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DRAFT: March 2003
Aggregation and Consolidation of Data
5.1 The analysis of FSI ratios is affected by the extent to which the data used for their
calculation are consolidated. Thus, when constructing FSI ratios, attention needs to be paid to
whether the data reported by entities are on a consolidated basis, and the method by which
the data for the whole of the reporting population107 are aggregated. This chapter explains
what is meant by consolidation and aggregation, and sets out the various approaches. It also
sets out the adjustments required to produce sector-level data.
5.2 While country circumstances and the analytical needs of users should determine the
appropriate approach(es), this chapter identifies approaches for deposit-takers that are
relevant from the standpoint of macroprudential analysis. In particular, there is a need for
data that covers domestic-controlled deposit-takers with international operations on a cross-
border consolidated basis. For each other sector, a preferred approach is outlined. The data
implications of the Guide’s preferred approaches are explained in Chapter 11.
What is meant by the term “aggregation” and “consolidation”?
5.3 Aggregation refers to the summation of gross positions or flow data. Under an
aggregation approach, the total positions and flows data for any group of reporting units
equals the sum of the gross information for all individual units in the group.108 So, the group
107 The term reporting population refers to all entities included in the sector information. The population can
vary depending upon the institutional coverage of the sector.
108 In some instances, aggregated data for a group of units, such as constitute an institutional sector, can be
compiled using information reported by a sample of reporters, together with estimates for those units in the
sector that do not report. Statistically, the more representa