Leveraging on Business Intelligence Tools for Micro- and Macro-data Analysis and Research

-Bank Negara Malaysia’s (BNM) experience

Presented by Tai Yoon Foong

Statistical Services Department

Bank Negara Malaysia

MyStats 2013:Promoting Innovation in Economic and Financial Statistics to

Support Policy Making in a Dynamic Environment18 November 2013, Sasana Kijang

Co-organised byBank Negara Malaysia, Jabatan Perangkaan Malaysia,

Malaysia Institute of Statistics

Outline of

Presentation

1. Data Management Framework in BNM

2. Application of BI in BNM

3. Initiatives to Meet User Needs

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Data Management Framework … adoption at BNM

• Data collected must meet current and future needs

• Comprise macro and micro data according to user needs

• Must balance between the statistical needs and cost to the

reporting entities

• Should conform to specific and consistent rules, standards

and definitions in line with international standards, best

practices and compilation methodology

Data Collection

• Repository of all financial, monetary, external and real sector

... Covers the process from sourcing of data to final reporting

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• Repository of all financial, monetary, external and real sector

statistics

• Data transformation and data quality check according to

business rules

Data Warehouse

• Tool used to extract data for analysis, surveillance and policy

formulation

• A combination of tools will be used and may be further

customised to meet business requirements

BI Tool

Scope of Statistics Users

End to end process

1. Data Origination

2. Data Quality and Integrity

3. Data Dissemination

4. Data Integration

Internal

1. Monetary and Economic

2. Regulation

3. Supervision

4. Investment Management and

Foreign Exchange Administration

Statistical Compilation in BNM

Data Management

Monetary & Financial Statistics

1. Banking Statistics

2. Insurance Statistics

3. Payment Systems Statistics

4. Development Financial

Institutions Statistics

Established legal framework that empower BNM to collect statistics

• Central Bank of Malaysia Act 2009

• Financial Services Act 2013

• Islamic Financial Services Act 2013

• Development Financial Institutions Act 2002

Compilation of data

is centralised at

Statistical Services Department

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5. Data Change Management

6. Metadata Management

7. Retention and Archiving

External

1. International Organisations

2. Department of Statistics Malaysia

3. Government Agencies

4. Financial Institutions

5. Public

Foreign Exchange Administration

5. Payment Systems

6. Financial Intelligence

Institutions Statistics

5. Credit Information

Other Statistics

1. External Sector Statistics

2. Macroeconomics data

Reporting EntitiesReporting EntitiesReporting EntitiesReporting Entities1. Banks [61]

2. DFIs [6]

3. Payment System Regulatees [34]

4. Insurance Co. & Intermediaries

[123]

5. Other Companies [3000]

Standards AdoptedStandards AdoptedStandards AdoptedStandards Adopted1. Accounting Standard (e.g. IFRS)

2. International Standard (e.g. ISO)

3. National Standard (e.g. MSIC

2008)

4. Other BNM Standards

Other Statistics

Macroeconomics data

External Assets & Liabilities (micro 2/)

1. Non-resident Counter Party Profile

• Name of Non-residents

• Non-resident ID

• Institutional Sector

• Business Sector

• Relationship with Non-residents

2. Investment Information

• Type of Instruments

Credit Information (micro 2/)

1. Borrower’s Details

2. Application Details

3. Loan Details• Approval Date/Limit• Facility Type• Purpose of Loan• Financing Concept• Repayment Term• Interest/Rebate Rate• Type of Pricing• Maturity Date

4. Account Position

A. Financial Assets and Liabilities (macro1/)

1. Securities• Maturity• Financing Concept• Collateral• Lender• Type/Instruments• Rating• Stock• Issuance Date

2. Loans• Facility• Sector and Purpose

Monetary & Financial Statistics

Cash BOP flows (micro 2/)

1. Inflow and outflow of funds by

• Purpose

• Currency

• Country

2. Payment & receipts by Customers

Statistical Information… collection of micro and macro data

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Macroeconomics data (macro 1/)

1. Real sector

2. Financial

3. External sector

4. Fiscal

• Type of Instruments

• Country

• Currency

3. External Assets & Liabilities Position

• Opening Position

• Transactions

• Valuation & Other Charges

• Closing Position

• Investment Income

• Outstanding Balance• Months and Installments In Arrears• Amount Undrawn• Account Status• Amount Disbursed/Repaid

5. Provision• Impaired Loan Tagging• Month In Arrears• Principal and Interest/Income

Outstanding• Other Charges• Individual Impairment Provision• Impaired Loan Written-back/Written-off

6. Account Collateral

7. Legal Action

• Sector and Purpose• State• Maturity• Country and Currency• Financing Concept

3. Deposits• Customer Type• State• Maturity

4. Other Asset and Liabilities

B. Income and Expenditure (macro 1/)

C. Payments (macro 1/)

1/ data is consolidated by specific dimensions and

institution2/ micro data at transactional level

Various data sources

store in various

repositories based on

subject areas

Output in user friendly

reports with auto update

capability

Overview on Application of BI Tools … improve data access and analysis

Various BI tools

available based

on subject

areas

Various platforms with

multi-dimensional views

that would enable easy

and fast retrieval of

information

• Data transformation

based on business

rules

• Robust data quality

checking leveraging

on BI tools

areas

Leveraging on BI for Analysis and Research

There are 3 main types of BI users in BNM

• Compilers

• Regulators and Supervisors

• Analysts and Researchers

The Compilers … roles play by SSD to ensure timely delivery of quality data

Data Processing

• Perform data quality checks via micro and macro analysis

• Perform data validation based on business-defined rules

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• Setting threshold to detect out-of-trend submission

• Cross data comparison with other relevant sources to ensure data consistency

Application of BI tools to:

• Generate data by different dimensions, different level of granularity

• Extract cross subject area data for comparison

• Apply threshold on the output to detect outlier

• Generate standard reports and update templates for publication and dissemination

The Regulators and Supervisors… users from the financial system stability sector

• Main users of financial data, as well as macroeconomics data for more effective

surveillance

• Use BI to extract data and customise standard reports for periodical analysis and

surveillance

Analytics

1. Generate data by different dimensions

2. Drill down from summary view to transactional details

3. Extract data for trend analysis

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4. Produce summary key financial indicators of banking system for update to BNM’s senior

management

5. Monitor banking institutions’ compliance with liquidity, capital and statutory requirements

6. Carry out risk assessment on the banking system in Malaysia

Report

1. Consume customised standard reports

2. Modify dynamic reports for own analysis and consumption

The Analysts and Researchers …users from policy making departments

• Require broad spectrum of financial and macroeconomics data at micro and macro

level for analysis

• Use BI to extract data for further analysis

Analytics

1. Generate data by different dimensions

2. Filtering information from various dimensions, drill down from macro level to micro level

3. Perform historical trend analysis and forward looking assessment

4. Produce quantitative analysis to support policy development

5. Carry out market assessment to facilitate policy implementation

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5. Carry out market assessment to facilitate policy implementation

6. Monitor key data to assess effectiveness of policies

7. Analyse key trends and developments in the financial industry to identify issues and propose new

policies

8. Assess potential impact and readiness of FIs in complying with proposed new policies

Reports

1. Consume customised standard reports

2. Modify dynamic reports for own analysis and consumption including extracting external data i.e.

from World Bank, OECD and IMF to support analysis.

End User (Requester)

• Submit applications via:

- Hardcopy form

- Email

- Userid Request System

Approver at End User Department

• Seek approval from authorised supervisor

• System Administrator grant access to user upon approval

Statistical Services Department (SSD)

• Assess application

• Assign access right as approved by Director or designated officer

• Notify end user on approval or rejection

Users Access and Responsibilities… ensure confidentiality and accountability

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Responsibilities of end users:

1. End user shall observe confidentiality of data and ensure compliance with relevant information

security policies and procedures

2. Director of end user department to ensure no breach of data confidentiality in his department and

access to information are for valid business purposes

1. Classrooms and hands on training to users

• Reporting requirements

• Data items and database structure

• System and business intelligence tools

2. Clarification and assistance via telephone, email

and face to face discussion

Comprehensive Support to Stakeholders

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3. Focus group meeting and discussion

4. Alert on significant development in data

5. Report generation and preparation

Transformation to Enterprise-Wide System Information Architecture

Initiatives

1. Development of an integrated statistical

system with agile IT infrastructure for end-to-

end data management from data submission,

storage to dissemination

Benefits

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1. More efficient data management Bank-wide

2. Easy and fast access to timely, credible and

relevant data

3. Reduce reporting burden by eliminating data

duplication

4. Ease of IT maintenance and support

Admin & Maintenance

Online Submission

Integration services

Offline Submission

Statistical

Information

Data

Submission

Data

Management

Authentications and User Management

Information

Catalogue

(Universe)Reports

Dashboard

Metadata Management

Master Data Management

Analytics

Signature Verification

(EPKI)Service

DeskOther

Functions

Workflows

Portal

Submission Business Intelligence (BI)

Development of STATsmart … integrated system architecture

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Operational

Database

Data Warehouse

DataMarts

Master Database

Extract, Transform and Loading Systems (ETL)

servicesSubmission

Taxonomy

Forms

Form Converter

Engine

XBRL Database (XDA)

Data Migration

Audit Logs

Historical

Database

Enterprise Data Warehouse (EDW)Taxonomy

Data Model

Thank you