inclusion, but also reward the good borrowers thereby imparting credit discipline. we just have to look at our willingness to transact on ebay to understand how reputation builds up for effectively anonymous sellers from their transaction records captured on a website. similarly, public credit registry would help create a level - playing field among different sizes of borrowers. 24. third, public credit registers in many countries have gone beyond the credit relationship of borrowing entities with financial institutions. they tap other transactional data of borrowers including payments to utilities like power and telecom for retail customers and trade credit data for businesses. why might such data help? lenders in the formal sector often hesitate to extend a line of credit to new customers due to the lack of credit scores. regularity in making payments to utilities and trade creditors provides an indication of the credit quality of such customers. in turn, credit from the formal sector can become accessible to new borrowers, boosting financial inclusion. as a side benefit, the extent of financial inclusion will likely become more precisely measurable for policy makers. 25. finally, public credit registry can have a profound impact for regulatory purposes. in its absence, only fragmented images are available of credit behaviour and indebtedness. pcr will help in getting to a complete picture that is necessary for supervisors and policy makers to assess credit risk of the entire system. to facilitate this, the pcr must cover the following aspects of the credit data : first, the bank - borrower loan - level data detailing loan terms at time of origination along with data on borrower ’ s economic and financial health. second, the internal and external ratings ( or credit scores ) and their evolution, and where applicable, market - based measures of firm - level and sector - level credit risks. third, bank - borrower loan - level restructuring data with all details. fourth, secondary loan sales and price information. fifth, borrower - debt level default and recovery ( lgd ) data. this would be a good start! who should operate the public credit registry? 26. large public credit registers are operated either by the central banks or state authorities in various countries. they are typically not operated by the private sector, though credit bureaus in some jurisdictions capture many of the items discussed above. in some jurisdictions, the raw data collected by the central pcr is shared with the cbs, which in turn make value addition by pooling data from other sources and come up with further analysis such as credit

- delhi, who is a member of the monetary policy committee ( mpc ) and a regular teacher at the rbi academy, as well as prof n. balakrishna of the cochin university of science and technology, who will both deliver special talks later today. 6. prof. dilip nachane, who would join us in the afternoon, is professor emeritus, igidr - mumbai and was a member of the reserve bank ’ s technical advisory committee on monetary policy ( tac - mp ) and the prime minister ’ s economic advisory council ( pmeac ) for a long time. he will be chairing the panel discussion on the conference - theme. let me also welcome dr d. k. joshi of crisil, ms. pranjul bhandari of hsbc, and dr. samiran chakraborty of the citibank, who are the other distinguished panel members. thank you panelists for devoting your valuable time to the statistics day. 7. let me now move to the theme of today ’ s conference, viz., ‘ new frontiers on statistical methods and information base for central banks ’. statistical techniques are an integral part of economic analysis. an interesting acknowledgement of this is the good share of “ method awards ” in award of the nobel prize for economic sciences. the first nobel in economics in 1 / 6 bis central bankers'speeches 1969 went to ragnar frisch and jan tinbergen for their pioneering work on econometric model building, i. e., for their integration of economic theory and statistical methods. over the years, nobel “ method awards ” have also been awarded for input - output method, national accounts, micro - econometrics, co - integration and arch ( to rob engle, colleague, co - author and dear friend when i was at nyu stern ). 8. the central role of statistical methods in economic analysis is also reflected in their constantly growing share in the curriculum for students in economics and finance. the global financial crisis and its aftermath has been a big structural break to explain which new approaches and methods are gaining ground. macroeconomic forecasters have faced interesting questions during this last decade, as the outbreak of banking and sovereign crises has led to the most basic assumptions behind forecasts being violated. this has also necessitated further effort towards methodological refinements, not just in economic theory but also in statistical methods to test the theory. in many ways, this is an exciting time in my