The Use of Payments Data in Microprudential and Macroprudential Supervision

Venue :Online Seminars
Host Name :The SEACEN Centre
Date From :30 Mar 2021
Date To :30 Mar 2021


Banking supervisors, whether they work for central banks or stand-alone regulatory authorities, are under pressure to deliver real-time analysis of the condition and performance of the banks under their watch.  Moreover, they are constantly seeking more efficient and effective methods of carrying out their supervisory assignments.  Technology has enabled banking supervisors to access and utilize a vastly greater range of data of all types, structured and unstructured, from a multitude of sources.  

Recently, there has been a great deal of attention paid to the use of payments data in supervision.  Payments data have the advantage of being real-time, voluminous, granular, both domestic and cross-border, flowing mostly through banks, and reflecting actual commerce.  Accordingly, if conveniently collected and displayed, they can be extremely useful to banking supervisors to gauge where economic activity may be speeding up or slowing down, what industries might be facing difficulties, whether there are “single points of failure” in the financial sector, and many other useful applications.  

In recognition of this development, The SEACEN Centre has commenced a continuing research and learning activity centered around the use of payments in supervision, both micro (individual institutions) and macro (the banking sector or broader financial sector as a whole).  This workstream, to which staff of SEACEN member banks are welcome to contribute, will result in papers, online seminars, and perhaps a full-length course at some time in the future.  

This online seminar features Dr. Kimmo Soramaki of Financial Network Analytics (FNA), a provider of regulatory and supervisory technology (RegTech and SupTech) to financial institutions and their regulators.  He will discuss some of the applications that have already been put into practice and those that are under development, and he will field questions from the participants.  The seminar will be moderated by Glenn Tasky, SEACEN’s Director of Financial Stability, Supervision, and Payments.