Statistics on Non-Bank Financial Sector: Experience of Central Bank of Turkey Aycan Ozek Statistics Department Deputy Director Joint National Bank of the Republic of Macedonia and ECB Seminar on Statistics October 2-5, 2013 Skopje

Outline 1.Changing Environment 2.CBT’s Experience - Other Financial Intermediaries - Financial Auxiliaries - Insurance Corporations and pension Funds 3. Future Work

Changing Environment Importance of Information - Moderate financial crisis - Better management of financial crisis New approaches in data compilation - Flexible to anticipate - Compatible data sets - International initiatives in data gaps Changing perspective of central banking - Role of central bankers as statisticians - Compilation of monetary and financial statistics - Room for improvement in data quality - Increased data requirements

Changing Environment Emerging Statistical Needs: Move from traditional data collection systems to emerging statistical needs (G-20 data gaps initiative):  Strengthening the coverage of balance sheets  Flow of funds data  Data on non-bank financial institutions  More timely and comparable statistics

Changing Environment The Need for Non-Bank Financial Institutions’ Data: G-20 Data Gaps Initiative Reporting requirements from international institutions (OECD, BIS) Harmonization with international standards (ESA95, MFSM)

CBT’s Experience Central Bank Accounts Balance Sheet / Accounting Records Banking Data Supervisory Reporting Forms Money Market Data Traditional Data Sources :

CBT’s Experience Monetary Sector (enlarged) Non-Bank Financial Sector Government Finance Statistics New Data Sources:

CBT’s Experience CBT Classification of Financial Corporations (S.12): -Central Bank -Other Monetary Financial Institutions -Non-Bank Financial Institutions - Financial Intermediaries - Financial Auxiliaries - Insurance Corporations and Pension Funds

Other Financial Intermediaries Other Financial Intermediaries (S.123) in ESA 95: ‘ ….All financial corporations which are principally engaged in financial intermediation by incurring liabilities in forms other than currency, deposits and/or close substitutes for deposits from institutional units other than monetary financial institutions, or insurance technical reserves.’ (paragraph 2.53)

Other Financial Intermediaries Comparison between other monetary financial institutions and OFIs MFIs Liabilities - from non MFIs deposits and / or close substitutes for deposits OFIs Liabilities - from non MFIs other than currency, deposits and / or close substitutes for deposits

Other Financial Intermediaries Institutional Units in S.123: financial leasing corporations personal or commercial finance corporations factoring corporations security and derivative dealers (on own account) venture and development capital companies export and import financing companies financial vehicle corporations, created to be holders of securitized assets financial intermediaries which receive deposits or close substitutes for deposits from MFI ´s

Other Financial Intermediaries COVERAGE OF OTHER FINANCIAL INTERMEDIARIES Financial Leasing Companies31 Factoring Companies74 Finance Companies12 Mutual Funds685 TOTAL802 Source : BRSA, CMB

Other Financial Intermediaries Data Sources for S.123: Unified Chart of Accounts of Financial Leasing, Factoring and Finance Companies compiled by BRSA Capital Market Board data set for Investment Funds Data on holder sectors of investment funds compiled by Central Registry Agency

Other Financial Intermediaries Thousand TRYFinancial corporations 2012Total Monetary financial institutions Central Bank Other monetary financial institutions Other financial intermediaries Financial auxiliaries Insurance corporations and pension funds Stocks of financial instruments S.12S.121+S.122S.121S.122S.123S.124S.125 Financial assets Monetary gold and SDRs Monetary gold Special drawing rights Currency and deposits Currency Transferable deposits Other deposits Securities other than shares Securities other than shares, excluding financial derivatives Financial derivatives Loans Shares and other equity Shares and other equity, excluding mutual funds shares Mutual funds sharesn.a Insurance technical reserves Other accounts receivable

Other Financial Intermediaries Thousand TRYFinancial corporations 2012Total Monetary financial institutions Central Bank Other monetary financial institutions Other financial intermediaries Financial auxiliaries Insurance corporations and pension funds Stocks of financial instruments S.12S.121+S.122S.121S.122S.123S.124S.125 Financial Liabilities Currency and deposits Currency Transferable deposits Other deposits Securities other than shares Securities other than shares, excluding financial derivatives Financial derivatives n.a n.a Loans Shares and other equity Shares and other equity, excluding mutual funds shares Mutual funds sharesn.a n.a0 Insurance technical reserves Other accounts payable

Financial Auxiliaries Financial Auxiliaries (S.124) in ESA 95: ‘ ….All financial corporations which are principally engaged in auxiliary financial activities, that is to say activities closely related to financial intermediation but which are not financial intermediation themselves.’ (paragraph 2.57)

Financial Auxiliaries Institutional Units in S.124: insurance brokers, insurance and pension consultants, etc loan brokers, security brokers, investment advisers, etc. corporations that manage the issue of securities corporations whose principal function is to guarantee, by indorsement, bills and similar instruments corporations which arrange derivative instruments corporations providing infrastructure for financial markets central supervisory authorities managers of pension funds, mutual funds, etc. corporations providing stock exchange, insurance exchange

Financial Auxiliaries COVERAGE OF FINANCIAL AUXILIARIES Savings Deposit Insurance Fund1 Capital Market Dealer Companies97 TOTAL 98 Source : SDIF, CMDC Association

Financial Auxiliaries Thousand TRYFinancial corporations 2012Total Monetary financial institutions Central Bank Other monetary financial institutions Other financial intermediaries Financial auxiliaries Insurance corporations and pension funds Stocks of financial instruments S.12S.121+S.122S.121S.122S.123S.124S.125 Financial assets Monetary gold and SDRs Monetary gold Special drawing rights Currency and deposits Currency Transferable deposits Other deposits Securities other than shares Securities other than shares, excluding financial derivatives Financial derivatives Loans Shares and other equity Shares and other equity, excluding mutual funds shares Mutual funds sharesn.a Insurance technical reserves Other accounts receivable

Financial Auxiliaries Thousand TRYFinancial corporations 2012Total Monetary financial institutions Central Bank Other monetary financial institutions Other financial intermediaries Financial auxiliaries Insurance corporations and pension funds Stocks of financial instruments S.12S.121+S.122S.121S.122S.123S.124S.125 Financial Liabilities Currency and deposits Currency Transferable deposits Other deposits Securities other than shares Securities other than shares, excluding financial derivatives Financial derivatives n.a n.a Loans Shares and other equity Shares and other equity, excluding mutual funds shares Mutual funds sharesn.a n.a0 Insurance technical reserves Other accounts payable

Financial Auxiliaries Data Sources for S.124: Unified Financial Reporting System of Capital Market Dealer Companies compiled from Capital Market Dealer’s Association Detailed balance sheet items of Savings Deposit Insurance Fund

Insurance Corp. and Pension Funds Insurance Corporations and Pension Funds (S.125) in ESA 95: ‘ ….All financial corporations which are principally engaged in financial intermediation as the consequence of the pooling of risks.’ (paragraph 2.60)

Insurance Corp. and Pension Funds Institutional Units in S.125: insurance corporations reinsurance corporations (autonomous) pension funds

Insurance Corp. and Pension Funds Data Sources for S.125: Financial reports of Insurance Companies and Pension Funds compiled by Treasury COVERAGE OF INSURANCE COMPANIES AND PENSION FUNDS Insurance Companies41 Reinsurance Companies1 Pension Funds17 TOTAL59 Source : Undersecratariat of Treasury

Insurance Corp. and Pension Funds Thousand TRYFinancial corporations 2012Total Monetary financial institutions Central Bank Other monetary financial institutions Other financial intermediaries Financial auxiliaries Insurance corporations and pension funds Stocks of financial instruments S.12S.121+S.122S.121S.122S.123S.124S.125 Financial assets Monetary gold and SDRs Monetary gold Special drawing rights Currency and deposits Currency Transferable deposits Other deposits Securities other than shares Securities other than shares, excluding financial derivatives Financial derivatives Loans Shares and other equity Shares and other equity, excluding mutual funds shares Mutual funds sharesn.a Insurance technical reserves Other accounts receivable

Insurance Corp. and Pension Funds Thousand TRYFinancial corporations 2012Total Monetary financial institutions Central Bank Other monetary financial institutions Other financial intermediaries Financial auxiliaries Insurance corporations and pension funds Stocks of financial instruments S.12S.121+S.122S.121S.122S.123S.124S.125 Financial Liabilities Currency and deposits Currency Transferable deposits Other deposits Securities other than shares Securities other than shares, excluding financial derivatives Financial derivatives n.a n.a Loans Shares and other equity Shares and other equity, excluding mutual funds shares Mutual funds sharesn.a n.a0 Insurance technical reserves Other accounts payable

CBT’s Experience: Financial Assets of Non-Bank Financial Sector

CBT’s Experience: Financial Liabilities of Non-Bank Financial Sector

CBT’s Experience FINANCIAL SECTOR RATIOS IN PERCENT OF GDP Total Assets in Millions of TRY as of 2012 In Percentage of GDP Monetary Financial Intitutions ,9% Other Financial Intermediaries ,2% Financial Auxiliaries ,8% Insurance Companies and Pension Funds ,2% Source: CBT, Turkstat

CBT’s Experience Asset Composition of Non-Bank Financial Institutions

CBT’s Experience Liability Composition of Non-Bank Financial Institutions

CBT’s Experience Periodic Reports on Non-Bank Financial Sector OECD Institutional Investors’ Survey Financial Accounts (OECD, Eurostat, CBT web site) Statistics on Non-Bank Financial Sector (CBT web site)

Future Work Strengthening Coverage of OFI Pension Mutual Funds Venture Capital Companies Asset Leasing Companies Other Financial Corporations Survey Aggregating financial assets and liabilities of non-bank financial corporations SNA and ESA Revisions Disaggregation of Non-MMF Investment Funds from OFIs Disaggregation of Insurance Companies and Pension Funds

PLEASE CONTACT FOR FURTHER INFORMATION: AYCAN ÖZEK PHONE: CENTRAL BANK OF TURKEY STATISTICS DEPARTMENT MONETARY AND FINANCIAL STATISTICS DIVISION