Big Data Applications in Monetary Policy and Financial Stability for SEACEN Member Economies: The Case of Bank Indonesia
Published Date: July 2023
Author: Bank Indonesia on behalf of the SEACEN Centre
In 2020, over 80 per cent of central banks surveyed by the Bank for International Settlements reported that they were using Big Data, an increase from some 30 per cent in 2015. One of the leading proponents of Big Data and the associated data analytics toolkit amongst SEACEN members is Bank Indonesia, having developed and utilised Big Data analytics in some 40 pilot projects to strengthen the process of formulating monetary, macroprudential and payment system policies.
The research paper highlights several important aspects of Big Data and the associated analytical toolkit, starting with the many possible uses cases Big Data can be used for and the ever-increasing capability of data analytical techniques. Big data at BI, just as in many other central banks, is used in a variety of ways, including research, monetary policy, financial stability and regulation and supervision. A number of Big Data projects are discussed, and the ensuing policy uses highlighted. Besides introducing many Big Data techniques, the paper also highlights both the analytical opportunities and the operational, practical, technical, financial and resource constraints of implementing Big Data Analytics in a central bank.
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