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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 population133 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 Data that cover domestically controlled deposit-takers with international operations
on a cross-border consolidated basis are required to compile FSIs as this approach is best
suited for financial soundness analysis. Data on domestically located operations might be
separately distinguished if the authorities believe it would contribute materially to their
financial stability analysis (e.g., in order to illustrate the linkage with other macroeconomic
information). For every other sector, a preferred approach is also outlined. The data
implications of the Guide’s preferred approaches are explained in Chapter 11.
What is meant by the terms “aggregation” and “consolidation”?
5.3 Aggregation refers to the summation of data on gross positions or flows. Under an
aggregation approach, the total positions and flows data for any group of reporting units are
equal to the sum of the gross information for all individual units in the group.134 So, the
group and subgroup totals equal the sum of their component elements and the data on claims
and liabilities between the members of the group are preserved.
5.4 In contrast, consolidation refers to the elimination of positions and flows between
units that are grouped together for statistical purposes. Consolidation can arise at various
levels of grouping. For an individual institutional unit, all intra-unit positions and