And this, in turn, reveals much about the bank’s ability to manage its risks. Because the quality of the data we receive reveals much about the banks’ ability to comply with BCBS 239. In this regard, the data we collect from banks gives us deeper insights it takes us to another level, if you will. The BCBS Principles for effective risk data aggregation and risk reporting – BCBS 239 for the experts – provide relevant guidance. Against that backdrop, many banks still need to improve their data frameworks. Good data help banks to take good decisions bad data leave them with blind spots, which might prompt bad decisions. We always emphasise this when discussing governance and risk management in banks. The ECB Annual Report on supervisory activities also presents the most important statistics for the periods under review.Īnd the banks themselves also need good data. These include some Pillar 3 indicators, meaning the disclosure requirements in the Basel Committee on Banking Supervision (BCBS) framework aimed at promoting market discipline. As an additional service to the general public and to the banks themselves, since 2016 ECB Banking Supervision has been publishing extensive supervisory banking statistics on its website. But we can, and do, aggregate data and share them in this high-level format. This is why we always maintain the highest standards of data confidentiality. However, data on individual banks are mostly very sensitive, and for good reason. Many people would like to gain deeper insights. This was one of the benefits of being part of the ECB and having access to the shared services, including statistics.īut data on banks are not only of interest for supervisors. And thanks to all the excellent work done in advance, we did. So it was vital to have good data from day one of European banking supervision. Data underpin our judgement, our decisions and our actions. We rely on them to create risk profiles of banks and we rely on them to analyse a bank’s liquidity and its capital. We rely on supervisory data in all aspects of our daily work. Without good data and sound statistics, we would not be able to do our job. Good data help us to rein in errors that might arise when exercising our judgement. That’s why we value good data so highly and rely on them so much. We banking supervisors are aware of these biases, of course. And this is just one of many examples of biased judgement. So people who read this signpost are better able to judge the risks. In reality, travelling by road puts you in much greater danger than travelling by air. Think of all the people who are afraid of flying and prefer to drive instead.
We need a signpost because our judgement is often biased. Well, then as now, statistics might not be a substitute, but they are an indispensable signpost. In the early days of statistics, there were some who warned that “statistics are no substitute for judgement”. Speech by Danièle Nouy, Chair of the Supervisory Board of the ECB, Ninth ECB Statistics Conference, "20 years of ESCB statistics: What's next?", Frankfurt, 11 July 2018
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