Central banks to collect more in-depth statistics on banks' country risk exposures

Central banks contributing to the BIS international consolidated banking statistics have agreed to collect more complete and detailed statistics on banks' country risk exposures from the end of 2004. The BIS sees these changes as helping enhance the status of its consolidated banking statistics as a key data source for monitoring and analysing international financial market developments.

The improved statistics on banks' financial claims vis-à-vis foreign borrowers will feature in addition:

• separate country breakdowns of banks' on-balance sheet cross-border claims and local claims of their foreign offices on an ultimate risk basis (ie claims secured by a guarantee or collateral are allocated to the country of the guarantee/collateral issuer, not that of the immediate contractual counterparty);
• a sectoral breakdown of total on-balance sheet claims on an ultimate risk basis;
• data on derivatives exposures by country on an ultimate risk basis; and
• separate country breakdowns of guarantees and credit commitments on an ultimate risk basis.

The new agreement among contributing central banks has its origin in a September 2000 report of the Working Group on the BIS International Banking Statistics set up by the Committee on the Global Financial System. This report led to specific proposals for implementation developed in 2001 by a group of statistical experts from central banks in consultation with market participants. The framework for reporting the new statistics is designed to be consistent with banks' own risk management systems. Based on new common guidelines and report forms, central banks will develop appropriate reporting procedures for banks at the national level.