Description

This paper reports the main findings of a pilot project launched in July 2014 by the IMF’s
 Statistics Department to test augmenting the IMF’s financial soundness indicators (FSIs)
 with concentration and distribution measures (CDMs) to capture tail risks, concentrations,
 variations in distributions, and the volatility of indicators over time that simple averages can
 miss. Volunteer participants reported a trial set of CDMs to assess analytical usefulness and
 identify concerns such as confidentiality and reporting burden. The results of the pilot
 suggests that CDMs can help detect financial sector risks, justifying the additional reporting
 burden but that further input from participating countries and potential data users should be
 sought; indeed further refinement of the reporting requirements and the CDMs themselves
 may be needed.

More publications in this series: Working Papers

More publications by: Joseph Crowley ; Plapa Koukpamou ; Elena Loukoianova ; André Mialou