1. Skopje seminar 2-5 October 2013
Jean-Marc Israël
Head of Division,
Monetary and Financial Statistics
ECB
Security-by-security statistics, and Loan-level databases, an overview of the work of the ESCB and prospects
Skopje seminar
2-5 October 2013

2. Overview of ESCB work and prospects
Security-by-security statistics
Centralised Securities Database / Securities Issues Statistics
Securities Holdings Statistics
Loan-by-loan dataset: AnaCredit project

3. Overview of ESCB work and prospects
Security-by-security statistics
Centralised Securities Database / Securities Issues Statistics
Securities Holdings Statistics
Loan-by-loan dataset: AnaCredit project

4. Overview of ESCB work and prospects
Centralised Securities Database (CSDB)
Security-by-security positions data covering
All securities issued by EU residents
All securities issued in euro
All securities potentially held by EU residents
Compiled from commercial data providers + NCBs
Potential to derive transactions – gross issues and redemptions

5. Overview of ESCB work and prospects (cont’d)
Securities Issues Statistics (SEC)
Aggregated positions, gross issues, redemptions and net issues data covering
All securities issued by EU residents
All securities issued in euro
Compiled from NCBs + BIS (for securities in euro issue by non-EU residents)
CSDB to compile SEC? – Integration of statistics is welcome
Advantages and drawbacks being assessed by an Expert Group
Conclusions and way forward for discussion in the WG MFS and WG SEC and ESCB Statistics Committee (in December)

6. Holdings of securities: Experimental data
Production of securities holdings experimental statistics
Experimental (test) data (short-term approach)
quarterly data collection of stocks:
International Securities Identification Number (ISIN code) for identification of securities (“security-by-security”)
Investor country and sector or subsector as defined by the European System of National and Regional Accounts (ESA)
Short- and long-term debt securities; quoted shares; investment funds shares
Accounting rules based on ESA95 (e.g. units, ownership, valuation)
based on currently available security-by-security information which has been linked to information on securities and issuers stored in the ESCB Centralised Securities Data-Base (CSDB)

7. Holdings of securities: Steady-state approach
Production of securities holdings statistics based on a steady-state approach (as from March 2014)
Security-by-security holdings by euro area & EU residents by sector of euro area-EU investor
Security-by-security holdings by Reporting Banking Groups (RBG)
To be collected via ECB Regulation ECB/2012/24 adopted in October 2012
Securities Holdings Statistics Data-Base (SHSDB)
July 2013: Go-live of Stage 1 (sector data)
March 2015: Go-live of Stage 3 (RBG data)

8. Overview of ESCB work and prospects
Security-by-security statistics
Centralised Securities Database / Securities Issues Statistics
Securities Holdings Statistics
Loan-by-loan dataset: AnaCredit project

9. Countries with Central Credit Registers
The current landscape(1/2)
Wide range of information on credit and credit risk data available but large diversity in EU
Monetary policy analysis
& operations
Risk control and collateral management
Financial stability
Statistical and analytical needs
Research purposes
Supervisory process
Countries with Central Credit Registers
Countries with only national micro credit surveys
Countries without a micro credit data reporting system
Countries with only Private Credit Bureaus
Micro credit data are considered relevant for a high number of ESCB and SSM tasks

10. The current state of affairs (2/2)
Overall
Irrespective of the source, lack of harmonisation in
concepts
definitions, and
coverage
of, at least, a defined population of borrowers and a core set of data attributes
Main limitations identified by users derive from
different reporting thresholds and definitions and
lack of common identifiers for borrowers

11. Elements for consideration
Multipurpose shared dataset
harmonise concepts/definitions & establish a unique identification standard for legal entities
investigate the appropriate data sources & set-up the required reporting procedures
(for NCBs/NCAs without CCR or CCRs of limited coverage)
adapt information systems (NCBs/NCAs, the ECB, RAs) also taking into account the integration with other datasets (e.g. business reg.)
all Eurosystem (and SSM) micro credit databases to abide with, at least, the core new harmonised dataset

12. Requirement for a unique identification code for all borrowers
Option 1 – a single pan-European CCR
- Detailed individual harmonised data from NCBs/NCAs to the ECB
- Data stored and administered centrally,
- serving directly all ESCB/SSM users
- ensuring a level playing field
- providing information back to reporting institutions (and borrowers) in participating countries
All NCBs/ other NCAs in euro area/ SSM to fully abide with the new harmonised dataset
The ECB and NCBs/other NCAs to agree on common feedback to reporting institutions
NCBs/other NCAs to face the risk of running parallel systems, if natural persons are to be excluded
The ECB to process and manage a massive amount of data with DQM difficulties
Requirement for a unique identification code for all borrowers

13. Option 2 – a flexible distributed model (1/2)
ESCB-shared database:
core set of data, describing in detail the characteristics of the borrower and of the credit
based on harmonised concepts and definitions.
Layer1
Layer 2
Layer 3
- Large borrowers
- Data collected and stored at individual level
- Unique identification of borrowers
Intermediate borrowers (depending on sectors)
Aggregated data, with distributional measures in the shared credit dataset
NCBs/NCAs collect and store harmonised individual information and report to the ECB aggregated
Where necessary, users may request further details
Smaller borrowers or loans
Harmonised data collected either individually or aggregated by the NCBs but reported as multidimensional aggregates, also with distributional measures
No evidence of the borrower

14. Option 2 – a flexible distributed model (2/2)
Although based on heterogeneous sources of data (existing CCRs, new data collections, surveys or private credit bureaus, depending on national choices), it seems to be flexible and agile, likely less costly and has other advantages :
Multipurpose core set of data (available to all institutional users)
Data attributes mapped to statistical, accounting or prudential standards (also facilitating the link with other datasets)
NCBs/other NCAs and credit institutions to continue running their current systems while serving ESCB users at the same time

15. Possible way forward: a sound legal basis
 Collection of confidential data, as both lenders and borrowers can be recognised
 Possible STC/FSC LEGCO consultation, prepared by the JTF, on appropriate legal solution to support the data collection and related data sharing
 The future legal basis can either be based on:
Council Regulation 2533/98 allowing a wide range of uses, including for the SSM, under governance and confidentiality rules already defined (only euro-area); and/or
A new ECB Regulation under the SSM Regulation possibly covering all SSM countries; however, it is not certain how far the dataset could the eventually be shared with other ECB/ESCB functions and integrated

16. Possible way forward: a proper IT application
New IT application (AnaCredit)
A ‘platform’ to be used for:
the collection, storage, processing and dissemination of analytical credit data on EU-wide scale
And at the same time will allow:
setting up and maintenance of differentiated levels of access to data across the ESCB, depending on recognised uses
the access, through a shared facility, to the extended national datasets which are not part of the ordinary shared database
the connection with other ESCB applications (RIAD, CSDB, SHSDB) as well as other envisaged applications serving SSM