1. The 12th OECD-NBS Workshop on National Accounts Research on Real Value-added Measure of the Finance Industry in China (LU Feng, NBS) Comments on paper by Roger Jullion, Statistics Canada October 2008

2. 10/11/2015 Statistics Canada Statistique Canada 2 Measuring output in the Finance Industry  Evolution of international standards  NBS estimates of nominal output  NBS estimates of real output  Method used at Statistics Canada  Suggestions for further development

3. 10/11/2015 Statistics Canada Statistique Canada 3 Banking industry  Measuring nominal output and value added at NBS Value added as sum of incomes from production Output composed of net interest receivable + net inter-bank transactions receivable + other bank output Intermediate inputs derived residually

4. 10/11/2015 Statistics Canada Statistique Canada 4 Banking industry  Real output estimates Each of the three output components deflated with loan rates, deposit rates, offered rates and CPI There may be variations in the loan and deposit terms that could affect the deflator NBS could consider weighting the various terms

5. 10/11/2015 Statistics Canada Statistique Canada 5 Banking industry  Method used at Statistics Canada FISIM estimated as interest receivable less interest payable Reference rate is chosen as the mid-point between the deposit rate and the lending rate Allocation of FISIM between depositors and lenders is based on loan and deposit levels and the reference rate Allocation over sectors is based on asset and liability levels from the balance sheet accounts Real output is based on the growth of assets and liabilities deflated with the overall CPI

6. 10/11/2015 Statistics Canada Statistique Canada 6 Banking industry  Suggestions for further development Research the reference rate approach Examine the volume of assets and liabilities approach to project real banking output Look into whether transactions data are available for the various banking outputs  e.g. number of ATM transactions, number of loans, etc.

7. 10/11/2015 Statistics Canada Statistique Canada 7 Insurance industry  Measuring nominal output at NBS Premiums less claims Premium supplements???  SNA 2008…use of expected claims Catastrophic events create volatility in claims and therefore volatility in insurance output Use of expected claims results in smoother series which is more reasonable

8. 10/11/2015 Statistics Canada Statistique Canada 8 Insurance industry  Real output estimates NBS using CPI and IPI as a deflator NBS could consider using deflated premiums  Methods used at Statistics Canada Premiums earned + premium supplements – claims due Real output based on deflated premiums for non-life insurance Number of persons insured and deflated assets are used as a volume projector for life insurance

9. 10/11/2015 Statistics Canada Statistique Canada 9 Insurance industry  Suggestions for further development Are premium supplements included in nominal output? Consider using deflated premiums Examine the expected claims approach as suggested by SNA 2008

10. 10/11/2015 Statistics Canada Statistique Canada 10 Securities industry  Measuring nominal output at NBS  Real output estimates  Methods used at Statistics Canada  Suggestions for further development