##s allow the banking system to absorb higher losses and stabilize lending during periods of stress. yet, there is no doubt that many challenges still lie ahead of us. regarding financial stability, the following three issues in particular will be important after the dust will have settled : we need to monitor vulnerabilities in the financial system and potential spillovers of financial stability risks. we have to analyse the medium - term implications of crisis - related support measures on financial stability – and the potential effects of a phasing - out of these measures. it will be important to deal with a faster pace of structural change arising from longer - term trends such as digitalization and climate change, affecting both the real economy and the financial 1 / 4 bis central bankers'speeches system. taking an international perspective and sharing data can help answering financial stability - related questions. let me give three examples. 1 monitor vulnerabilities in the financial system risks to the financial system can arise if negative shocks transmit across borders or sectors. vulnerabilities in terms of an overvaluation of assets or an underestimation of credit risks can cause substantial losses for banks and other financial intermediaries if risks materialize. to assess financial stability, it is thus crucial to monitor the build - up of vulnerabilities in the financial system and its exposure to domestic and foreign shocks. global banks can be an important channel of shock transmission. yet, information on banks ’ international activities contained in confidential datasets cannot easily be shared across countries. to close this gap, the international banking research network has initiated common research protocols applied to country - specific micro data that allow to share and compare analytical results rather than datasets ( buch and goldberg 2020 ). 1 the network has analysed the exposure of banks to liquidity shocks, the impact of monetary and macroprudential policies on shock transmission, and the role of banks ’ complexity for risks. one key lesson of these studies is that heterogeneity matters : both bank - specific and country - specific factors shape banks ’ lending response and risks. in addition, central banks are increasingly making these data available to external researchers. inexda ( the international network for exchanging experience on statistical handling of granular data ) is an international cooperative project of central banks, ecb, eurostat and other international organizations and national statistical institutes, with support of the bis. the overall aim is to promote this type of data sharing as it aims to foster the accessibility

claudia buch : data sharing for better policy making introductory statement by prof claudia buch, vice - president of the deutsche bundesbank, at the g20 dgi - 2 workshop on data sharing, virtual event, 24 march 2021. * * * dear ladies and gentlemen, let me, on behalf of the deutsche bundesbank, welcome you very much to this workshop on the g20 data sharing initiative. a very challenging year lies behind all of us. the covid - 19 pandemic has been one of the most severe and devastating shocks to the global economy in decades. global output contracted by about 3. 4 % in 2020, according to oecd estimates. output losses were even higher in germany ( - 5 % ) and the euro area ( - 7 % ). obviously, the pandemic has had severe implications which go far beyond the observable macroeconomic impacts. covid - related health effects and deaths pose a considerable burden on our societies and imply severe suffering. many firms, small and large, are feeling the impact of the lockdown measures and are struggling to keep operations going. given these huge economic and social costs, it is almost impossible to take an optimistic perspective on what the pandemic has done to our societies. if anything, it has shown to all of us that health and economic risks cannot be addressed in isolation. our economies are so closely interwoven that cooperation and coordination of policy responses are essential. hence, we need to find solutions to global problems together. sharing data and information is a core element of these common solutions. detailed health - related information is available globally, the development of vaccines has been promoted through sharing of relevant information, and many analytical projects use detailed granular data to assess the economic impacts of the pandemic. so what does all of this imply for us as central banks and providers of statistical information? let me answer this question through the lens of financial stability. the corona pandemic clearly demonstrated the importance of coordinated and timely policy responses. all over the world, governments took health policy measures to contain the disease from spreading. extensive monetary and fiscal policy measures helped avert turmoil in financial markets and a liquidity crisis in the real economy. these policy measures also shielded the financial system from the corona shock. as a result, the financial system has proven robust – not least thanks to the g20 regulatory reforms implemented after the global financial crisis. regulation is more flexible and less procyclical. higher capital buffer