Central banks 'fall short' in analyzing Big Data for financial stability threats, BIS officials say

5 December 2018 9:03am
Central banks need to improve their ability to analyze the increased flow of Big Data that is pouring in from various sources if they are to anticipate financial crises, senior officials of the Bank for International Settlements said..

“Financial markets are flush with data, yet the bigger picture can slip out of sight,” said BIS Deputy General Manager Luiz Awazu Pereira da Silva and Principal Economist Goetz von Peter. “This is where policymakers and market participants fall short time and again.”.

In remarks posted yesterday, they added: “We are still missing a robust framework for understanding the endogenous forces fueling financial crises, which would help to identify potential early warning indicators.”.

Sometimes, the officials said, “market participants simply delude themselves"