1 A SET OF KEY FINANCIAL INDICATORS Working Party on Financial Statistics meeting Paris, 29 November - 1 December 2010 Isabelle YNESTA National Accounts and Financial Statistics OECD Statistics Directorate

2 INTRODUCTION  Importance of timely, frequent and comparable statistics.  Transformation of basic data into meaningful indicators: To analyse the behaviour and performance of the various institutional sectors of the economy; To carry out cross-country comparisons.  The OECD Secretariat will construct these indicators from financial accounts and financial balance sheets for all OECD countries.  The choice of such indicators will be guided by comments received from WPFS delegates.

3 BACKGROUND  The need for timely, frequent and comparable indicators was confirmed by the results of two OECD surveys: 2008: user survey on financial accounts in the framework of a quality review of OECD databases; 2009: survey entitled “Proposal for financial indicators”.  June 2010: CSTAT’s draft Programme of Work and Budget includes a number of activities to increase the timeliness and frequency of key financial statistics.  October 2010: CMF Delegates confirmed the usefulness of more frequent data.  2010 WPFS meeting: the Secretariat proposes a set of macro- financial indicators for a random selection of OECD countries.

4 Financial indicators derived from financial accounts (transactions)  Financial accounts enable to draw useful indicators which Give a picture of the short-term behaviour of institutional sectors Show reactions to market events Examples of indicators:  G7 – Net financial transactions of total economy, as a percentage of gross domestic product (GDP).  General government deficit, as a percentage of GDP.  Households net financial transactions, as a percentage of gross disposable income (GDI).

5

6

7

8 Financial indicators derived from financial balance sheets  Financial balance sheets offer a number of meaningful indicators which Measure the wealth of each institutional sectors Provide information on the sectoral or economy-wide position and performance. Examples of indicators:  Contribution of each institutional sector to debt of the economy in 2009, as a percentage of GDP.  Non-financial corporations debt-to-equity ratio.  Leverage of the banking sector, as a percentage of total equity.

9 Financial indicators derived from financial balance sheets (Cont.)  General government debt, as a percentage of GDP.  Financial net worth of general government, as a percentage of GDP.  Households financial net worth, as a percentage of GDI.  Households total debt, as a percentage of GDI.

10

11

12

13

14

15

16

17 Conclusions  OECD financial indicators Calculated by the Secretariat for all OECD countries. Based on OECD financial accounts and financial balance sheets databases. Disseminated first on an annual basis, then on a quarterly basis.  With the aim of delivering useful, comparable and relevant information to users and analysts.  A first selection that can progressively be improved and expanded.

18 Conclusions (Cont.)  The dissemination of these OECD financial indicators is under discussion: Either a separate publication. Or an expanded and renamed version of “National Accounts at a Glance”.  Once quarterly data is available, a quarterly press release is also envisaged, depending on countries’ coverage.  All indicators along with the underlying data will be on the OECD statistical website.

19 Conclusions (Cont.)  Delegates are invited to Discuss the relevance and the presentation of the indicators shown in the document COM/STD/DAF(2010)12. Agree on their dissemination.  The OECD Secretariat thanks the delegates and all financial experts for their co-operation and contributions to this project during the past year.

20 THANK YOU FOR YOUR ATTENTION