1 OECD HOUSEHOLDS ASSETS & LIABILITIES – Table 7HAL Working Party on Financial Statistics meeting Paris, 2-4 November 2009 Isabelle YNESTA National Accounts and Financial Statistics OECD Statistics Directorate Progress report on data collection and methodology

2 Objectives of the presentation Situation of the OECD households assets and liabilities database. Main results of the methodological survey. Future improvements: proposal for a new classification of households liabilities – Loans AF4. Future developments: additional non-financial assets.

3 Background 2005: data collection on households financial and non- financial assets. 2008: extension of the OECD households assets database by adding liabilities on short-term and long- term loans (AF41 and AF42). The former questionnaire Table 7HA becomes the Table 7HAL.

4 Situation of the OECD households assets & liabilities database (7HAL) The database contains data for 29 countries. Missing country is Iceland. 27 countries report 2008 data. Most countries provide data back to 1995 as requested, except Ireland, Korea, Luxembourg, Mexico and Switzerland. 13 countries cover data for the sector S14 (Households) as requested, and 16 for the aggregated sector S14_S15 (Households and non-profit institutions serving households).

5 Asset Coverage On the financial side: AF52: 16 countries provide its 6 sub-components; AF611: 16 countries provide its 2 sub-components; AF612: among the 24 countries which cover this instrument : 14 report data on pension plans managed by autonomous pension funds and its sub-components; 4 report data on pension plans managed by non-autonomous pension funds and its sub-components; 4 report data on insured pension plans and its sub- components. AF613 and AF614: Few countries report data for these two assets (3 and 2 respectively). On the non-financial side: 11 countries provide total non-financial assets AN; 14 provide data on dwellings AN1111; Only 6 countries report both dwellings and land.

6 Liability Coverage – AF4 Loans 27 countries report data for total loans AF4. 23 countries provide short-term and long-term loans (AF41 & AF42) breakdown. On the short-term side, 14 countries report data for both consumer credit AF411 and other short-term loans AF412. On the long-term side, 13 countries provide both house purchase loans AF421 and other long-term loans AF422.

7 Liability Coverage – AF4 Loans However a few countries can report the required detail at 4-5 digit level. On the short-term side: Consumer credit AF411: among the 16 countries which cover this instrument: 6 countries report data on total revolving and total non-revolving credit (AF4111 & AF4112), of which : o 4 report data on credit cards AF41111 and other lines of credit AF41112; o 4 report data on loans for consumer durables AF41121; o 4 report data on other instalment AF On the long-term side: House purchase loans AF421: among the 18 countries which cover this instrument : 5 countries report data on both mortgage guaranteed AF4211 and unguaranteed AF4212.

8 Situation of the OECD households assets & liabilities database (7HAL) The most complete questionnaires received in 2009 are from Hungary, Italy United States France Spain The entire database is on the OECD data warehouse called OECD.STAT. No paper publication and CD-ROMs are released for the moment.

9 Main results of the methodological survey A more detailed methodological questionnaire has been sent this year to better know sources, methods, definitions and coverage of assets and liabilities of households. 26 countries out of 29 filled out the methodological survey. Only 10 countries can provide data before countries compile quarterly data of which 15 agree to provide the OECD Secretariat with it. Main data sources are Financial and National accounts.

10 Main results of the methodological survey For the finer breakdowns, information come from Monetary Financial Institutions, Insurance companies, Investment funds. Households assets and liabilities data are comparable with the ones reported in the framework of the Financial Balance Sheet (Tables 710 and 720) for 19 OECD countries. The assets AF52, AF611 and AF612 are all evaluated at market prices for most OECD countries.

11 Difficulties encountered by OECD countries vis-à-vis the classification of loans AF4 in the table 7HAL The OECD Secretariat thanks all OECD countries for their report on the type of difficulties they faced to fill out the liability part of the questionnaire, which was a first attempt. Some countries can not report beyond the SNA93/ESA95 requirements (AF41 & FA42). Short-term side: Consumer credit are not only short-term loans. Non-revolving credit are rather considered as long-term loans as their maturity often exceeds one year. However, for some reporting countries, non-revolving credit can be as well short-term loans with a maturity up to one year.

12 Difficulties encountered by OECD countries vis-à-vis the classification of loans AF4 in the table 7HAL Long-term side: The breakdown of house purchase loans between mortgage guaranteed and unguaranteed is not obvious. Under AF422 Other long-term loans, consumer credit exceeding one year are included. To limit these difficulties and to enhance the number of series collected, the OECD Secretariat proposes a new classification of loans.

13 Proposal of a new classification of households loans – AF4 * Secured on a residential property ** Unsecured or secured against other forms of assets

14 Proposal of a new classification of households loans – AF4 Financial instruments at 5 digit level are optional. Other short-term loans AF412 can include house purchase loans with a maturity less than one year. Other long-term loans AF423 can include loans that are neither consumer credit nor mortgage loans. Delegates are invited to comment on this proposal.

15 Future projects Additional non-financial assets: AN Other building and structures (including non-residential buildings); AN1113 – Machinery and equipment; AN12 – Inventories. Removal of financial assets AF613 Other pension plans and AF614 Unfunded pension plans from the questionnaire 7HAL as few countries report data for these two assets (3 and 2 respectively). Delegates are invited to comment on these projects.

16 Conclusions The OECD Secretariat thanks the delegates and all financial experts for their co-operation and contributions to the 7HAL database during the past year. The data collection on financial assets of households has improved compared to last year. However, the number of data series on non-financial assets remained the same. The new data collection on households loans - AF4 is encouraging for a first tentative. The proposal for a new classification of loans can improve the data coverage. The methodological notes by OECD countries are more detailed and therefore very useful.

17 THANK YOU FOR YOUR ATTENTION