CENTRAL STATISTICS OFFICE

Presentation to Enterprise Statistics Liaison GroupNovember 2011

Brief Description of CSO’s Arrangements for BOP/IIP data Collection, Compilation and Dissemination

Catherine Finneran, BOP A&D Division November 2011

Presentation Structure

• BOP/IIP work organisation • Data collection• Differences between Foreign Trade Statistics and BOP

Merchandise• BOP monthly, quarterly, annual compilation and

dissemination• Integration of BOP and National Accounts• Co-operation between CSO and the Central Bank of

Ireland• Future developments

1.1 BOP Organisation in CSO

Director General

Director -Macroeconomic Statistics

BOP & Financial Sector Division(Data collection/processing)

BOP Analysis & Dissemination Division

1.2 CSO BOP Compilation Responsibility

• BOP&FS Division Maintenance of Survey Management System (SMS) Conduct of surveys Data processing

• BOP A&D Division Analysis of overall quarterly BOP and IIP results,

publication and dissemination of results Publication and dissemination of FDI, PI and

International Trade in Services statistics Preparation of ECB monthly BOP estimates

2.1 BOP Quarterly/Annual Collection

• New statutory collection system (BPM5 methodology) introduced in 1998

• Surveys conducted via Ministerial Order under the Statistics Act, 1993• BOP SMS (enterprise register and survey registry systems) maintained by

CSO (BOP&FS Division)• Quarterly enterprise surveys issued (smaller companies respond

annually)• Quarterly inquiries issued to Central Bank and NTMA• Foreign Trade Statistics used (BOP adjusted to reflect change of

ownership)• CSO travel data used• Other miscellaneous inquiries (e.g. gov. depts., embassies, charities)

2.2 BOP Quarterly/Annual Collection

BOP SMS - Enterprise Register system - for manufacturing and non-financial companies

maintained largely from CSO sources (CBR in Cork Office), Foreign Trade Statistics, other sources (e.g. media

articles)

- for financial service companiesmaintained largely from Central Bank, Companies

Registration Office and Department of Finance sources

2.3 BOP Quarterly/Annual Collection

BOP Surveys to non-financial companies- a detailed ‘Services’ survey (BOP10) to about 220 companies quarterly and about 260 different companies annually (480 in all); imports/exports data by country

- a detailed quarterly ‘Assets and Liabilities’ survey (BOP40Q) to about 220 companies; positions, flows, valuation changes; income; data by country

- a detailed annual BOP40 Survey to about 260 different companies; same data requirements as BOP40Q

2.4 BOP Quarterly/Annual Collection

BOP Surveys to financial companies- detailed quarterly survey forms sent to IFSC and non-IFSC enterprises; data by country- services, income,transfers data (for non-life insurance enterprises); assets and liabilities data (positions, flows and valuation changes) - surveys are essentially to end investors but institutional investors included where appropriate - smaller companies report same data annually- target enterprise/activity coverage: 100% (full year)

2.5 BOP Quarterly/Annual Collection

Types of financial companies and related surveys

BOP30 Institutional investors incl. brokers - 40 BOP42 Non-life insurance/reinsurance incl. Captives - 250 BOP43 Life insurance/reinsurance incl. Captives - 95 BOP44 Group treasury - 50 BOP45 Asset finance companies, captive and agency treasury, service providers (trustees, custodians, administrators, on own account) - 760

2.6 BOP Quarterly/Annual Collection

Surveys conducted jointly with CBI

OFI1 Investment funds (including Money Market Funds) - 2,800CRS1 Banks - 88

2.7 BOP Quarterly/Annual Collection

Quarterly inquiries to:- Central Bank of Ireland (reserves, other assets and liabilities incl. ‘Target’ balances; income)- National Treasury Management Agency (positions, transactions and income relating to foreign debt and National Pensions Reserve Fund)- National Asset Management Agency (positions, transactions, fees and income)

3. Differences between FTS and BOP Merchandise

The main difference is due to treatment of Goods for Processing in BOP statistics. This is because, in general, BOP is based on change of ownership whereas FTS statistics are based on goods crossing borders.

An example is where a company in Country A ships goods for processing to country B and then sells them to another company in Country C. Suppose the goods are valued at €100 when first shipped, the processing cost is €500 and the mark-up when sold to Country C is €200. The BOP Merchandise would record an export of €800 i.e. 100+500+200 whereas the FTS would record only €100. The BOP services would record an import of services valued at €500.

Other smaller differences are due to estimates for smuggling, cross border shopping etc.

4.1 BOP Quarterly/Annual Compilation

BOP results production Requirements

Quarterly publication/dissemination: 3 months (13 weeks) after reference quarter

Detailed components for ECB, EUROSTAT, IMF and OECD Results analysis

Results for internal individual and team analysis: during Week 9 for the overall survey aggregates; different ‘views’ of data; ‘drill down’ facility within BOPFACTS system

Final corrections, adjustments, etc. in Weeks 10,11 Results output from BOPFACTS in appropriate formats for

different users (IOs and national users)

4.2 BOP Quarterly/Annual Compilation

• BOP quarterly results dissemination Aim is to have all quarterly results available simultaneously

ECB, Eurostat and OECD results prepared for 3-month transmission deadline

IMF results transmitted in 3 month deadline

National publication (20 page release) data issued to meet IMF’s SDDS 3-month deadline

4.3 IIP Compilation

IIP results production, publication and dissemination Quarterly stocks data compiled from stocks data returned and

reconciled with BOP flows

Results incl. country of counterpart detail supplied to ECB as input to Euro area IIP results

Results also supplied to IMF along with Co-ordinated Portfolio Investment Survey (CPIS) geographical data

IIP published quarterly (incl External Debt statistics)

Annual IMF CPIS results published in August

4.4 Annual FDI Compilation

FDI results production, publication and dissemination Annual (end-December) stocks data compiled from data

returned; reconciliation with quarterly/annual FDI flows

Annual results supplied to Eurostat with country and economic activity (NACE Rev2) detail

FDI annual flows and stocks results published nationally in September with geographical and economic activity detail

OECD supplied with results following confidentiality suppressions used by Eurostat

4.5 International Trade in Services

Results included in quarterly BOP release for 11 different Service groups

More detailed results published annually in September giving detailed country breakdown and also cross classifying type of service by main counterpart countries

4.6 Data confidentialityData confidentiality presenting increasing difficulty Arises from very detailed analyses required

(classifications by nature of transaction, financial instrument, institutional sector, country/region of counterpart, NACE Rev2 activity, etc. )

Practical problems Rules for identification and ‘flagging’ Checking of ‘confidential’ cells Suppression of confidential information Major resource burden

5. BOP and National Accounts• BOP Current Account feeds into National

Accounts GDP and GNI results National Accounts LCU and data consistency exercise

• Provide quarterly BOP and IIP data for ROW sector of Financial Accounts (FA): By instrument, by resident sector as far as possible

• Collect resident-resident positions and transactions data for FA: By instrument, by resident sector as far as possible

• Liaise on matters of mutual interest

6.1 Co-operation between BOP and CBI• National Statistics Board established a CSO project to examine

the statistical potential of administrative records (SPAR) in 2003

• A number of public bodies were covered by the SPAR Project (2004-2005), including the CBI

• One outcome of the examination of CBI and CSO data collection was that there was significant duplication of effort and a consequential burden on financial data providers (i.e. financial enterprises) and on the two compilers

• One recommendation from the SPAR effort was that both organisations should examine the possibility of reducing the extent of duplicate collection and, where feasible, make arrangements for a more efficient, value for money approach

6.2 Co-operation between BOP and CBI (contd.)

• As a result of the SPAR Project as well as the ECB requirement for security-by-security reporting, in 2007, new arrangements were introduced whereby the CBI collect quarterly data from banks and investment funds and pass this micro data to CSO for processing into BOP and IIP statistics (as well as meeting certain CBI statistical requirements e.g. BIS data and OFI data); the reporting forms were developed jointly by CSO/CBI

• This arrangement is currently being extended to FVCs and will be further extended to cover the Insurance sector over the next few years

• Meanwhile, the existing quarterly CSO surveys of financial enterprises other than banks, investment funds and FVCs will continue

• This new arrangement has resulted in a deepening of the co-operation between the CSO and the CBI

7. Further Developments

• Further develop joint collection arrangement to cover other financial enterprises

• Prepare for the introduction of new international statistical standards (BPM6, BMD4, SNA.Rev 1)

THE END

Thank you