1

BANK PROFITABILITY (BP)

PROGRESS REPORT

Working Party on Financial Statistics

Paris 2,3 October 2007

D. Campion

STD/NAFS

OECD

2

Current update Process

Electronic questionnaire and Guidelines sent in

November 2006

– Initial deadline set for the end of 2006

IT problems encountered during the process

– Some tables not pre-filled for some countries

– Some consistency checks not working properly

– Problems fixed only in version 4 delivered by consultants at

mid-June 2007

3

Collection of Data

30 countries contributed to the previous update in 2004 Period covered: 2004-2005 (+ revisions of previous years) 26 countries provided data 4 countries provided no data:

Australia, Iceland, Japan and Mexico New electronic questionnaire used by all participants Questionnaires sent back from end December 2006

(Austria, Germany, Hungary and Italy)

to late May 2007

4

Treatment of data and metadata

Transfer of data to Statworks, [ OECD Production database ] Checking of data and footnotes by the Secretariat Only 4 countries met OECD requirements initially:

– Finland, Hungary, Ireland and USA Problems identified for 22 countries for both data and metadata:

– Blanks in series– Break in series not explained (no footnote)– Breaks created by the absence of revision of previous years– Differences between aggregates and the sum of their components– Some inconsistencies between tables, without justification– Missing or outdated footnotes

Detailed message sent to each of the 22 countries with version 4 of the questionnaire

Amended data returned by 19 countries by late September 2007 One revised data set still expected Additional explanations provided by two countries

5

Institutional CoverageTable 1 : Income statement and Balance sheet

2004 edition:

30 countries

Current edition:

26 countries All Banks 16 22

Commercial Banks 18 20

Large Commercial Banks 7 15

Foreign Commercial Banks 7 15

Savings Banks 8 10

Co-operative Banks 6 10

Other monetary institutions - 6

6

Table 2 : Structure of the Financial System

2004 edition:30 countries

Current edition:26 countries

Central Bank 27 22 Other monetary institutions / All banks

Commercial banks Foreign commercial banks

Saving banks Co-operative banks Other monetary institutions

2322181417-

24221913158

Other financial institutions Mortgage credit institutions Development credit institutions Finance companies Other financial institutions

19128

11-

16758

12 Insurance institutions

Insurance companies Pension funds Other insurance institutions

22231-

1719154

All financial institutions 19 17

7

Table 3 : Classification of bank assets and liabilities

2004 edition:

30 countries

Current edition:

26 countries Residents / Non-residents 24 20

Domestic / Foreign currencies 25 23

No breakdown available 4 2

8

Table consistency

Data common to tables 1 and 2 but which sometimes show a discrepancy:– End-year Balance Sheet Total

– Number of institutions

– Number of branches

– Number of employees Possible reasons for inconsistencies:

– Different bank coverage

– Different sources Improvement in consistency:

– 13 countries out of 30 with consistent data in 2004

– 18 countries out of 26 with consistent data in current update

9

Metadata

3 levels:

Footnotes available in the paper publication and in the

dissemination database• 10 Countries not yet responding

Short global methodological notes (half a page)

attached to each country chapter in the table volume

(paper only)• Based on detailed methodological notes

Detailed methodological notes published in a separate

volume (paper only)• Update or validation still expected from 4 countries

10

Data dissemination

21 countries currently available in OECD.stat

– dissemination database available to officials through OLIS

5 other countries available soon

Paper edition to be published by end of year

– 2 volumes

• Financial Statement of Banks

• Methodological Country notes

11

Future updates

2 options:– Yearly update covering 2006– Biennal update covering 2006-2007

Depending on:1. EDG conclusions on improvements to be implemented to

meet IMF requirements to follow the new accounting rules

Changes to be introduced in item coverage of Table 1

2. Secretariat resources