Financial stability analysis: insights gained from consolidated banking data for the EU

Stefano Borgioli, Ana Cláudia Gouveia and Claudio Labanca

No 140, Occasional Paper Series from European Central Bank

Abstract: This occasional paper explores the Consolidated Banking Data (CBD), a key component of the ECB statistical toolbox for financial stability analysis. We show that non-consolidated, host-country Monetary Financial Institutions (MFI) balance sheet data, which constitutes a key source of input into monetary analysis, are a rather weak proxy for consolidated, home-country data and therefore cannot easily substitute CBD for the purposes of macro-prudential assessment. In addition, it is argued that, notwithstanding the relevance of large banks, medium-sized and small banks must also be taken into account in financial stability analysis, given their relevance in several EU countries and their different business models. A discussion follows on how aggregate data, broken down by bank size, can be used to complement micro data, in particular by signalling where and what to look for, again highlighting the differences between large banks on the one hand and small and medium sized banks on the other. JEL Classification: C82, G21

Keywords: banking indicators; consolidated banking data; macro-prudential analysis (search for similar items in EconPapers)
Date: 2013-01
Note: 339024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbops:2013140

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