Bank for International Settlements – BIS

A paper by Shariff Abu Bakar Sarip Abidinsa and Vincent Lee Wai Seng of the Bank Negara Malaysia won the award for best paper by a young statistician at the Irving Fisher Committee on Central Bank Statistics’ 12th biennial conference. The paper, “Machine learning for anomaly detection in money services business outlets using data by geolocation”, looked at the money services business which allow customers to transmit/convert money in Malaysia. Since 2017, licensed operators report transactional data to Bank Negara Malaysia on a monthly basis. The data allow supervisors to monitor the industry off-site. But due to the increasing amount of data and large number of operators, supervisors face challenges in identifying higher risk patterns in a timely way, especially at the outlet level. The paper proposes a supervised machine learning approach to pick up anomalies in outlets on a periodic basis by combining transactional data with outlet information, including data on locations. The test results highlight the benefits of machine learning techniques in allowing supervisors to focus in a targeted way their attention on specific outlets for further on site investigation. #YoungStatisticianAward #IFCconference

The BIS Innovation Hub has launched Project Keystone to explore how technology can enhance the analytical use of ISO 20022 data. The project is a collaboration between the Hub’s London Centre and the Bank of England. Keystone aims to develop a standardised data analytics platform focused on ISO 20022 data. As part of the project, two modules will be developed – one to address the complexities of handling and storing ISO 20022 data, and another to analyse the data. Keystone’s support of analytics capabilities could accelerate the ability of payment system operators to utilize the enriched data contained within the ISO 20022 message scheme for greater understanding of economic conditions, system liquidity, and compliance with ISO 20022 standards. It is intended that Keystone will be an off-the-shelf component that payment system operators can integrate into their own systems. In addition, as Keystone will create a standardised data platform, future users will be able to create and share additional analytics capabilities within the central banking community. The project takes its name from the “key” stone in the middle of an arch that locks all the other stones in place, allowing it to bear weight. Read more here: https://bit.ly/3YPpqoX #BISInnovationHub #ISO20022

📊 Check out the newest data set released on the BIS Data Portal on central bank total assets. It contains historical data on the size of central banks’ balance sheets for 52 economies across the world. 🏛️ Statistics on central banks’ balance sheets play a pivotal role in understanding monetary policy and, broadly, central bank policy actions. The new data set enlarges the BIS offering on central bank statistics, complementing the long series on central bank policy rates. A distinctive feature of the data set is its extensive historical coverage, with series going back to the founding year for most central banks. Data have been compiled in very close cooperation with national central banks, other national authorities and academia. The BIS central bank total assets data set is the latest addition to BIS statistics, supporting the analysis of international financial stability, monetary spillovers and global liquidity. Explore the new data set in the BIS Data Portal, your entry point to global statistics at the heart of international cooperation: https://bit.ly/3Mcz1io

We're excited to announce the upcoming release of a new data set on central bank total assets compiled in close collaboration with central banks. The data set will provide valuable insights into the evolution of central banks’ balance sheet size across more than 50 economies. As part of the BIS key financial and macroeconomic statistics, it aims to provide: - Cross-country comparable data - Extensive geographical coverage for both advanced and emerging market economies - Long temporal coverage, with data going back till the establishment of the central bank, whenever available Release date: August 20, 2024 #BISDataPortal #BISStatistics

Meet Bianca, 👋 a Macroeconomic Analyst in the Monetary and Economic Department at the BIS. She collaborates with central banks to gather financial and economic statistics. She helped build the BIS Data Portal, where users can access a variety of new tools to explore statistics and gain insights on the most relevant topics in global finance and economics. To discover her full video interview, visit our Instagram page: https://bit.ly/3SMwzma #MeetOurPeople #BIS

From the 110 proposals received from innovators around the world for this year’s G20 TechSprint, we’ve shortlisted 15 finalists with the greatest potential for solving the three challenges focussed on sustainable finance. The shortlisted teams move on the next phase in which they have to develop solutions based on their submitted proposals. They must submit their prototypes by 4 October and winners will be announced on 27 November. Check out the finalists and follow along: https://lnkd.in/evHQnjww The BIS and Banco Central do Brasil have joined forces to present the fifth edition of the G20 TechSprint, an international competition that seeks innovative solutions to address common challenges and priorities of the global central banking and regulatory community. IDB Lab and FENASBAC are also supporting the event. #G20TechSprint #SustinableFinance #G20 #TechSprint2024 CVM

Congratulations to our colleague Michael Montijo Michael X. M. who has started as Head of Information Technology and Services (ITS). Michael joined the BIS in 2022 as Deputy Head of ITS and Head of IT Strategy and Governance. He had previously worked at Bank of America. We wish Michael every success in his new role.

The BIS Innovation Hub’s London Centre and the Bank of England have developed a prototype technological solution to enable the monitoring of asset-backed stablecoins’ balance sheets, providing insights into whether the backing assets exceed their liabilities at all times. This data analytics pipeline, which includes data collection, storage and analysis, can support the supervision of issuers of asset-backed stablecoins. It can provide supervisors with near real-time data about 0stablecoins’ liabilities and their backing assets. Pyxtrial can also support supervisors in receiving more frequent and fully-automated reports. This makes the monitoring process more efficient and responsive, helping supervisors to respond faster to potential risks. However, successfully deploying Pyxtrial requires that regulators use a multidisciplinary team to implement and operate it. Project Pyxtrial’s technology is a first step towards a tool that could support supervisors and regulators in proactively detecting issues in stablecoin backing and aid the development of policy frameworks based on integrated data. https://lnkd.in/eDr2Ey8y

The extraordinary events of the past 25 years, including major financial crises, the pandemic and an unexpected surge in inflation, have profoundly tested and shaped monetary policy. Chapter two of this year’s Annual Economic Report looks at what these events taught central bankers about monetary policy. Five lessons are drawn: 1. Forceful monetary tightening can prevent the transition to a high-inflation regime. 2. Central bank asset purchases and lending operations can stabilise the financial system. 3. Intense and prolonged monetary easing has limitations. 4. Communication has become more complicated. 5. Foreign exchange intervention and macroprudential tools can complement monetary policy. Claudio Borio, Head of Monetary and Economic Department, discusses the key implications of these lessons for central bankers and how they can be practically implemented. The key message is that there are limits to what monetary policy can do. Sustainable growth and financial stability require holistic and coherent frameworks in which other policies – prudential, fiscal and structural – also play their part. Read the full chapter here https://bit.ly/3VMiF4a 🎙️ Listen to the BISness podcast with Claudio Borio: https://bit.ly/3VMiHJk #BISAnnualEconReport #MonetaryPolicy #CentralBanks #Inflation

FSI Connect, the BIS's e-learning platform, turned 20 on 1 July. To mark its anniversary, we invite you to look back at how things began, how our platform has developed over the years and where we are heading: https://lnkd.in/ewsvJcKg You’ll find a collection of videos, FSI Connect tutorials you can try out and other materials that tell the story. FSI Connect is available to central banks, supervisory authorities, deposit insurers and other eligible public sector authorities. The FSI Connect library covers primarily international financial regulatory standards and sound supervisory practices, including the latest prudential standards, key guidance on banking and insurance supervision, and accounting and deposit insurance topics. #FinancialStabilityInstitute