Leveraging data for financial stability monitoring

Financial regulators and supervisors have increased their demands for data from the private sector since the recent financial crisis, at times straining resources and challenging regulatory reporting practices that were historically designed for specific purposes. There is a growing consensus that these data should be considered assets that should be actively managed, illustrated by the increasing employment of Chief Data Officers and the creation of macroprudential authorities focused on analyzing threats to financial stability. Thus, a more holistic approach is needed to classify, collect and analyze data. This article describes how data and information standards, along with the use of newer technologies, can help improve the quality of data and make data more useful to firms and regulators, and allow for financial stability monitoring, without imposing undue burden on financial institutions.