Committee to Establish the
 
National Institute of Finance
Providing the data and analytic tools needed to safeguard the U.S. financial system
Breadth
Is such a large data collection effort feasible?  E-mail
While data volume was once a serious practical concern, the low cost and high performance of modern data processing and storage systems render this concern largely obsolete. The volumes of data handled by the NIF will be comparable to those handled today routinely by existing government agencies such as the National Weather Service.
 
Will the NIF need comprehensive coverage across all industry participants? Why?  E-mail
Comprehensive collection across industry participants is required. Otherwise, problematic contracts and exposures will naturally migrate to avoid supervisory scrutiny. The build-up of exposures by AIG Financial Products Division provides a cautionary example of this phenomenon of "regulatory arbitrage."
Last Updated on Wednesday, 10 March 2010 13:10
 
Does the government have any track record of success in data collection efforts like the NIF?  E-mail
The Interactive Data Project of the Securities and Exchange Commission (SEC) and the modernized Call Report system of the Federal Financial Institutions Examination Council (FFIEC) are two examples of existing initiatives that require financial firms to submit data in standardized formats. Both are both widely viewed as successful initiatives that were implemented sensibly, in stages, without imposing undue or unreasonable burdens on reporting firms. The NIF would build on the expertise and experience regulators have developed through initiatives such as these.
 
How will the NIF handle transactions involving non-U.S. institutions?  E-mail
Data will be required from U.S.-based financial institutions and their foreign affiliates. In addition, foreign institutions would be required to report on transactions conducted in the U.S.
Read more...