The views expressed in this Paper are those of the author and do not necessarily represent those of the IMF or IMF policy. An Update on the IMF-OECD Conference on Strengthening Sectoral Position and Flow Data in the Macroeconomic Accounts, February 28 – March 2, 2011 Manik Shrestha IMF Statistics Department Joint Session of the OECD Working Party on Financial Statistics and the OECD Working Party on National Accounts Paris, December 1, 2010

The Data Gaps In November 2009, the IMF/FSB report to the G20, The Financial Crisis and Information Gaps, identified a need to address data gaps in four main interrelated areas: In November 2009, the IMF/FSB report to the G20, The Financial Crisis and Information Gaps, identified a need to address data gaps in four main interrelated areas: Build-up of risk in the financial sector Build-up of risk in the financial sector Cross-border financial linkages Cross-border financial linkages Vulnerability of domestic economies to shocks Vulnerability of domestic economies to shocks Improving communications of official statistics Improving communications of official statistics The recommendations are later further divided into two categories: The recommendations are later further divided into two categories: Those for which conceptual/statistical framework needs development Those for which conceptual/statistical framework needs development For example, consolidated cross-border exposures For example, consolidated cross-border exposures Those for which conceptual/statistical framework exist and on-going collection needs enhancement Those for which conceptual/statistical framework exist and on-going collection needs enhancement For example, sectoral accounts For example, sectoral accounts 2

Work has started on all 20 recommendations. Work has started on all 20 recommendations. Considerable progress has been made in a number of the recommendations. Considerable progress has been made in a number of the recommendations. Going forward, prioritization and coordination/cooperation among international organizations and G20 economies are essential for the successful implementation of the work program. Going forward, prioritization and coordination/cooperation among international organizations and G20 economies are essential for the successful implementation of the work program. As part of this collaborative effort, IMF is conducting bilateral visits to each G20 economy to consult with the authorities on the challenges, resource implications, and reporting involved in implementing the action plans for addressing 20 recommendations. As part of this collaborative effort, IMF is conducting bilateral visits to each G20 economy to consult with the authorities on the challenges, resource implications, and reporting involved in implementing the action plans for addressing 20 recommendations. 3 Data Gaps

4 G20 Recommendation # 15 The IAG, which includes all agencies represented in the Inter-Secretariat Working Group on National Accounts, to develop a strategy to promote the compilation and dissemination of the balance sheet approach (BSA), flow of funds, and sectoral data more generally, starting with the G20 economies. Data on nonbank financial institutions should be a particular priority. The experience of the ECB and Eurostat within Europe and the OECD should be drawn upon. In the medium term, including more sectoral balance sheet data in the data categories of the Special Data Dissemination Standard could be considered. The IAG, which includes all agencies represented in the Inter-Secretariat Working Group on National Accounts, to develop a strategy to promote the compilation and dissemination of the balance sheet approach (BSA), flow of funds, and sectoral data more generally, starting with the G20 economies. Data on nonbank financial institutions should be a particular priority. The experience of the ECB and Eurostat within Europe and the OECD should be drawn upon. In the medium term, including more sectoral balance sheet data in the data categories of the Special Data Dissemination Standard could be considered.

5 G20 Recommendation # 15 A Working Group A working group created under the auspices of the IAG and chaired by the IMF develops strategy for implementing the recommendation 15. A working group created under the auspices of the IAG and chaired by the IMF develops strategy for implementing the recommendation 15. The working group consists of Kim Zieschang, IMF (Chair); Manik Shrestha (IMF); Paul Van den Bergh (BIS); Christian Dembierment (BIS); Reimund Mink (ECB); Denis Leythienne (Eurostat); Nadim Ahmad (OECD); and Herman Smith (UNSD). The working group consists of Kim Zieschang, IMF (Chair); Manik Shrestha (IMF); Paul Van den Bergh (BIS); Christian Dembierment (BIS); Reimund Mink (ECB); Denis Leythienne (Eurostat); Nadim Ahmad (OECD); and Herman Smith (UNSD).

6 G20 Recommendation # 15 Main Objective Expand the reporting of detailed annual and quarterly sectoral accounts (integrated with flow of funds on a from-whom-to-whom basis) by both G20 economies and other advanced economies. Expand the reporting of detailed annual and quarterly sectoral accounts (integrated with flow of funds on a from-whom-to-whom basis) by both G20 economies and other advanced economies. Consider the possibility of strengthening the Special Data Dissemination Standard with regard to integrated sectoral balance sheet information in the context of the Eighth Review of the IMFs Data Standards Initiatives, provisionally scheduled for the first half of Consider the possibility of strengthening the Special Data Dissemination Standard with regard to integrated sectoral balance sheet information in the context of the Eighth Review of the IMFs Data Standards Initiatives, provisionally scheduled for the first half of 2012.

7 G20 Recommendation # 15 The Conference IMF and OECD is jointly organizing a Conference on Strengthening Sectoral Position and Flow Data in the Macroeconomic Accounts in collaboration with other IAG members at the IMF Headquarters during February 28 – March 2, IMF and OECD is jointly organizing a Conference on Strengthening Sectoral Position and Flow Data in the Macroeconomic Accounts in collaboration with other IAG members at the IMF Headquarters during February 28 – March 2, 2011.

8 G20 Recommendation # 15 The Conference The Conferences annotated agenda is attached to the paper, which has seven sessions: The Conferences annotated agenda is attached to the paper, which has seven sessions: Statistical implications of the global crisis and data gaps with respect to sectoral accounts Statistical implications of the global crisis and data gaps with respect to sectoral accounts Balance sheet approach, flow of funds and whom to whom datasets: their analytical uses and defining a framework for integration Balance sheet approach, flow of funds and whom to whom datasets: their analytical uses and defining a framework for integration Status of the sectoral accounts Status of the sectoral accounts Country practices and challenges in compiling sectoral financial balance sheets and accumulation accounts Country practices and challenges in compiling sectoral financial balance sheets and accumulation accounts Country practices and challenges in compiling sectoral non-financial balance sheets and accumulation accounts Country practices and challenges in compiling sectoral non-financial balance sheets and accumulation accounts Conceptual issues related to residency and consolidated balance sheets for financial and non-financial corporations (report on recommendation # 13) Conceptual issues related to residency and consolidated balance sheets for financial and non-financial corporations (report on recommendation # 13) Strategy to promote compilation and dissemination of the sectoral accounts Strategy to promote compilation and dissemination of the sectoral accounts

9 G20 Recommendation # 15 The Conference We anticipate about 70 participants from the national statistics offices, central banks, and international organizations We anticipate about 70 participants from the national statistics offices, central banks, and international organizations G20 economies -19 G20 economies -19 other advanced economies - 9 other advanced economies - 9 international organizations -7 international organizations -7 Most countries have already confirmed their participation. Most countries have already confirmed their participation.

10 G20 Recommendation # 15 The Conference The objective of the Conference is The objective of the Conference is to share experiences, discuss the information gaps, and agree on priorities on the compilation and dissemination of internationally comparable minimum set of sectoral balance sheets, accumulation accounts, and flow of funds preferably within three years for G20 and other advanced economies to share experiences, discuss the information gaps, and agree on priorities on the compilation and dissemination of internationally comparable minimum set of sectoral balance sheets, accumulation accounts, and flow of funds preferably within three years for G20 and other advanced economies to agree on technical assistance program to assist emerging market economies to develop sectoral accounts. to agree on technical assistance program to assist emerging market economies to develop sectoral accounts. The report of the conference, which will lay out a way forward in meeting data gaps in sectoral position and flow statistics that incorporates country views on feasibility and national priorities, will be incorporated into the FSB/IMF progress report that will be submitted to G20 finance ministers and central bank governors for their meeting in June The report of the conference, which will lay out a way forward in meeting data gaps in sectoral position and flow statistics that incorporates country views on feasibility and national priorities, will be incorporated into the FSB/IMF progress report that will be submitted to G20 finance ministers and central bank governors for their meeting in June 2011.

11 G20 Recommendation # 15 The Conference The main issues of focus: The main issues of focus: Determining the minimum set of sectoral position and flow data Determining the minimum set of sectoral position and flow data Relative priorities Relative priorities Outreach programs and technical assistance Outreach programs and technical assistance Dissemination of data at the national and international levels Dissemination of data at the national and international levels International cooperation International cooperation