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© 2022 International Monetary Fund
WP/22/212
IMF Working Paper
Statistics Department
Financial Innovation and Statistical Methodological Guidance—Key Considerations
Prepared by Joe Crowley, Marco Espinosa-Vega, Elizabeth Holmquist, Ken Lamar, Emmanuel
Manolikakis, James McAndrews and Holt Williamson*
Authorized for distribution by James Tebrake
June 2022
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
ABSTRACT: Financial risks outside of the traditional banking sector can quickly spread throughout financial systems and lead to disruptions in the real economy. A lack of adequately detailed financial sector statistics can obscure buildups of risks from policymakers and hinder their ability to effectively respond once these risks materialize. In response, authorities worldwide, international organizations, including the IMF, and the Group of 20 (G-20), called for financial reforms and launched efforts to gather information on nonbank financial intermediary (NBFI) activities—including the Data Gaps Initiative (DGI) and enhanced Financial Stability Board (FSB) NBFI data collection. While these initiatives represent significant strides to strengthen NBFI’s data collection, there continue to be gaps in the conceptual and methodological guidance in the financial and macroeconomic statistics manuals on which the FSB, DGI, and national authorities rely; gaps that are increasing in light of increased globalization and the financial sector digitalization. This paper proposes conceptual guidance to help bridge existing and emerging gaps.
| JEL Classification Numbers: | E42, F300, G100, G500 |
| Keywords: | Non Bank Financial Intermediation; Market-Based Finance; System of National Accounts; Crypto Assets |
| Author’s E-Mail Address: | jdcrowley@yahoo.com, Mespinosa@imf.org; Elizabeth.B.Holmquist@frb.gov, EManolikakis@imf.org; JWilliamson@imf.org |
| JEL Classification Numbers: | E42, F300, G100, G500 |
| Keywords: | Non Bank Financial Intermediation; Market-Based Finance; System of National Accounts; Crypto Assets |
| Author’s E-Mail Address: | jdcrowley@yahoo.com, Mespinosa@imf.org; Elizabeth.B.Holmquist@frb.gov, EManolikakis@imf.org; JWilliamson@imf.org |
Title Page
WORKING PAPERS
FINANCIAL INNOVATION AND STATISTICAL METHODOLOGY – KEY CONSIDERATIONS
Prepared by Joe Crowley, Marco Espinosa-Vega, Elizabeth Holmquist, Ken Lamar, Emmanuel Manolikakis, James McAndrews, and Holt Williamson1
Contents
I. INTRODUCTION
II. NON-BANK FINANCIAL INTERMEDIATION IN MACRO STATISTICS
III. FINTECH IN OFFICIAL STATISTICS
IV. MAIN RECOMMENDATIONS
V. CONCLUDING REMARKS
References
BOXES
1. The Data Gaps Initiative (DGI): Goals and Achievements
2. Guidance Notes Related to Non-Bank Financial Intermediation
3. NBFI Data for Financial Stability: Two Examples
4. Central Bank Retail Payment Systems
FIGURES
1. Alignment of Current Definitions with Suggested Updates
2. The Growth and Global Reach of ETFs
3. U.S.: Core and Non-Core Funding of the Financial Sector
4. Runnable Liabilities
5. Non-Bank Payment Service Providers (NBPSPs) Proposed Taxonomy
6. Financial Asset Decision Tree
7. Types of Stablecoins
8. Top Stablecoins by Market Capitalization
9. Hypothetical Classification of Stablecoins
APPENDICES
I. Current NBFI Taxonomy in Official Statistics
II. Recommended Taxonomy Updates
III. Recommended NBFI Subsectors, Potential Sources of Financial Stability Risk and Taxonomy
IV. Proposed NBFI Breakdown
V. On the Categorization of Crypto-Assets in Official Statistics
The authors would like to thank, Juan Sole, James Tebrake, Fabian Valencia, STA divisions, Statistical Innovation Talks seminar series participants, and Evrim Bese Goksu, Bidisha Das, Artak Harutyunyan Padma Sandhya Hurree Gobin, Joji Ishikawa, Inutu Lukonga, Jose Carlos Moreno-Ramirez, Wilson Phiri, Adina Popescu, Kazuko Shirono, and Tao Sun for very helpful comments.
Espinosa-Vega, Manolikakis and Williamson (IMF), Holmquist (Federal Reserve Board) and Crowley, Lamar and McAndrews (independent consultants). The analysis and conclusions set forth are those authors and do not indicate concurrence by the Board of Governors of the Federal Reserve System or any other staff thereof.