1. ESTAT/A/1 05/12/2015 14:46 Slide: 1 European Commission - Eurostat Leonidas Akritidis Unit C1: National Accounts Calculating sector allocation of FISIM Results from the questionnaires

2. European Commission - Eurostat ESTAT/ 05/12/2015 14:46 Slide: 2 Overview Introduction Description of the results Data availability Calculation of internal and external reference rates Sector allocation to user sector, export and import Breakdown of HH sector FISIM allocation among industries FISIM at constant prices Conclusions

3. European Commission - Eurostat ESTAT/ 05/12/2015 14:46 Slide: 3 The questionnaire After a pilot test, MSs reached agreement on the methods to measure and allocate FISIM, and these were legislated for in Commission Regulation 1889/2002 In May 2004, Eurostat sent a questionnaire to each of the 25 MSs to check on Methodologies used to calculate sector allocation of FISIM Degree of readiness to implement it from 1 January 2005 - as required by the Regulation The questionnaire asked for descriptions of sources and methods used in calculating sector allocation of FISIM - by all elements listed in the FISIM regulation

4. European Commission - Eurostat ESTAT/ 05/12/2015 14:46 Slide: 4 For most MSs, S.122 data was more reliable than S.123 data Data on S.123 were not available in BE FI PL, and whereas in LU interest data were adjusted, for example: BE used Interbank data on loans and deposits only between S.122 FI assumed the interest flows on S.123 to be the same as of S.122 LU calculated data on Interbank interests by applying interest rates on stocks of loans and deposits between S.122 and S.123 - adjusting them by data from the profit & loss accounts of S.122 Data availability - Interbank

5. European Commission - Eurostat ESTAT/ 05/12/2015 14:46 Slide: 5 S.122 In most MSs, data on stocks of loans and deposits came from direct sources - with breakdowns onto user sector (S.11 S.124 S.125 S.13 S.14 S.15) and exports (S.2) S.123 In most MSs, data sources of S.123 were less reliable than S.122 The importance of this sector in producing FISIM was minor Some countries assumed that S.123 does not produce FISIM Data availability - Stocks

6. European Commission - Eurostat ESTAT/ 05/12/2015 14:46 Slide: 6 Information on interest flows was less detailed than on stocks. Some MSs had direct sources of interest flows of loans and deposits by required institutional units CZ and PL In some MSs, the breakdown of interest flows among sector was calculated, by applying interest rates obtained from various studies BE and LU In ES and HU, data were available from direct source - but estimates were needed in some cases. Data availability - Interest

7. European Commission - Eurostat ESTAT/ 05/12/2015 14:46 Slide: 7 It was more difficult to get data sources for calculating import of FISIM than for calculating export of FISIM This led the MSs to use less reliable estimates in calculating imports, In some MSs, data were available from BoP statistics, but in some MSs the BoP data had to be adjusted or supplemented to derive with the necessary breakdown by institutional units, All MSs said it was not currently possible to make further breakdowns of S.2 into Euro non-Euro extra-EU, However, IT, LT, FR, HU, LU, PT and FI mentioned making necessary arrangements to provide the required breakdown. Data availability - import of FISIM

8. European Commission - Eurostat ESTAT/ 05/12/2015 14:46 Slide: 8 Most of the MSs said they made proper calculation of the reference rates in accord with the regulation The exceptions were: CZ CY AT - calculations in progress. SI - changes in the accounting standards All MSs said it was not possible to make further breakdowns of External Reference Rate onto Euro non-Euros extra EU Reference rates

9. European Commission - Eurostat ESTAT/ 05/12/2015 14:46 Slide: 9 User sectors Most MSs provided calculations of sector allocation of FISIM Export and import Most MSs provided calculations of export and import of FISIM - but some had data availability problems - mainly on import Sector allocation of FISIM

10. European Commission - Eurostat ESTAT/ 05/12/2015 14:46 Slide: 10 Necessary breakdown of the stocks and interest of HH sector Dwelling loans - intermediate consumption Loans and deposits to households as owners of unincorporated enterprises - intermediate consumption Other loans and deposits to households - final consumption Some MSs had problems with recording Dwellings Loans Household sector Intermediate & final consumption

11. European Commission - Eurostat ESTAT/ 05/12/2015 14:46 Slide: 11 Eurostat proposed two methods of allocating FISIM among industries Method I - based on stocks of loans and deposits for each industry Method II - based on the output for each industry Only 18 MSs gave information on which method they used Method I was used by 3 MSs - CZ FI SE - information on stock and interests flows by industry is broadly available Combination of Methods I and II was used by 5 MSs – BE DK DE EE AT - data for some industries is not available Method II was used by 6 MSs – IT LT HU NL PL PT 3 MSs - ES UK LU used Method II, but based on GVA for each industry 1 MS - FR used combination of Method I and interests of Loans and deposits Allocation of FISIM among industries

12. European Commission - Eurostat ESTAT/ 05/12/2015 14:46 Slide: 12 FISIM calculations at constant prices 12 MSs calculated FISIM at constant prices BE DK DE ES FR IT HU NL PT FI SE UK In 3 MSs calculations are in progress CY LU AT Use of suitable price deflator varied between MSs – examples are BE PT FI SE – domestic final demand deflator UK – implied GDP deflator AT – CPI services deflator FISIM at constant prices

13. European Commission - Eurostat ESTAT/ 05/12/2015 14:46 Slide: 13 Conclusions Calculating sector allocation of FISIM requires further improvement of the statistical source data in order to enable: Direct measure of interest flows with breakdown by institutional units Better measures of exports and imports of FISIM. Some countries had difficulties getting accurate information on breakdown of Households intermediate and final consumption - mainly difficulties with data on Households as owner of dwellings