On 26 September 2018, the Financial Stability Board (FSB) and the International Monetary Fund (IMF) jointly published their third progress report (the Report) on the second phase of the G20 data gaps initiative (DGI-2).

The data gaps initiative was initiated in 2009 following the financial crisis, to bridge information gaps revealed by the financial crisis on the risks posed by global systemically important financial banks (G-SIBs). DGI-2 began in 2015, filling a substantial data gap by adding granular information on G-SIBs’ bilateral liabilities, to assess the concentration of their largest funding providers and their major funding dependencies.

The Report updates on the progress of DGI-2, namely:

• that progress was made by the participating economies during the second year of the DGI-2, particularly in areas such as shadow banking monitoring, and reporting of data on G-SIBs;
• that challenges, such as inadequate resource allocation, remain and high-level political support is crucial to overcome these challenges;
• that for the first time, an evaluation of year-to-year progress has been produced, this is presented via a ‘traffic light system’ and is included in a table on page 9 of the Report;
• that synergies with other relevant global initiatives are monitored and dialogue with data users is ongoing to enhance the relevance of the DGI-2; and
• that the 2019 DGI-2 work program will continue to include thematic workshops, bilateral meetings, as the continued implementation of DGI-2 is expected from all participating economies.

The Report seeks the endorsement and support of the G20 Finance Ministers and Central Bank Governors (FMCBG) on the next steps towards the completion of the DGI-2 by 2020. The IMF and FSB will continue to monitor the progress of DGI-2 and report back to the G20 FMCBG in H2 2019.