Case Study — 8 Feb, 2023
A Central Bank Gains Market Intelligence to Support its Supervision and Stability Roles
By Aleix De Llorens Cabre and Mohsin Ali Khan
THE CLIENT:
A central bank in EMEA
The tightening of financial conditions stemming from rising interest rates and the appreciating U.S. dollar viz-a-viz other currencies has introduced challenges for central banks, particularly on the financial stability front.[1] Add concerns about a potential recession, and central banks have a lot to handle with supervision and stability mechanisms taking center stage.
USERS:
The banking supervision ("supervision") and financial stability ("stability") teams
The supervision team at this central bank in EMEA is responsible for ensuring that the financial institutions licensed within the country operate safely and maintain sound financial health. This requires undertaking in-depth financial analysis of the institutions, monitoring any breaking news and tracking developments in local and international markets. The stability team, on the other hand, monitors the strength of the financial system and is responsible for identifying any potential risks, stress testing and formulating policies to maintain a strong and resilient financial system. Both teams work closely together as part of the same business unit and needed access to comprehensive and timely information to stay on top of developments.
Pain Points
Members of the supervision and stability teams often spent countless hours manually gathering and validating data. They wanted to find a single source of reliable information, in-depth research and advanced analytical tools that could help streamline their daily workflows. This would provide:
- An efficient one-stop solution to address the needs of both teams.
- The ability to easily monitor financial institutions operating within the country to understand key developments.
- Access to in-depth financials and fundamental data to perform complex analysis.
- Details on the credit landscape at an entity, industry and country level within EMEA and abroad to assess creditworthiness.- A way to track current and historical capital markets activities to stay abreast of changing conditions.
The teams were aware that IHS Markit and S&P Global had merged at the beginning of 2022 and now had an even more extensive set of capabilities. They contacted S&P Global Market Intelligence (Market Intelligence) to learn more about the company's offering.
The Solution
Market Intelligence specialists first described the S&P Capital IQ Pro desktop, a robust platform that provides a one-stop solution for essential intelligence, with access to unrivaled data, tech-forward productivity tools, news and research. This would provide much of the information the teams were looking to have at their fingertips. The specialists then described RatingsDirect®, the official desktop source for credit ratings and research from S&P Global Ratings. Together, these capabilities would enable the banking teams to:
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Evaluate the financial strength of institutions |
The Premium Financials dataset provides standardized data for 5,000+ financial, supplemental and industry-specific data items for 150,000+ companies globally, including 95,000+ active and inactive companies across multiple industries.[1] Data is available at numerous frequencies and point-in-time representations of a financial period include press releases, original filings and restatements. |
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Get a comprehensive view of global credit risk |
RatingsDirect analyzes credit performance and trends across industries, companies and securities around the world. It provides access to 20+ years of ratings history spanning: 9,500+ issuer ratings, 79,000+ securities and 936,000+ research articles. It also provides credit research that captures independent and objective credit opinions with local perspectives within a global context. Users can leverage top stories and the latest sector highlights tailored to their specific needs. RatingsDirect also offers analytically adjusted financials with access to analyst-adjusted financial statements for 960+ global banks. This supports consistency and comparability of credit risk analysis. |
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Round out the story with supplemental data |
Transcripts review data on earnings, M&A activity, company conference calls and special calls. The data also comes in a machine-readable format with metadata tagging. Key Developments provide information on 1+ million developments, based on 160+ standardized topics. This includes 20,000+ news sources, such as press releases and regulatory filings. Ownership provides detailed historical equity ownership data on 90,000+ public and private companies, institutional investment firms, mutual funds and insiders/individual owners. |
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Save time with productivity enhancing tools |
S&P Capital IQ Pro is a one-stop solution for essential intelligence. A smart screener enables users to instantly find information across companies, news, documents, research, transcripts and more. Competitors zeros in on peer groups for particular companies. An Excel Add-in and suite of office tools seamlessly powers proprietary models and streamlines presentations. Users can access a library of hundreds of ready-to-use models and templates, or partner with S&P Global Market Intelligence's support analysts to build their own. It is possible to integrate data from Excel to PowerPoint or Word with fewer errors and refresh formulas in Excel with just one click. |
Key Benefits
Members of the teams saw the power of the one-stop solution and subscribed to the offerings discussed. They are now able to obtain comprehensive and timely data and research on an easy-to-use and powerful platform, freeing time previously spent on data collection and validation for more value-added activities. Today, they:
- Receive alerts on news and key developments that affect the financial markets.
- Monitor financial institutions for early warning signals of any deterioration, such as movements in credit default swaps and equity prices.
- Automate data access through bespoke Excel templates specifically created for the team.
- Utilize screening and report building tools to perform custom analysis.
- Obtain credit profiles of individual financial institutions and the industry overall through credit rating reports and a variety of other reports, such as the Banking Industry Country Risk Assessment (BICRA).
As ESG gains prominence in the region, members of the teams are exploring S&P Global Sustainable1's extensive ESG offering to determine how it can benefit them in their strategy formulation. With detailed environmental data, ESG Scores and much more, there is a great deal of information that can help the team with their analysis and decision-making.
[1] Coverage as of January 2022.
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