1. Consolidation in the French financial accounts
Banque de France
Dominique Durant
Consolidation in the French financial accounts
OECD Working Party on Financial Statistics
6-7 October 2003

2. Implementation in the French financial accounts
Outlines
France follows as far as possible the ESA95 regulation and Eurostat’s recommendations
Implementation in the French financial accounts
General remarks
Consolidation by operation
Consolidation by sector and sub-sector
Results of the consolidation in 2001 (semi-final)
Asset side
Liability side
Foreseen improvements
Conclusion

3. 1. France follows as far as possible the ESA95 regulation and Eurostat’s recommendations
As a matter of principle, flows and stocks between constituent units of sectors and sub-sectors are not consolidated.
For reason of comparability, non consolidated data should be based on a complete picture of all financial transactions, assets and liabilities.
A definition of consolidation (art. 1.58).
Consolidation rules apply at the sector and sub-sector level.

4. 2. Consolidation in the French financial accounts a. General remarks
Consolidated accounts are available :
for stocks, transactions, revaluations and other changes in volume.
only in a semi-final and final version, not yet in a provisional version.
at sector level (S11, S12, S13, S14-15), sub-sector level (S121, S122, S123, S124, S125, S1311, S1313, S1314, S14A, S14B, S15) and some national subdivisions of sub-sectors.
The sector’s consolidated accounts do not equal the sum of the corresponding consolidated sub-sector’s accounts.
Consolidation has impact, neither on the “Rest of the world” nor on net financial worth.

5. 2. Consolidation in the French financial accounts b
2. Consolidation in the French financial accounts b. Consolidation by operation
A full consolidation is highly demanding concerning the information on counterpart sector/sub-sector according to ESA95 classification.
So far, long-term securities are not consolidated, because the information on holders of securities issued is not sufficient.
There is no room for consolidation, when the operation involves “by nature” two different sectors.
For all other operations, the information on counterpart is either collected, or estimated and included in the financial account database.

6. 2. Consolidation in the French financial accounts c
2. Consolidation in the French financial accounts c. Consolidation by sector and sub-sector
The accuracy of consolidated data depends on the quality of the information available for the individual units included in the sector/sub-sector:
the quality is high (individual balance sheets with information on counterpart sectors) for general government and financial institutions excluding financial insurance companies and financial auxiliaries
the quality is medium (aggregated balance sheets without information on counterpart sectors) for insurance corporations and non-financial corporations
the quality is low (counterpart information only) for financial auxiliaries, households and non profit institutions serving households. For these sectors/sub-sectors, no consolidation is made.

7. 3. Results of consolidation in 2001 (semi-final) a. Asset side
INTRA-SECTOR OPERATIONS IN % OF NON CONSOLIDATED ASSETS %
SECTORS
S100000
S110000
S120000
S130000
S141500
S200000
TRANSACTIONS
F10000
MONETARY GOLD AND SDRs
F20000
CURRENCY AND DEPOSITS 69 60
F30000
SECURITIES OTHER THAN SHARES AND DERIVATIVES 16 19
F40000
LOANS 54 5 39
F50000
SHARES AND OTHER EQUITY
F60000
INSURANCE TECHNICAL RESERVES
100
F70000
OTHER ACCOUNTS RECEIVABLE OR PAYABLE 61 35 1
F90000
NET WORTH
F98000
TOTAL 20 24 23
Source : Banque de France
Updated 10 September 2003
DESM SESOF Tél. : nn nn Fax :
S : RESIDENT TOTAL ECONOMY
S : GENERAL GOVERNMENT
S : NON-FINANCIAL CORPORATIONS
S : HOUSEHOLDS AND NPISH
S : FINANCIAL INSTITUTIONS
S : REST OF THE WORLD

8. 3. Results of consolidation in 2001 (semi-final) b. Liability side
INTRA-SECTOR OPERATIONS IN % OF NON CONSOLIDATED LIABILITIES %
SECTORS
S100000
S110000
S120000
S130000
S141500
S200000
TRANSACTIONS
F10000
MONETARY GOLD AND SDRs
F20000
CURRENCY AND DEPOSITS 39 55
F30000
SECURITIES OTHER THAN SHARES AND DERIVATIVES 32 1
F40000
LOANS 24 15
F50000
SHARES AND OTHER EQUITY
F60000
INSURANCE TECHNICAL RESERVES
F70000
OTHER ACCOUNTS RECEIVABLE OR PAYABLE 62 63 46
F90000
NET WORTH
F98000
TOTAL 20 23
Source : Banque de France
Updated 10 September 2003
DESM SESOF Tél. : nn nn Fax :
S : RESIDENT TOTAL ECONOMY
S : GENERAL GOVERNMENT
S : NON-FINANCIAL CORPORATIONS
S : HOUSEHOLDS AND NPISH
S : FINANCIAL INSTITUTIONS
S : REST OF THE WORLD

9. 4. Foreseen improvements
Consolidated provisional accounts will be the result of the future computerised production of full quarterly financial accounts.
To consolidate long-term securities, the reshaping of the survey conducted on resident custodians is foreseen in order to complete the information on holders of securities.

10. 5. Conclusion
The data used for consolidation, namely the information on counterpart sector, may enhance the quality of the financial accounts.
However, the costs that may be incurred in the collection of such information should be compared with the potential benefits.