1. Sector Accounts: Financial Corporations
Leslie Nootenboom

2. Contents Sector accounts of financial corporations
Subsectors: population, sources…
ESA 2010
Practical experience
FISIM

3. Sectors S.11 Non-financial corporations S.12 Financial corporations
S.13 General government
S.14 Households
S.15 Non-profit institutions serving households
S.2 Rest of the world

4. Subsectors S.12 Financial corporations
S.121 Central bank
S.122 Deposit-taking corporations except the central bank
S.123 Money market funds (MMFs)
S.124 Non-MMF investment funds
S.125 Other financial intermediaries
S.126 Financial auxiliaries
S.127 Captive financial institutions and money lenders
S.128 Insurance corporations (IC)
S.129 Pension funds (PF)

5. Sequence of accounts

6. Financial account
Financial transactions (F) are transactions in financial assets (AF) and liabilities between resident institutional units, and between them and non-resident institutional units.(ESA par. 5.01)

7. S.121 Central bank Population: DNB (Central Bank of the Netherlands)
Sources: DNB
Special Drawing Rights (SDRs)

8. S.122 Deposit-taking corporations
Population: 5 banks have 85% of the total balance of banks
Sources:
Social-economic reports (SE)
Exchange rates
Stock market indices
Intrinsic value of credit institutions
Financial derivatives

9. S.123 Money Market Funds (MMFs)
In ESA95: S.122
Total balance: less than 2 billion euros

10. S.124 Non-MMF Investment funds Population, sources
Population: Non-MMF investment funds receive from institutional units, investment fund shares or units which are not close substitutes for deposits, and on their own account, to make investments primarily in financial assets other than short-term financial assets and in non-financial assets (usually real estate) (ESA ).
Before 2008Q4: only investment funds under supervision
Since 2008Q4: all investment funds
Sources:
Direct Report (DRA)
T + 40 version 1, one week later version 2
Stock market indices

11. S.124 Non-MMF Investment funds Correction for continuation (1)

12. S.124 Non-MMF Investment funds Correction for continuation (2)

13. S.124 Non-MMF Investment funds Correction for plausibility
Production and intermediate consumption have about the same development
Received interest and dividends = paid interest and dividends
Received interest plausible with market interest rates and portfolio
Revaluations plausible with stock market indices
OB + FT + OM = CB
OB t = CB t-1

14. S.125 Other financial intermediaries Population, sources
Non-MFI subsidiaries of MFIs
Financial lease companies
Special Purpose Vehicles (SPVs)
All other financial intermediaries (OFIs)
Sources:
SPVs: quarterly and yearly.
OFIs: annual reports
Non-MFIs and lease: DNB (yearly, only stocks)

15. S.125 Other financial intermediaries SPVs

16. S.126 Financial auxiliaries (1)
Population:
Options and stock markets
Stockbrokers, investment consultants
Trust offices
Stock specialists, market makers
Mortgage and credit mediation, exchange offices, bank and saving agencies
Insurance markets
Insurance intermediaries
Actuarial and pension consultancies
Guarantee funds
Damage assessment, fix rates for insurances
ESA 2010: Head offices of financial corporations
Sources:
Quarterly and annual reports
Market indicators

17. S.126 Financial auxiliaries (2)
Who determines the population?
What to do when you don’t have sources?

18. S.127 Special Purpose Entities (SPEs)
Great share in OFIs
Distortion of GDP!?

19. S.128/S.129 Insurance corporations and pension funds (1)
Population:
Before 2008: only pension funds under supervision
Since 2008: all pension funds
Sources:
Direct Report (DRA)

20. S.128/S.129 Insurance corporations and pension funds (2)
Importance of pension funds relative to the size of the economy, OECD countries, 2010 (OECD)

21. S.128/S.129 Insurance corporations and pension funds (3)
Look through principle:
Portfolio (shares, securities)
F.52 Mutual funds shares
Interesting discussions about
Ageing problem
Economic crisis

22. ESA 2010: subsectoring of S.12

23. ESA 2010: special purpose entities Balance sheet 2010 after revision

24. Corrections for a consistent matrix

25. Quarterly and yearly figures
Quarterly figures (regular, adjusted)
Yearly figures (provisional, definitive)
Rebase: quarterly figures fit with yearly figures
(yearly figure = sum of quarterly figures)

26. FISIM (1) Financial Intermediation Services Indirectly Measured
Calculated for types (n) of loans (A) and deposits (D)
Interest spread (p) based on a reference rate (rR)
Average balance (q) and period (t)

27. FISIM (2)

28. FISIM (3) FISIM in volume terms
Deflated stocks method uses a general deflater; Consumer Price Index (CPI)
Output indicator method uses weights (w) and number of payment transactions (T) per type (i)