Monetary and financial statistics
- What is the cause of the differences between banking monetary statistics data and banking supervision data?
- What are the differences between the statistics on monetary developments in the CR and national monetary statistics?
1. The difference between banking monetary statistics data and banking supervision data
The monetary statistics are financial macrostatistics compiled mainly for monetary policy purposes, while the banking supervision data are designed primarily for monitoring banks' financial soundness. The different purposes of use of the data result in different demands regarding their collection and compilation. This is why the two kinds of data vary in numerous cases. In some cases, data with the same name may even be compiled under a different methodology and thus have different values.
The monetary statistics thus monitor the financial position of a reporting population according to a macroeconomic principle and the statistical outputs are therefore a “compilable” segment of a larger unit, in both the territorial1 (the host country principle) and sectoral senses, as the monetary statistics monitor the sectoral balance sheets of various types of institutions. The balance sheet positions of these institutions should therefore be symmetric. There is another specific requirement in addition to “compilability” of the statistical outputs – time series homogeneity because the basic statistical output unit is not a single datum but a time series. Time series of stock values, transactions2 or the rates of growth of the monitored variable should be defined in a manner allowing a particular phenomenon (financial instrument) to be tracked over time.
The data collection and data compilation methodologies for monetary and supervisory data are governed by the applicable international and national regulations and standards. The specific compilation frameworks include definitions of the set of reporting institutions, the data aggregation and consolidation method, and the breakdown and content of the data monitored. Given the differences, it is necessary to monitor the source of the data used as well as other characteristics defining their content, as various ways of presentation are possible for a number of the data categories, such as taking or not taking into account specific provisions (i.e. the often used terms net and gross asset values), the time series compilation method (i.e. whether it involves a group of entities operating in a given time period, or a group of entities according to the latest time period in the entire time series) etc. When comparing monetary statistics data and banking supervision data, it is also necessary to take into account whether the banking supervision data is on a solo basis, i.e. data solely for stand-alone entities operating in the Czech Republic, including their branches abroad, or data on a consolidated basis, i.e. data for regulated consolidated groups (including domestic and foreign subsidiaries) and stand-alone entities.
Methodological notes on the monetary and regulatory data which clarify the approaches used to compile this data are provided in the section “Statistics > Monetary and financial statistics” and in the section “Supervision, regulation > Aggregate information on the financial sector > Basic indicators of the financial market”. The time series for both these datasets are published in the ARAD application, where users can find additional methodological information. This information is available in the form of methodological sheets on the Methodology tab accessible when selecting the relevant set of indicators.
1 This is the “residential principle”, with the consolidated euro area balance sheet, for example, being compiled from the “aggregated” balance sheets of the individual Member States. Consequently, there should be no overlaps due to the cross-border activities of the reporting bank.
2 One of the bases for calculating a transaction is the difference between two homogeneous subsequent stock values. If these values do not agree because of a different set of reporting agents or changes in the instrument structure, “reclassification” (alignment) must be performed so that the difference is calculated from two comparable values.
3. Main differences between the statistics on monetary developments in the Czech Republic and national monetary statistics
As part of the of harmonisation of monetary statistics in the Czech Republic with the requirements of the E(S)CB, the CNB compiles statistics on monetary developments. The purpose of these statistics is to provide users with monetary data methodologically comparable with the ECB's monetary data for the euro area. In addition, national monetary statistics are compiled by the CNB for its own monetary analysis. They are based on the same statistical principles, standards and definitions as the harmonised statistics on monetary developments (Regulation ECB/2013/33, ESA2010, etc.) although their structure is somewhat different, especially for the monetary aggregates. National monetary statistics were used because at the time they were introduced the time series of the harmonised statistics on monetary developments were relatively short and thus of limited use for analytical purposes.
After the harmonised time series became long enough, the main monetary indicator was changed in 2016 from the previously used M2 from the national monetary statistics to harmonised M3. At the same time, it was decided that compilation of national monetary statistics would be terminated with effect from 31 January 2017 (upon the release of the December 2016 data).
Table: Comparison of the statistics on monetary developments and national monetary statistics
| Statistics on monetary developments | National monetary statistics | |
|---|---|---|
| Money-issuing sector (reporting population) | MFI | MFI |
| Money-holding sector | All non-MFI residents in the CR excluding central government | All non-MFI residents in the CR excluding general government |
| Money-neutral sector | Central government | General government (i.e. including local govt., social security funds and health insurance comp.) |
| M1 | Currency in circulation + overnight deposits (excluding central government deposits) | Currency in circulation + overnight deposits (excluding general government deposits) |
| M2 | M1 + deposits with agreed maturity up to 2 years + deposits redeemable at notice up to 3 months | M1 + deposits with agreed maturity + deposits redeemable at notice + repurchase agreements (no maturity breakdown) |
| M3 | M2 + repurchase agreements + MMFs' shares/units + debt securities up to 2 years | Not defined |
| Net foreign assets | Balance of financial claims and liabilities of the MFI sector vis-a-vis nonresidents | Balance of financial claims and liabilities of the MFI sector vis-a-vis nonresidents |