Following the Money U.S. Finance in the World Economy (1995) / Chapter Skim
Currently Skimming:
5 ALTERNATIVE DATA SOURCES AND COLLECTIVE METHODS
5 ALTERNATIVE DATA SOURCES AND COLLECTIVE METHODS
Pages 135-150
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 135... ...
Data compilers, for their part, have had to contend with outdated collection methods and demands to collect information on increasing volumes of transactions with limited resources. Clearly, the existing system is under stress, and there is a need to develop alternative data collection methods to improve its efficiency and effectiveness.
|
From page 136... ...
Some of these include Bankers Trust, Chase Manhattan, Citibank, Morgan Stanley, Salomon Brothers, and State Street Bank in the United States, as well as Barclays Bank in the United Kingdom. These global custodians could serve as prime sources of information on international portfolio invest
|
From page 137... ...
pension fund laws and the requirements of the Securities and Exchange Commission (SECJ.2 An advantage of developing this data collection method is that many custodians are now building large telecommunications and information networks. This bodes well for the future development of an automated data collection system {see the discussion on electronic data exchange, below)
|
From page 138... ...
among banking institutions. CHIPS is a private electronic payment system owned and operated by the New York Clearing House Association, whose members are 11 New York money-center banks.4 These systems have grown dramatically with the explosion of domestic and international financial activities.
|
From page 139... ...
The method by which depository institutions secure access to the Fedwire system generally clepends on their volume of use. Institutions with large volumes of securities or fund transfers usually have a computer-to-computer link with their local Federal Reserve bank.
|
From page 140... ...
under BeIgian law. According to a recent FRBNY study "Federal Reserve Bank of
|
From page 141... ...
Clearly, not all the ciata that would be needed to record international capital transactions for balance-of-payments purposes are currently available from Fedwire and CHIPS. The information in the payment anal clearance networks is purposefully kept to a minimum to lower clearing anal settlement costs.
|
From page 142... ...
Currently, industrial countries are working toward a set of common practices and standards to improve clearing and settlement of global trading of securities and multilateral banking transactions.6 Uniform codes of operation and system design to be developed for these financial information networks, under these private and public initiatives, will facilitate the introduction of electronic data interchange as a method! of data collection in the future (see below)
|
From page 143... ...
Indirect benefits also arise from modified business practices, including recluced inventory, better cash management, reduced order time, greater sales through improved customer satisfaction, and more accurate and timely information for decision support. The data stanclar(1 that is taking the lead in the EDI field is EDIFACT- which stands for EDI for administration, commerce, ant} tracte.
|
From page 144... ...
The committee is also committed to the convergence of X12 with the EDIFACT standard. Under the aegis of EUROSTAT, a task force since luly 1991 has been exploring the feasibility of using EDIFACT messages for collecting data on balance of payments and international investment positions.
|
From page 145... ...
In researching the possibilities of using EDIFACT messages for reporting balance-of-payments data, the EUROSTAT task force cleveloped a data flow analysis that traces the information exchanged between the various parties. A summary of the data flows identified by the task force is shown in Figure 5-1.
|
From page 146... ...
Development (OECDJ, and the International Monetary Fund (IMF) ; in some cases as, for example, that of outward direct investment, this might involve additional geographic data if the country of the payee differs from the country in which the direct investment took place, which is relevant for balance-of-payments data)
|
From page 147... ...
FIGURE 5-1 Data flows in EDIFACT for balan BOPDI R Messages sent by nonbank enterprises directly to balanceof-payments compiler, reporting information on amounts received from nonresidents via resident banks, settlements via external bank accounts, current accounts held abroad with nonbanks, nonbanks' foreign assets and liabilities, participation in an international clearing system, or responses to statistical questionnaires. BOPSTA Messages sent by balance-of payments compilers reporting aggregated balance-of-payments data to international statistical bodies and/or other balance-of payments compilers.
|
From page 148... ...
Under the proposed framework, these federal statistical agencies would be able to accept information based on different record-keeping systems (such as payroll, revenue, and cost data based on different clefinitions)
|
From page 149... ...
concepts has required and will continue to require cooperative efforts of the IMF, BIS, central banks, and national statistical authorities. RECOMMENDATIONS · In the United States, the Federal Reserve, the Treasury Department, and the Bureau of Economic Analysis should allocate resources to study the systems architecture of information technology adopted by financial institutions and multinational corporations and to investigate ways to facilitate the development of these automated data collection systems to prepare for the emerging electronic global trading environment.
|
From page 150... ...
(5-5) AS national data compilers strive to adjust to the internationalization of capital transactions, the challenge is how to improve data collection systems to reflect several factors: the needs of fiats users; the growing number and diversity of institutional and private players engaging in international capital transactions; the changing role of intermediaries and financial instruments; the complexity of financial transactions; and the costs versus the benefits of collection.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.