).

AN ILLUSTRATIVE EXAMPLEAN ILLUSTRATIVE EXAMPLE

i.e. S.11, S.121…

(ESA95)

i.e. EUR, CHF,

USD…(ISO 4217)

The number of reporting records

depends on the combination of codes

in reporting items.

DEFINITION AND LABELING OF REPORTING

ITEMS

DEFINITION AND LABELING OF REPORTING

ITEMS

1. Statement of financial position (IFP) and off balance sheet:

• Axxxx Asset balance sheet reporting items (in BS1S and BS1V)

• Pxxxx Liability balance sheet reporting items (in BS1S and

BS1V)

• RSxxx Items of recapitulation of financial position statement

(in BS1S)

2. Services on account of customers (commission services; in BS1S):

– mediation, performing of orders and management of

financial instruments on account of the customer:

• KA1xx Asset items of commission services

• KP1xx Liability items of commission services

– custodian services on account of the customers:

• KA2xx Asset items of commission services

• KP2xx Liability items of commission services

DEFINITION AND LABELLING OF REPORTING

ITEMS (2)

DEFINITION AND LABELLING OF REPORTING

ITEMS (2)

– Settlement services:

• KA3xx Asset items of commission services

• KP3xx Liability items of commission services

– Other services on account of the customers:

• KA4xx Asset items of commission services

• KP4xx Liability items of commission services

3. Statement of comprehensive income (IVD) in BS1S:

– Items of the income statement (IPI):

• UPxxx Revenue/profits IPI; UOxxx Expenses/losses IPI

• VN0xx Net (reconciled) profits/losses IPI

– Other items IVD:

• VN1xx Net (reconciled) profits/losses of other comprehensive income

– Items of the recapitulation of the IVD: RDxxx

REPORTING CHARACTERISTICS IN BS1SREPORTING CHARACTERISTICS IN BS1S

1. Reporting items must be marked with the codes, which more precisely define

items (i. e. financial instruments), according to sector, country, currency, original

and remaining maturity etc., and must contain value, both according to tics in

the matrix BS1S, taking into account the exceptions .

2. All data are denominated in EUR, interest rates with a precision of 4 decimal

places.

3. Reported data apply only to actual business.

4. ‚Concept over form' principle.

5. Each transaction/business is as a rule reported in a single row.

6. Internal relationship or transactions concluded between the organizational units

of the reporter are excluded.

FINDINGSFINDINGS

• Reformed reporting system:

– enhances reporting flexibility,

– increases data quality and applicability,

– enables conceptual and demands organisational rationalisation,

– influences development of relational databases and data warehouses.

• The number of cells is not an important concept.

• It is easier to report and to control reporting of related data of the same (even though higher) frequency.

• It is easier to report and to collect less more detailed reports of related data (the less exceptions in reporting, the better).

• The complexity of the common reporting system for an individual reporter depends on the complexity of its business.

• The complexity of a report limits the transparency of its components.

THANK YOU

FOR THE ATTENTION!

THANK YOU

FOR THE ATTENTION!