1. Treatment of Cash Collateral

2. Overview
Query from De Nederlandsche Bank to BOPCOM Differences in the methodological treatment of cash collateral (repayable margin) in the BPM6 and 2008 SNA on one hand, and the ESA 2010 on the other. De Nederlandsche Bank and Statistics Netherlands came to the conclusion that the treatment in ESA 2010 seems to be most in line with the characteristics of cash collateral in practice.

3. Consistent Treatment in BPM6 and 2008 SNA
BPM6: Repayable margin payments in cash are classified as deposits (if the debtor’s liabilities are included in broad money) or in other accounts receivable/payable.
2008 SNA: Repayable margin payments in cash are transactions in deposits, not transactions in a financial derivative. The depositor has a claim on the exchange or other institution holding the deposit. Some compilers may prefer to classify these margins within other accounts receivable or payable in order to reserve the term deposits for monetary aggregates.
ESA 2010: Repayable margin payments for which the debtor’s liabilities are not included in broad money…should be recorded as a loan (unless the counterpart is a monetary financial institution).

4. Other Statistical Manuals
The treatment in BPM6 and SNA2008 is also consistent with that in the Monetary and Financial Statistics Manual and Compilation Guide (MFSMCG) and in the Government Finance Statistics Manual (GFSM2014).
Monetary and financial statistics stress that these collateral guarantees should not be included in credit/lending aggregates.
“Other accounts receivable/payable” do not only record balance sheet items that result from timing differences (as the note suggests), but also include miscellaneous asset items (see paragraph of the MFSMCG).

5. BOPCOM Decision BOPCOM written consultation Agreed:
The proposed change goes beyond a simple clarification and would require a change in the text of the Manuals.
The issue will be placed on the BPM research agenda to be considered during the next BPM update.
Requested that the AEG do the same.

6. Question for the AEG
Do members agree the issue be placed on the SNA Research Agenda.