Abstract

11.1. The financial account records transactions that involve financial assets and liabilities and that take place between institutional units and between institutional units and the rest of the world.1 The left side of the account (table 11.1. Account III.2) records acquisitions less disposals of financial assets, while the right side records incurrence of liabilities less their repayment. Net incurrence of liabilities less net acquisition of financial assets is equal in value, with the opposite sign, to net lending/borrowing, the balancing item in the capital account. In the SNA, financial assets are classified under seven major categories (the full classification is presented in table 11.2):Table 11.1.Account III.2: Financial accountChanges in assetsChanges in liabilities and net worthS.1S.15S.14S.13S.12S.11S.11S.12S.13S.14S.15S.1Correspondingentries of theCorrespondingentries of theTotalGoodsandserviceaccountRestof theworldaccountTotaleconomyNPISHsHouseholdsGeneralgovernmentFinancialcorporationsNon-financialcorporationsTransactions andbalancing itemsNon-financialcorporationsFinancialcorporationsGeneralgovernmentHouseholdsNPISHsTotaleconomyRestof theworldaccountGoodsandserviceaccountTotalB.9Net lending (+)/net borrowing (-)−695−50148438−380691506413218112023771FNet acquisition of financial assets/FNet incurrence of liabilities1402321703328603886911−1−1F.1Monetary gold and SDRs13011119126871517F.2Currency and deposits11302132−2130373342102155F.21Currency353523764262741410F.22Transferable deposits63265−1642962331712F.29Other deposits3232−32914351381229265318F.3Securities other than shares65364123201435625422211415F.31Short-term23415515568738410715493F.32Long-term419497215872541024454516727F.4Loans2719428242173725486383316316F.41Short-term16321117761086168716124410411F.42Long-term5562177141271684624433632F.5Shares and other equity22613443346363636F.6Insurance technical reserves363636333333F.61Net equity of households on life insurance reserves and in pension funds333333222222F.611Net equity of households in life insurance reserves222222111111F.612Net equity of households in pension funds111111333F.62Prepayment of premiums and reserves against outstanding claims33382216184067F.7Other accounts receivable/payable2371055230823618181116F.71Trade credits and advances8641818364634382951F.79Other accounts receivable/payable except trade credits and advances29413412461The following memorandum items related to the elements of the category F.2 “Currency and deposits”:m11denominated in national currencym12denominated in foreign currencym21liability of resident institutionsm22liability of rest of the world.2Memorandum item: F.m. Direct foreign investment.Table 11.2.Classification of transactions in financial assets and liabilitiesF.1.Monetary gold and SDRsF.2.Currency and depositsF.21CurrencyF.22Transferable depositsF.29Other depositsF.3.Securities other than sharesF.31Short-termF.32Long-termF.4.LoansF.41Short-termF.42Long-termF.5.Shares and other equityF.6.Insurance technical reservesF.61Net equity of households in life insurance reserves and in pension fundsF.611Net equity of households in life insurance reservesF.612Net equity of households in pension fundsF.62Prepayments of premiums and reserves against outstanding claimsF.7.Other accounts receivable/payableF.71Trade credit and advancesF.79OtherMemorandum item:Direct foreign investmentEquityLoansOtherNotes—The recommended breakdown of items F.2, F.3, and F.4 into (a), (b), or (c) is optional. F.3 may also optionally be subdivided between securities other than shares, excluding financial derivatives, and financial derivatives.This provides the classification for both transactions in financial assets and liabilities and holdings of financial assets and liabilities in balance sheets.