Data  Governance  Framework:  Bank  of  Canada  

Sid Rajan Bank of Canada

May 16, 2014

The  views  and  opinions  expressed  herein  are  those  of  the  author  and  do  not  necessarily  reflect  the  official  policy  or  posi8on  of  the  Bank  of  Canada  or  any  agency  of  the  Canadian  government.    

Agenda  

•  Bank  of  Canada  sta/s/cs  program  overview  •  Canadian  financial  regulatory  framework  •  Internal  governance  process  •  External  governance  process  •  Current  environment  •  Key  challenges  and  planned  improvements  

 

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Bank  of  Canada  Data  &  Sta/s/cs  Office  •  Mission:  “To  provide  high  quality  data,  informa8on  services  

and  business  support  to  the  Bank’s  Monetary  Policy  and  Financial  System  func8ons.”  

 

•  Key  contribu/ons  –  Monetary  and  credit  aggregates  –  Chartered  bank  data  collec/on  and  analysis  –  Exchange  and  interest  rates  –  Securi/es  database  –  Interna/onal  data  submissions  

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Internal  Governance  –  General  Prac8ces    

•  Centralized  data  contract  management  •  Pooled  resources  –  greater  efficiency  •  Centralized  data  repository  (Data  and  Sta/s/cs  Office)  

–  Transparency  of  data  availability  –  Ease  of  access  

•  Formal  process  to  request  new  data  purchases  •  Structured  approach  to  data  storage  •  Enhancement  of  data  dissemina/on  processes  

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Canada  -­‐  Integrated  Approach  to  Banking  Data  

Na/onal  Sta/s/cal  Agency  (Sta/s/cs  Canada)  

Bank  Regulator  (OSFI)  

Deposit  Insurer  (CDIC)  

Bankers  Associa/on  (CBA)  

Bank  of  Canada  

Data  Sharing  Data  Dissemina/on    

Methodology  Support  Interna/onal  Data  Submissions  

Data  Collec/on  Discussions  with  Filers  

Data  Sharing    

Facilitates  Discussions  with  Banks    

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Internal  Governance  –  banking  data    

•  Mul/ple  BoC  business  lines  with  differing  analy/cal  focus  •  Evolving  needs  and  varying  data  priori/es  •  Significant  requests  compiled  and  presented  to  senior  

management  by  Data  and  Sta/s/cs  Office  (DSO),  with  joint  approval  of  priori/za/on  required  

•  Formal  request  and  ra/onale  required  for  all  new  requests  •  Ongoing  regulatory  data  planning  process  conducted  by  DSO  •  Fill  data  gaps  and  an/cipate  emerging  requirements  •  Provide  analy/cal  context  to  collected  data  

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Canada  –  Financial  Sector  Sta/s/cs  Framework  and  Data  Flow  

Central  Bank  (Bank  of  Canada)  

Bank  Regulator    (OSFI)  

Deposit  Insurer  (CDIC)  

Department  of  Finance  

Na/onal  Sta/s/cal  Agency  

(Sta/s/cs  Canada)  Tri-­‐agency  Database  

Housing  Agency  (CMHC)  

Financial  Sector  Sta/s/cs  

Interna/onal  Agencies  (IMF,  BIS,  etc.)  

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External  Governance  –  banking  data    

•  Work  closely  with  tri-­‐agency  partners  and  Sta/s/cs  Canada  •  Collabora/on  with  interna/onal  agency  partners  (eg:  BIS,  

IMF)  •  Internal  priori/es  considered  alongside  external  requirements  •  Ensure  requirements  are  aligned  and  that  defini/ons  and  

concepts  are  consistently  applied  •  Allow  for  joint  priori/za/on  of  requests  •  Jointly  present  final  requests  to  financial  ins/tu/ons  •  Allow  for  discussion  with  banks  (feasibility,  quality  concerns)  •  Confiden/ality  seangs  applied  for  interna/onal  submissions  

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Current  Environment  –  Balancing  Priori/es  

Domes/c  data  requirements  •  Internal  data  gaps  •  Emerging  policy  needs    

Interna/onal  ini/a/ves  •  G-­‐20  data  gaps  ini/a/ve  •  FSAP  exercise  recommenda/ons  •  Basel  III  requirements  

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Current  Environment  –  Addressing  Data  Gaps  

•  Shared  responsibility  (StatCan/BoC/OSFI/Finance)  •  Enhancements  developed  in  consulta/on  with  tri-­‐agency  

partners  and  in  alignment  with  exis/ng  frameworks  •  Mul/ple  interna/onal  requirements  priori/zed  with  internal  

analy/cal  requirements  in  mind    •  Canada  represented  on  many  interna/onal  working  groups,  

and  historical  contributors  to  most  interna/onal  programs  •  Canada  is/will  be  largely  in  a  posi/on  to  meet  data  gaps  

where  a  conceptual/sta/s/cal  framework  exists  

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Interna/onal  Banking  Sta/s/cs  §  Example  incorpora/ng  interna/onal  requirements,  Canadian  

requirements  and  BoC-­‐specific  requirements  

§  Informa/on  on  geographical  distribu/on  of  assets  and  liabili/es  

§  Enhancements  provide  greater  counterparty  sector  and  maturity  details  –  /ed  to  G-­‐20  data  gaps  ini/a/ves  

   

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Interbank  and  Major  Exposures  Return  

•  Requirement  to  build  an  understanding  of  the  inter-­‐linkages  within  the  financial  system  and  evaluate  the  resul/ng  systemic  risk  –  Concentra/on  risk  –  Spillover  risk  

•  Feed  into  Bank’s  macro-­‐financial  risk  assessment  framework  

•  Enhancements  to  interna/onal  banking  sta/s/cs  complements  this  internal  ini/a/ve  

       

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Challenges  §  Large  scale  mul/-­‐dimensional  returns  (exposures  broken  

down  by  assets  class,  maturity,  currency,  etc.)  

§  Systems  upgrades  (both  internally  and  within  banks)  to  address  evolving  data  demands,  both  in  type  and  volume  

§  Adequate  subject  maier  knowledge  and  tradi/onal  quality  analysis  techniques  

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Bank  of  Canada  Response  to  Challenges  

§  Improved  internal  governance  and  priori/za/on  of  data  requirements  §  Increased  collabora/on  among  tri-­‐agencies,  with  na/onal  sta/s/cal  

agency,  and  with  repor/ng  banks  §  Broadened  network  with  other  central  banks  and  sta/s/cal  agencies    §  Developing  new  data  collec/on  system  which  meets  evolving  data  

demands/func/onal  requirements  §  New  staffing  mix  within  the  Data  and  Sta/s/cs  Office,  new  posi/ons,  focus  

on  training  

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Opportuni/es  for  Further  Improvement  

§  Closer  /es  and  increased  data  sharing  between  the  tri-­‐agencies,  Sta/s/cs  Canada  and  CMHC  

§  Greater  usage  of  risk-­‐based  Basel  capital  adequacy  repor/ng  data  to  supplement  balance  sheet/sta/s/cal  data  

§  Tri-­‐agency  working  group  focused  on  data  ra/onaliza/on  §  Revised  regulatory  data  planning  cycle  –  more  frequent  

communica/on  and  earlier  iden/fica/on  of  key  requirements  

       

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Thank  you  for  your  /me    

Ques/ons?  

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Appendices  

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Appendix  1:  Priori/za/on  of  new  data  requests  

•  Criteria  include:  •  Relevance  to  current  and  future  analysis  •  Relevance  to  mul/ple  departments  •  Availability  •  Quality  of  data  •  Cost  •  Opera/onal  impact  •  Urgency  

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Appendix  2:  DSO’s  Organiza/onal  Structure  

Data  and  Sta/s/cs  Office  

Financial  Sector  Sta/s/cs  

Sta/s/c  al  Analysis  

Financial  Ins/tu/ons  

Capital  Markets  

Data  Management  and  Analy/c  Environment  Support  

Data  Management  

AE  Business  Support  

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Appendix  3  -­‐  Key  Acronyms  

BoC  –  Bank  of  Canada  CBA  –  Canadian  Bankers  Associa/on    CDIC  –  Canada  Deposit  Insurance  Corpora/on  CMHC  –  Canada  Mortgage  and  Housing  Corpora/on  DSO  –  Data  and  Sta/s/cs  Office  FSAP  –  Financial  Sector  Assessment  Program  OSFI  –  Office  of  the  Superintendent  of  Financial  Ins/tu/ons  StatCan  –  Sta/s/cs  Canada    

 

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