1. Item19b: F inancial I ntermediation S ervices I ndirectly M easured
ESTP course: ESA 2010 National Accounts
Luxembourg, 30 May - 3 June Eurostat, BECH A3/45

2. Financial Intermediation Services Indirectly Measured
What is FISIM and how is it measured
Treatment of FISIM output
Concept of FISIM allocation
By sectors
By industries
In the non-financial account, including adj. of interest
Calculation and allocation of FISIM in practice

3. 1. What is FISIM and how is it measured
The measurement of output of a market producer is based on price or fee for which its service is sold.
In case of financial intermediaries (FIs) they explicitly charge commissions and fees to their customers. The measurement possesses no special problem in National Accounts.
But FIs are also able to provide services for which they charge implicitly via interest margin. They pay lower rates of interest (interest payable) to those that lend them money and charge higher rates of interest (interest receivable) to those who borrow from them. In this situation, the National Accounts must use an indirect measure, called F I S I M .
Interest receivable €
Interest
Margin
Interest payable
time 3 t

4. 2. Treatment of FISIM output
Two treatments of FISIM:
ESA95: FISIM output is not allocated but is treated as absorbed by the intermediate consumption of a nominal sector and, therefore, the GDP is not affected.
ESA2014 (chapter 14): FISIM output is allocated among the various users of the services, namely intermediate consumption of enterprises, final consumption of households, and exports. In this approach, FISIM allocated to final consumption and net trade increase the level of GDP.

5. 3. Concept of FISIM allocation
Reference rate = 2%
Stock on Loan of 200 €
Interest receivable by FI of 6.5 % So
FISIM on Loan = 200 € x (6. 5% - 2 %) = 9 €
Stock of Deposit of 200 €
Interest payable by FI of 1.5 %
FISIM on Deposit= 200 € x (2% - 1.5%) = 1 €
Total FISIM output = 10 €
Rate on loan %
Ref rate
Margin
loan
Rate on dep.
Margin
deposit
time t

6. FISIM allocation: by sectors

7. FISIM allocation: by sectors

8. FISIM allocation: by sectors

9. FISIM allocation: by sectors

10. FISIM allocation: by industries
FISIM allocated
Financial Int.
Output 48
Industry
Int.Cons. 4
GVA 44
Non-market 9
producers
Other 23
-23
Nominal
Total 57 36 21

11. FISIM allocation: in the Sector Accounts, household sector%
time
Rate on loan t
Margin
deposit
loan

12. 4. Calculation and allocation of FISIM in practice
To calculate FISIM output and allocate it into user sectors, we need:
Matrix of stocks of deposits / loans of FIs by sectors
Matrix of interest paid / received by FIs to/from sectors

13. Example 13

14. Example
(in €)
(in €)
rr= 30€/1000€
= 3%
(in %)
FISIM

15. Example
(in €)
(in €)
rL= 150€/3000€
= 5%
(in %)
FISIM 15

16. Example FISIM D to S.11= ( - rr) * Stock D= 1 % * 600 € = 6 €
(in €)
(in €)
(in %)
FISIM D to S.11=
( rr) * Stock D=
1 % * 600 € = 6 €
FISIM L to S.11= ( ) * Stock L= 2 % * 3000 € = 60 €
FISIM 16

17. Example
Solution to the example above: FISIML = 60 € to non-financial enterprise (S11) FISIMD = 24 € to households (S14) FISIMD = 6 € to non-financial enterprise (S11) Total FISIM output = 90 €