An analytic capacity is required because data on its own does not constitute useful information.  In order for the systemic regulator to be effective, the NIF will need to develop appropriate metrics, and monitor and report changes in system-wide risk levels and patterns.  The analytic part of the NIF would also engage in fundamental research to support the systemic regulator.  In addition, the NIF would provide analytic tools to regulators who oversee individual institutions. The analytic capacity of the NIF would provide essential tools to regulators so they would no longer need to outsource critical activities, such as running a stress test or determining the health of a financial institution.