Federal regulators can improve their methods of collecting data on the financial industry, according to an Office of Financial Research paper published Tuesday.
Agencies could adjust their practices so that data collection can be “smoother, more efficient, and less costly for themselves and the financial companies that report information to the authorities,” according to a summary of the paper, which notes that the Financial Stability Oversight Council is increasing its use of collected data as it continues to oversee the sector.
The paper also lays out best practices, such as issuing more specific standards and definitions for data collection, while cautioning against “pitfalls” like not adhering to industry data standards.
“More collaboration among regulatory data collectors should be explored to maximize the value of current requirements for data reporting,” OFR said. “Regulators should assess obstacles to collaboration and data sharing, such as data policies, statutory requirements, and technologies, to find ways to harvest more value from current data collections.”