Keeping Pace With Data

Collections In A Rapidly

Changing EnvironmentMichael Kraemer

Banking Supervision and Regulation

Federal Reserve Board

Disclaimer

- The views in this paper/presentation are solely the responsibility of the author/s and should not be interpreted as reflecting the views of the Board of Governors of the Federal Reserve System or of any other person associated with the Federal Reserve System

The Road of Data Collections: Pre Crisis

Significant Volume of Data Collections and Validation (Annual Refreshes)

Traditional / Static Reporting

Interagency Collaboration, Streamlining Data CollectionsWell-Defined Business Processes (i.e., PRA – Paper Reduction Act, etc.)

Information Security

Standardized Reporting to Regulators For Effective Monitoring and Analysis

The Road of Data Collections: Crisis

Comprehensive and Timely Aggregate

Financial Data

More-Targeted and Specialized Data

Significant Changes to Business Processes to Respond to Changing Economic Environment

Faster Data Availability

Information Security

The Road of Data Collections: Post Crisis

Ongoing Monitoring and Evaluation of New Data (Aggregate Data And More Specialized Data), and Analytical and Modeling Tools

Improved Collaboration and Communication with Regulatory Agencies (New and Existing)

Information Security

Acceleration and Timeliness of Data Availability For A Wide Range of Financial Institutions, Markets, Instruments, and Transactions

Detailed and Aggregate Data

“To improve both our consolidated supervision and our ability to identify potential risks to the financial system, we have made substantial changes to our supervisory framework. …we have adopted a more explicitly multidisciplinary approach, making use of the Federal Reserve's broad expertise in economics, financial markets, payment systems, and bank supervision.

…we have begun an enhanced quantitative surveillance program for large bank holding companies that will use data analysis and formal modeling to help identify vulnerabilities at both the firm level and for the financial sector as a whole. This analysis will be supported by the collection of more timely, detailed, and consistent data from regulated firms..”

Chairman Ben S. Bernanke. Causes of the Recent Financial and Economic Crisis. Before the Financial Crisis Inquiry Commission, Washington, D.C. September 2, 2010.

The Road of Data Collections: Post Crisis

1) Federal Reserve Reports/Data Collectionshttp://www.federalreserve.gov/reportforms/default.cfm

2) Interagency Collaboration (FFIEC)http://www.federalreserve.gov/GeneralInfo/foia/egov/itstrategicplan/itstrategicplan2007-2010.pdfhttp://www.ffiec.gov/

3) FFIEC Reportshttp://www.federalreserve.gov/reportforms/CategoryIndex.cfm?WhichCategory=3

4) Paper Reduction Act http://www.federalreserve.gov/reportforms/formsreview/RegKK_20110622_omb.pdf

5) Information Securityhttp://www.federalreserve.gov/bankinforeg/interagencyguidelines.htm

6) Chairman Ben Bernanke’s Speechhttp://www.federalreserve.gov/newsevents/speech/bernanke20110505a.pdf

7) Changing Business Processeshttp://www.federalreserve.gov/newsevents/press/bcreg/bcreg20110318a1.pdf

Additional Reading