Item 3: Units and Sectors

Slides:



Advertisements
Similar presentations
An Overview of the Financial System chapter 2. Function of Financial Markets Lenders-Savers (+) Households Firms Government Foreigners Financial Markets.
Advertisements

The financial sector -subsectors, units and main data issues Workshop on the Implementation of the 2008 SNA in EECCA countries and linkages with BPM6 and.
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill /Irwin Chapter One Introduction.
An Overview of Financial Markets and Institutions
The Financial Corporations Sector, its subsectors and Institutional Units STATE STATISTICAL COMMITTEE OF AZERBAIJAN REPUBLIC Istanbul, May 6-8, 2015.
Lecture # 2 Financial Institutions
New financial sector delineation in ESA 2010: First assessment for the financial accounts in Austria Workshop on SNA 2008 / ESA 2010 OECD - October 2011.
3-1 Chapter 3 Financial Intermediaries. 3-2 Deficit Sectors Financial Intermediaries Claims Surplus Sectors $ Claims $$
Finance THE BANKING SYSTEM. Finance Lecture outline  The types and functions of banking  Central banking  Commercial and investment.
©2007, The McGraw-Hill Companies, All Rights Reserved Chapter One Introduction.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill /Irwin Chapter One Introduction.
University of Palestine International Business And Finance Management Accounting For Financial Firms Part (3) Ibrahim Sammour.
Copyright 2010, The World Bank Group. All Rights Reserved. 1 GOVERNMENT FINANCE STATISTICS COVERAGE OF THE GFS SYSTEM Part 1 This lecture defines the concept.
African Centre for Statistics United Nations Economic Commission for Africa Short overview of institutional sectors accounts Clementina Ivan-Ungureanu.
Statistics on Non-Bank Financial Sector: Experience of Central Bank of Turkey Aycan Ozek Statistics Department Deputy Director Joint National Bank of the.
Copyright 2010, The World Bank Group. All Rights Reserved. Introduction to the SNA, advanced Lesson 2 Institutional sectors 1.
An Overview of the Financial System chapter 2 1. Function of Financial Markets Lenders-Savers (+) Households Firms Government Foreigners Financial Markets.
Eurostat Item 3: Units and Sectors ESTP course on National Accounts ESA 2010 Luxembourg, June 2015 Eurostat.
Finance (Basic) Ludek Benada Department of Finance Office 533
Structure of Banking Industry
INSTITUTIONAL UNITS AND INSTITUTIONAL SECTORS Peter van de Ven Head of National Accounts, OECD NBS-OECD Workshop on National Accounts Guangzhou, December.
FINANCIAL INSTITUTIONS – OVER VIEW Chapter 1 Dr. BALAMURUGAN MUTHURAMAN.
METAC Workshop March 14-17, 2016 Beirut, Lebanon National Accounts Compilation Issues Session 8: General Government.
Economics 2154 Money. Based on Mishkin/Serletis The Economics of Money, Banking, and Financial Markets Fifth Canadian Edition Pearson copyright 2014.
Chapter 11: Financial Markets Section 1: Saving and Investments pgs
Placement with Financial Institutions
FINANCIAL MARKETS TYPES
Investment Management
Overview of Market Participants
AK/ECON Money, Banking and Finance A Fall 2016
Module 22 Financial Sector
An Overview of Financial Markets and Institutions
EU-regulations on financial accounts
Commercial Bank Operations
FE101: Chapter 1 Corporate Finance and the Financial Manager.
Financial Corporations
Sector Accounts Leonidas Akritidis
Non-profit institutions serving households (NPISH)
Institutional sector accounts
Distributive transactions
An Overview of the Financial System
Institutional units according to ESA 2010 Market and non-market output
FINANCIAL CORPORATIONS SECTOR
Institutional sector accounts
Institutional units Martin Kellaway
Distributive transactions
External sector statistics - Introduction to conceptual framework
Non-profit institutions serving households (NPISH)
Institutional units according to ESA 2010
Institutional units according to ESA 2010 Market and non-market output
Item 7: Imports and Exports
Sector Accounts Leonidas Akritidis
Sector S.11 Non-financial corporations
FINANCIAL INTERMEDIATION
Item 7: Imports and Exports
Item III.7: Delineation of financial sub-sectors
Sectors and sub-sectors
Part III. Sector Accounts Arij in ‘t Veld
External sector statistics - Introduction to conceptual framework
Non-profit institutions serving households (NPISH)
The OECD Task Force on Financial Services Recommendations of the OECD Task Force on Financial Services in National Accounts, 9-11 May 2004 Anders Nordin.
Sector Accounts: Financial Corporations
Sectors and sub-sectors
GENERAL GOVERNMENT Marga Hüttner.
Specific units Martin Kellaway
ESTP Course Balance of Payments – Introductory course Paris, May 2014 Primary Income.
Institutional units Martin Kellaway
External sector statistics - Introduction to conceptual framework
Institutional units Martin Kellaway
Presentation transcript:

Item 3: Units and Sectors ESTP course - ESA 2010 National Accounts Luxembourg, 30 May - 3 June 2016 Eurostat

Units and Sectors Limits of the economy Institutional units Institutional sectors

Limits of the economy Activity of units that have centre of predominant economic interest on economic territory (resident units)

Limits of the economy Economic territory, includes geographical including free zones national air-space territorial waters continental shelf territorial enclaves oil/gas reserves

Limits of the economy Economic territory, excludes Extraterritorial enclaves GG agencies of other countries institutions of the EU international organisations

Centre of predominant economic interest Location where a unit engages in economic activity indefinitely or for more than one year Owners of land and buildings

Resident units Production, finance, insurance or redistribution activity Consumption Owners of land and buildings

Resident units - Households Resident providing periods spent abroad less than one year, includes: border workers seasonal workers tourists, businessmen, crew members locally recruited staff of extraterritorial enclaves Students – always resident irrespective of study time abroad

Institutional units Decision-making units autonomy of decision of the entity own goods and assets take economic decisions accountable at law incur liabilities complete set of account (ability not publication) households

Institutional units Head offices and holding companies Groups of corporations Special purpose entities Captive financial institutions Artificial subsidiaries Special purpose units of general government

Institutional sectors Corporations (incl Quasi Corporations) Non-financial (S.11) Financial (S.12) Government (S.13) Households (S.14) Non-profit institutions (NPISH) (S.15) Rest of the World (S.2)

Non-financial corporations Principally engaged in production of market goods and non-financial services private corporations co-operatives and partnerships public producers recognised as separate units non-profit institutions serving corporations head offices controlling a group of corporations SPEs private and public quasi-corporations

Focus on…Quasi-corporations Bodies without legal status, but which meet the following criteria: Keep a complete (separate) set of accounts Economic and financial behaviour that is different from the owners and similar to corporations Includes unincorporated bodies owned by households and government – difficult borderline issue to decide what behaviour is similar to corporations!

Financial corporations Principally engaged in financial intermediation and financial auxiliaries Financial intermediation means acquire assets and incur liabilities on own account transform/repackage maturity, scale, risk Financial auxiliaries facilitate financial intermediation, but do not acquire assets or incur liabilities

Financial corporations – sub-sectors Central bank (S.121) Deposit-taking corporations, except the central bank (S.122) Money market funds (MMF) (S.123) Non-MMF investment funds (S.124) Other financial intermediaries, except insurance corporations and pension funds (S.125) Financial auxiliaries (S.126) Captive financial institutions and money lenders (S.127) Insurance corporations (S.128) Pension funds (S.129)

S.121 Central Bank Definition: Examples: financial corporations and quasi-corporations whose principal function is to issue currency, to maintain the internal and external value of the currency and to hold all or part of the international reserves of the country Examples: the national central bank, including when it is part of a European system of central banks central monetary agencies of essentially public origin (e.g. agencies managing foreign exchange or issuing currency) which keep a complete set of accounts and enjoy autonomy of decision in relation to central government

S.122 Other Monetary and Financial Institutions Definition: deposit-taking corporations except the central bank subsector (S.122) includes all financial corporations and quasi-corporations which are principally engaged in financial intermediation and whose business is to receive deposits from institutional units and to grant loans and/or to make investments in securities

S.122 Other Monetary and Financial Institutions Examples: commercial banks, 'universal' banks, 'all-purpose' banks savings banks post office giro institutions, post banks, giro banks rural credit banks, agricultural credit banks cooperative credit banks, credit unions specialised banks (e.g. merchant banks, issuing houses, private banks) electronic money institutions principally engaged in financial intermediation

S.123 Money market funds (MMF) Definition: financial corporations and quasi-corporations, except those classified in the central bank and in the credit institutions subsectors, which are principally engaged in financial intermediation. Their business is to issue investment fund shares or units as close substitutes for deposits and to make investments primarily in money market fund shares/units, short-term debt securities, and/or deposits Examples: investment funds including investment trusts, unit trusts and other collective investment schemes whose shares or units are close substitutes for deposits

S.124 Non-Money-Market Investment Funds Definition: collective investment schemes, except those classified in the MMF subsector, which are principally engaged in financial intermediation. Their business is to issue investment fund shares or units which are not close substitutes for deposits and to make investments primarily in financial assets other than short-term financial assets and in non-financial assets (usually real estate)

S.124 Non-Money-Market Investment Funds Examples: open-ended investment funds whose investment fund shares or units are repurchased or redeemed directly or indirectly out of the undertaking's assets closed-ended investment funds with a fixed share capital, where investors entering or leaving the fund must buy or sell existing shares real estate investment funds investment funds investing in other funds ('funds of funds') hedge funds

S.125 Other financial intermediaries Definition: financial corporations and quasi-corporations which are principally engaged in financial intermediation by incurring liabilities in forms other than currency, deposits, or investment fund shares, or in relation to insurance, pension and standardised guarantee schemes Examples: security and derivative dealers financial leasing hire purchase and the provision of personal or commercial finance factoring venture and development capital companies export/import financing companies

S.126 Financial auxiliaries Definition: financial corporations and quasi-corporations which are principally engaged in activities closely related to financial intermediation but which are not financial intermediaries themselves

S.126 Financial auxiliaries Examples: insurance brokers, salvage and average administrators, insurance and pension consultants loan brokers, securities brokers, investment advisers flotation corporations that manage the issue of securities corporations whose principal function is to guarantee, by endorsement, bills and similar instruments corporations which arrange derivative and hedging instruments, such as swaps, options and futures (without issuing them) corporations providing infrastructure for financial markets central supervisory authorities of financial intermediaries and financial markets managers of pension funds, mutual funds corporations providing stock exchange and insurance exchange non-profit institutions recognised as independent legal entities serving financial corporations payment institutions (facilitating payments between buyer and seller)

S.127 Captive financial institutions Definition: financial corporations and quasi-corporations which are neither engaged in financial intermediation nor in providing financial auxiliary services, and where most of either their assets or their liabilities are not transacted on open markets Examples: trusts, estates, agencies accounts or 'brass plate' companies holding companies SPEs that qualify as institutional units and raise funds in open markets money lenders, corporations engaged in lending to students or for foreign trade, pawnshops special purpose government funds, usually called sovereign wealth funds, if classified as financial corporations

Special purpose entities (SPEs) What are they? A special purpose entity (SPE) or special purpose vehicle (SPV) is usually a limited company or a limited partnership, created to fulfil narrow, specific or temporary objectives and to isolate a financial risk, a specific taxation or a regulatory risk

Special purpose entities (SPEs) No common definition, but the following characteristics are typical: no employees and no non-financial assets little physical presence beyond a 'brass plate' or sign confirming their place of registration always related to another corporation, often as a subsidiary resident in a different territory from the territory of residence of the related corporations. In the absence of any physical presence an enterprise's residence is determined according to the economic territory under whose laws the enterprise is incorporated or registered managed by employees of another corporation which may or may not be a related one. The SPE pays fees for services provided to it and in turn charges its parent or other related corporation a fee to cover those costs. This is the only production the SPE is involved in, although it will often incur liabilities on behalf of its owner and will usually receive investment income and holding gains on the assets it holds

S.128 Insurance corporations Definition: financial corporations and quasi-corporations which are principally engaged in financial intermediation as a consequence of the pooling of risks mainly in the form of direct insurance or reinsurance Examples: life non-life insurance to individual units or groups of units fire, liability (casualty), motor, marine, aviation, transport, accident, health, financial insurance (provision of guarantees or surety bonds) reinsurance to other insurance corporations insurance bought by an insurer to protect against an unexpectedly large number of claims or exceptionally heavy claims

S.129 Pension Funds Definition: Examples: financial corporations and quasi-corporations which are principally engaged in financial intermediation as the consequence of the pooling of social risks and needs of the insured persons (social insurance). Pension funds as social insurance schemes provide income in retirement, and often benefits for death and disability Examples: funds of single enterprise or a group of enterprises, employees of a branch or industry, and persons having the same profession benefits include can be: paid after the death of the insured to the widow(er) and children paid after retirement paid after the insured becomes disabled

General Government Produces non-market services for individual and collective consumption Redistributes income or wealth Sub-sectors Central (S.1311) State (S.1312) Local (S.1313) Social security funds (S.1314)

Households Consumers Person living in institutions Entrepreneurs (market producers) Producers exclusively for own final use Sub-sectors Employers (S.141) and own-account workers (S.142) Employees (S.143) Recipients of property income (S.1441) Recipients of pensions (S.1442) Recipients of other transfers (S.1443)

Non-profit institutions serving households (NPISH) Separate legal entities Serving households Resources mainly voluntary contributions examples trade unions, political parties, churches, charities; hospitals/universities!

Rest of the World Not strictly sector = non-residents transactions within our economy  Only counter-part (mirror) of national economy Session tomorrow on BOP and rest of the world!