7.5 Needs of the Central Bank#
Central banks are government institutions but are independent of the ministry or department of finance with the role of ensuring the stability of a country’s monetary or financial system. Central banks can be part of the NSS and are both a producer and a user of statistics. Producing statistics is a core activity of central banks both for policymaking and for communicating and explaining their decisions.
The statistical activities of central banks are often a by-product of its supervisory functions and are generally confined to the monetary and fiscal spheres of the economy, particularly monetary statistics, the balance of payments and economic forecasts.
As well as being responsible for these financial statistics, in some cases, a central bank may also be responsible for the compilation of national accounts, the production of foreign trade in services statistics and the organization of business surveys and some household surveys. In many recent examples, financial accounts are being transferred from central banks to the NSO in order to improve the quality of national accounts (Note: In conformity with UN Statistical Commission decision 51/108 c, it should be noted that in order to comply with the Fundamental Principles of Official Statistics, the compilers of the National Accounts should be independent of the users of these statistics such as the monetary authorities).
A central bank will usually have a statistical unit. It is in the interests of both the central bank and the NSO to maintain a high level of cooperation as this provides key mutual benefits given that each organization is the user of the other’s data. This unit frequently has a research function and is recognised as a scientific unit.
In many cases, the NSO provides data collection for the central bank - particularly in cases when surveys are required, such as household finance and consumption survey. The role of the NSO in providing guidance in data exchange standards to facilitate interoperability and joined up systems applies to the Central Bank as much as to the line ministries making up the NSS.
The following activities could form part of the user engagement strategy for the central bank:
As the lead organization of the NSS, an NSO can provide coordination. Coordinating between the two NSO and central bank on statistical activities and defining a clear division of tasks with respect to the responsibilities for data collection, data processing, data exchange, compilation of primary and derived statistics, reporting to international institutions and the publication of statistical results. Sharing of information between NSO and the central bank due to different confidentiality requirements.
Providing guidance to the central bank on the adoption and use of the latest statistical standards at the international level, and on methodologies and best practices on data production processes.
Provide training events to facilitate the proper understanding of changes in statistical output and the underlying reasons.