Mr. Carlos Sanchez-Munoz, Mr. Paul A Austin, Alicia Hierro, and Ms. Tamara Razin
The 2019 Annual Report of the IMF Committee on Balance of Payments Statistics (the Committee) provides an overview of recent trends in global balance of payments and international investment position statistics, summarizes the Committee’s work during 2019, and presents the work program of the Committee in the coming year.
This paper analyzes asymmetries in direct investment positions reported in the
Coordinated Direct Investment Survey (CDIS) following a top down approach.
First, it examines asymmetries at global level; second, it examines asymmetries between
CDIS reported and derived data for individual economies; and third, the paper analyzes
data at bilateral economy level.
Then, the paper explores seven main reasons for asymmetries, including those arising
even when economies follow international standards.
Finally, the paper includes a section on addressing bilateral asymmetries and concludes
with specific planned actions to reduce asymmetries, including initiatives led by
Concerns about excessive variability in bank risk weights have prompted their review by
regulators. This paper provides prima facie evidence on the extent of risk weight
heterogeneity across broad asset classes and by country of counterparty for major banks in
the European Union using internal models. It also finds that corporate risk weights are
sensitive to the riskiness of an average representative firm, but not to a market indicator of a
firm’s probablity of default. Under plausible yet severe hypothetical scenarios for
harmonized risk weights, counterfactual capital ratios would decline significantly for some
banks, but they would not experience a shortfall relative to Basel III’s minimum
requirements. This, however, does not preclude falling short of meeting additional national
supervisory capital requirements.
This Coordinated Direct Investment Survey Guide (Guide) has been prepared to assist economies in participating in the Coordinated Direct Investment Survey (CDIS). The CDIS is being conducted under the auspices of the Statistics Department of the IMF across a wide range of economies. The survey is conducted simultaneously by all participating economies; uses consistent definitions; and encourages best practices in collecting, compiling, and disseminating data on direct investment positions. The CDIS is thus an important tool in capturing world totals and the geographic distribution of direct investment positions, thereby contributing to important new understandings of the extent of globalization, and improving the overall quality of direct investment data worldwide. As of the writing of this updated Guide, more than 100 economies participate in the CDIS.
The Seventh PMR includes: (i) a discussion of progress made over the last year on the actions corresponding to four Management Implementation Plans (MIPs) that were classified as still “in progress” in the previous PMR; and (ii) an assessment of the progress made in achieving the high-level objectives in three areas directly related to those MIPs. In addition, an update on substantive issues related to five older MIPs agreed since 2007 is provided at the end of the report. Three new evaluations have been completed by the IEO since March 2014. In July and August 2015, Management issued the MIPs in response to these evaluations. Given that only a short time has passed since their completion, progress in addressing the actions contemplated in those MIPs will be discussed in the next PMR.
International Monetary Fund. Monetary and Capital Markets Department
This report is an overview of the performance of the European Banking Authority (EBA) against its mandates, given economic conditions prevailing in the banking sector in the European Union (EU). Banks remain a key contributor to the EU financial and professional services industry. Outlook for the sector remains challenging as asset quality has been deteriorating. Priority should be given to increasing its supervisory convergence and quality assurance tasks; regulatory and supervisory actions; and strengthening transparency and the reliability of data.
As a part of the proceedings of the Eleventh Annual Meeting of the Board of Governors of the International Monetary Fund, an Informal Session on “Recent Developments in Monetary Analysis” was held on September 25, 1956. The three papers which were presented at that Session by Dr. M. W. Holtrop, President of De Nederlandsche Bank, Dr. Paolo Baffi, Economic Adviser to Banca d’Italia, and Dr. Ralph A. Young, Director of the Division of Research and Statistics, Board of Governors of the Federal Reserve System, are reproduced below, together with the background paper, “Monetary Analyses,” prepared by the Statistics Division of the Research and Statistics Department of the International Monetary Fund.