Chapter

VII. The Framework for Monetary Statistics

Author(s):
International Monetary Fund. Statistics Dept.
Published Date:
September 2000
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INTRODUCTION

362. This chapter describes the framework for the compilation and presentation of monetary statistics in accordance with the methodology recommended in this manual. The monetary statistics cover stock and flow data on the assets and liabilities of the financial corporations sector and its subsectors. The broader category of financial statistics, described in Chapter 8, covers all financial stocks and flows in the economy.

363. The monetary statistics include data for all institutional units in the financial corporations sector, which, as described in Chapter 3, is subdivided into five subsectors in the 1993 SNA. For compiling the monetary statistics, the financial corporations sector is divided into the central bank subsector, the other depository corporations subsector, and the other financial corporations subsector, the last of which encompasses the 1993 SNA subsectors for insurance corporations and pension funds, other financial intermediaries, and financial auxiliaries. Taken together, the central bank and other depository corporations constitute the depository corporations subsector.

364. The framework for the monetary statistics recommended in this manual embodies two levels of data compilation and presentation. At the first level, stock and flow data reported by individual institutional units are aggregated into sectoral balance sheets, which contain comprehensive data for the individual financial corporations subsectors—that is, the central bank, other depository corporations, and other financial corporations. At the second level, the data in the sectoral balance sheets are consolidated into surveys. The data in the sectoral balance sheets are also used in the compilation of the financial statistics, as described in Chapter 8.

365. Surveys are compiled for financial corporations subsectors and for the entire financial corporations sector. The DCS and its component surveys—the CBS and the ODCS— are the major focus of the monetary statistics and constitute a core set of data for macroeconomic analysis. The DCS contains stock and flow data on those depository corporations’ liabilities that are components of broad money, as nationally defined, and data on depository corporations’ assets that are claims on (i.e., credit to) other sectors of the economy. The DCS also contains data on depository corporations’ claims on and liabilities to nonresidents. The CBS and ODCS show the data that are consolidated to obtain the DCS and other data that are used in monetary and credit analysis at the separate levels of the central bank and other depository corporations. In particular, the CBS shows the components of the monetary base, described in Chapter 6.

366. The monetary statistics framework also includes the FCS, which extends the coverage beyond the depository corporations covered in the DCS. In the FCS, the stock and flow data from the DCS are consolidated with the data from the OFCS, which contains stock and flow data consolidated for insurance corporations and pension funds, other financial intermediaries, and financial auxiliaries. The FCS thereby provides the stock and flow data for analyzing claims on and liabilities to all other sectors of the economy and nonresidents, at the level of the entire financial corporations sector. In particular, the FCS shows a comprehensive measure of credit extended by financial corporations.

OVERVIEW OF THE FRAMEWORK

367. The purpose of the sectoral balance sheets is to provide a framework for the collection and presentation of data in a format that facilitates (1) the compilation of surveys,41 as described in this chapter and (2) the presentation of flow of funds for the financial corporations sector, as described in Chapter 8. The data for a sectoral balance sheet are obtained from the individual institutional units within a financial corporations subsector and are classified into standard components, in accordance with the sectorization, instrument classification, and accounting principles in this manual. In addition, sectoral balance sheets are directly useful for analyses requiring subsector data that are more highly disaggregated than the asset and liability categories shown in the corresponding financial subsector surveys.

368. The DCS covers the accounts of the depository corporations and is a consolidation of the CBS and the ODCS. The FCS is a consolidation of the DCS and the OFCS.

369. For many countries, the DCS will constitute the principal set of monetary statistics for macroeconomic policy. The DCS is a consolidated statement of stocks and flows for the accounts of all financial sector corporations that incur liabilities included in the national definition of broad money. The framework of the DCS is designed to facilitate analysis of broad money and its components, credit aggregates and their components, and depository corporations’ foreign assets and liabilities and other assets and liabilities.

370. By maintaining the balance-sheet identity in the DCS, the broad money liabilities of depository corporations are linked to their claims on (i.e., credit to) nonresidents and sectors of the domestic economy, and to their other assets and liabilities. This balance sheet identity is reflected in the stock and flow data in the DCS.

371. No single definition of broad money is prescribed in this manual, in recognition that national definitions of broad money vary considerably across countries. For each country, the national definition of broad money is used in determining the institutional units covered by the DCS. All institutional units that (1) are included in the financial corporations sector and (2) issue liabilities included in the national definition of broad money are classified as depository corporations and are therefore included in the DCS.42

372. The DCS is structured to facilitate macroeconomic analysis that makes use of the linkages between the monetary statistics and other macroeconomic statistics. The balance sheet presentation of the DCS links depository corporations’ broad money liabilities to their foreign assets and liabilities and to their claims on and liabilities to central government, thereby linking the monetary statistics to the balance of payments and government finance statistics, respectively.

373. The DCS can be rearranged to show that broad-money liabilities (BML) equal the sum of net foreign assets (NFA), domestic credit (DC), and other items (net) (OIN). That is, the opening or closing stock positions in the DCS can be shown as

DC comprises net claims on central government and claims on other sectors. OIN denotes a residual category for other liabilities less other assets, when other liabilities includes all liabilities not included in broad money.

374. Total flows (closing stocks less opening stocks) for the DCS are shown as

where Δ denotes a total flow (period-to-period change). The flow data in each category in the DCS are decomposed into separate flows for transactions, valuation changes, and OCVA.

375. Changes in broad money liabilities can arise from changes in the foreign assets and foreign liabilities of the depository corporations, as can be seen from the identity that links ΔBML to ΔNFA, shown in the preceding paragraph.

376. The components of ΔDC are shown as

where NCG and CORS denote net claims on central government and claims on other resident sectors, respectively.

377. The components of ΔNCG in the DCS are directly linked to the government finance statistics. Data on the transaction flows for the underlying components of net claims on central government can be used to analyze the expansionary or contractionary effects on broad money that can arise from financial transactions between the depository corporations and the central government. Growth in net claims on central government—through a rise in depository corporations’ holdings of government securities, direct lending to government, and/or reduction in government deposit holdings—will exert an expansionary influence on the broad-money liabilities of depository corporations.

378. ΔCORS shows the total flows arising from changes in depository corporations’ claims on resident sectors other than the central government. An increase in these claims—a positive ΔCORS— has an expansionary effect on broad money liabilities, whereas a decrease in these claims has a contractionary effect. Data on the sectoral components of ΔCORS can be used to analyze the sources of expansionary or contractionary effects on broad money, arising from growth or decline in depository corporations’ claims on the various sectors of the economy. For more detailed analysis, ΔCORS can be disaggregated into transactions, valuation changes, and OCVA.

SECTORAL BALANCE SHEETS

379. The sectoral balance sheet constitutes the underlying framework for organizing the monetary data that are used to compile surveys of subsectors of the financial corporations sector. The sectoral balance sheet is organized into asset and liability categories that are the same as, or consistent with, the categories of financial assets in the 1993 SNA. The framework of the sectoral balance sheet embodies the “building block” approach of this manual, whereby data are classified by sector and type of financial instrument at disaggregated levels to provide flexibility in the use of the data for a broad range of analyses.

380. Sectoral balance sheet data are obtained from the accounting and, in some cases, administrative records of the institutional units within the financial subsector covered by the sectoral balance sheet. Data for some or all units in a particular subsector may need to be obtained from other sources or may need to be estimated. Data for each unit are classified into standard components in accordance with the sectorization, instrument classification, and accounting rules explained in Chapters 3-5 of this manual. The data for each unit are reported to the compilers of monetary and financial statistics, and the data for all units in the financial subsector are aggregated into a sectoral balance sheet.

381. The sectoral balance sheet contains separate columns for opening (beginning of period) and closing (end of period) stocks, as well as for financial flows arising from transactions, valuation changes, and OCVA during a particular period. Chapter 5 describes these three components of financial flows.

382. Financial assets and liabilities are classified by instrument and by creditor/debtor sector. The classification in the sectoral balance sheets follows that of the Financial Account of the 1993 SNA, except that loans and securities other than shares are not dissagregated by maturity, which is a secondary classification in the 1993 SNA. However, supplementary data disaggregated by maturity may be useful for the monetary statistics in the national context. The sectoral balance sheet also distinguishes between those liabilities that are included in the national definition of broad money and those that are excluded from that definition.

383. The liabilities section of the sectoral balance sheet shows shares and other equity on a book value basis, disaggregated by various components. However, use of the sectoral balance sheet data in compiling flow of funds accounts, as described in Chapter 8, requires that data be available for shares and other equity on a market-price basis, disaggregated by holding sector. The latter data are included as memorandum items to the sectoral balance sheet. (Chapter 5 discusses the valuation of liabilities in the form of shares and other equity.) The sectoral balance sheets disaggregate liabilities in the form of shares and other equity into funds contributed by owners, retained earnings, general and special reserves, SDR allocations (applicable only to the central bank), and valuation adjustment. Funds contributed by owners is the amount of the proceeds from the financial corporation’s sale of shares to equity holders. The category of retained earnings shows all earnings (after-tax profit) from the overall operations of the financial subsector less any amount of earnings that have been allocated to general and special reserves, which is established as a capital cushion to cover operational and financial risks of corporations. Valuation adjustment pertains to adjustments arising from changes in the market values (or fair value equivalents) of assets and liabilities, resulting from changes in market prices of assets and liabilities and from changes in exchange rates used in converting foreign-currency-denominated positions into domestic currency amounts.

384. The sectoral balance sheet includes separate data categories for intrasectoral assets and liabilities—the financial subsector units’ claims on and liabilities to other units within the subsector. Compilation of the corresponding survey involves consolidation of the sectoral balance sheet accounts. The consolidation nets out each unit’s claims on and liabilities to other units within that subsector, resulting in a survey that shows only the financial subsector’s claims on and liabilities to other sectors, including other financial subsectors, and nonresidents.

385. Claims on and liabilities to the individual financial corporations subsectors are presented as separate categories of sectoral balance sheet data for use in compiling the DCS and the FCS in which accounts between subsectors are consolidated.

386. The sectoral balance sheet is denominated in national currency units. All foreign-currency-denominated assets and liabilities are converted to national currency values using market or market-equivalent exchange rates, as Chapter 5 of this manual describes.

387. Table 7.1, at the end of this chapter, shows the format for the sectoral balance sheet for a financial corporations subsector. Some asset and liability categories shown in Table 7.1 do not apply to all subsectors of the financial corporations sector. For example, the central bank is the only financial corporations subsector that can hold monetary gold. Similarly, on the liabilities side, the central bank is almost always the only financial corporations subsector that issues currency.

Table 7.1.Sectoral Balance Sheet for a Financial Corporations Subsector
Assets (By type of claim and debtor)Opening StockTransactionsValuation ChangesOther Changes in VolumeClosing Stock
Monetary gold and SDRs
Monetary gold
SDRs
Currency and deposits
Currency
National 1/
Foreign
Transferable deposits
In national currency
Central bank
Other depository corporations
Other financial corporations 2/
Nonresidents
In foreign currency
Central bank
Other depository corporations
Other financial corporations 2/
Nonresidents
Other deposits
In national currency
Central bank
Other depository corporations
Other financial corporations 2/
Nonresidents
In foreign currency
Central bank
Other depository corporations
Other financial corporations 2/
Nonresidents
Securities other than shares
Central bank
Other depository corporations
Other financial corporations
Central government
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Loans
Central bank
Other depository corporations
Other financial corporations
Central government
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Shares and other equity
Central Bank
Other depository corporations
Other financial corporations
Pubic nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Insurance technical reserves
Other financial corporations
Nonresidents
Financial derivatives
Central bank
Other depository corporations
Other financial corporations
Central government
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Other accounts receivable
Trade credit and advances
Central bank
Other depository corporations
Other financial corporations
Central government
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Other
Resident sectors
Nonresidents
Nonfinancial assets
Total assets
Note: In the table, social security funds are included in central government or state and local government as appropriate. Alternatively, social security funds may be classified as a separate subsector of general government and identified separately in the sectoral balance sheet.

National currency includes that issued by the central bank and central government and, in exceptional cases, by other depository corporations.

These categories would apply, for example, to other financial intermediaries that accept deposits from other depository corporations but do not accept any deposits included in the national definition of broad money. If these financial corporations begin to accept deposits included in the national definition of broad money, they should be reclassified as other depository corporations.

In the sectoral balance sheet, as shown, central government deposits are assumed to be excluded from broad money.

These categories include transferable deposits that are held in other depository corporations that are not operating and are in the process of being liquidated or reorganized.

In exceptional circumstances, some types of loans might be included in the national definition of broad money. If so, loans would need to be disaggregated into separate categories for (1) loans included in broad money and (2) loans excluded from broad money. Similarly, if some types of financial derivatives were included in the national definition of broad money, separate categories would be needed for (1) financial derivatives included in broad money and (2) financial derivatives excluded from broad money.

Pertains only to float arising from those items in the process of collection that (1) are associated with transferable deposits included in broad money and (2) are items for which the central bank has provided the funds to the other depository corporations that sent the items for collection, but have not yet been collected from the other depository corporations on which the items were drawn.

Pertains to either (1) all interest that is overdue for payment or (2) all interest that has been overdue for a specified period (for example, 60 days or longer). The specific rule applied in the national context should be indicated in a footnote,

Comprises the amount of loan loss provisions and all expected loans losses not covered by the loss provisions.

Fair values should be used for shares and other equity that are not traded.

Liabilities (By type of claim and creditor)Opening StockTransactionsValuation ChangesOther Changes in VolumeClosing Stock
Currency in circulation
Deposits included in broad money
Transferable deposits
In national currency
Other financial corporations
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
In foreign currency
Other financial corporations
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Other deposits
In national currency
Other financial corporations
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
In foreign currency
Other financial corporations
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Deposits excluded from broad money
Transferable deposits
In national currency
Central bank
Other depository corporations
Other financial corporations
Central government 3/
State and local government 4/
Public nonfinancial corporations 4/
Other nonfinancial corporations 4/
Other resident sectors 4/
Nonresidents
In foreign currency
Central bank
Other depository corporations
Other financial corporations
Central government 3/
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Other deposits
In national currency
Central bank
Other depository corporations
Other financial corporations
Central government 3/
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
In foreign currency
Central bank
Other depository corporations
Other financial corporations
Central government 3/
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Securities other than shares, included in broad money
In national currency
Other financial corporations
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
In foreign currency
Other financial corporations
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Securities other than shares, excluded from broad money
In national currency
Central bank
Other depository corporations
Other financial corporations
Central government
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
In foreign currency
Central bank
Other depository corporations
Other financial corporations
Central government
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Loans 5/
Central bank
Other depository corporations
Other financial corporations
Central government
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Insurance technical reserves
Net equity of households in life insurance reserves
Residents
Nonresidents
Net equity of households in pension funds
Residents
Nonresidents
Prepayment of premiums and reserves against outstanding claims
Central bank
Other depository corporations
Other financial corporations
Central government
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Financial derivatives 5/
Central bank
Other depository corporations
Other financial corporations
Central government
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Other accounts payable
Trade credit and advances
Central bank
Other depository corporations
Other financial corporations
Central government
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Other
Resident sectors
Nonresidents
Shares and other equity
Funds contributed by owners
Retained earnings
General and special reserves
SDR allocations
Valuation adjustment
Total liabilities
Note: In the table, social security funds are included in central government or state and local government as appropriate. Alternatively, social security funds may be classified as a separate subsector of general government and identified separately in the sectoral balance sheet.

National currency includes that issued by the central bank and central government and, in exceptional cases, by other depository corporations.

These categories would apply, for example, to other financial intermediaries that accept deposits from other depository corporations but do not accept any deposits included in the national definition of broad money. If these financial corporations begin to accept deposits included in the national definition of broad money, they should be reclassified as other depository corporations.

In the sectoral balance sheet, as shown, central government deposits are assumed to be excluded from broad money.

These categories include transferable deposits that are held in other depository corporations that are not operating and are in the process of being liquidated or reorganized.

In exceptional circumstances, some types of loans might be included in the national definition of broad money. If so, loans would need to be disaggregated into separate categories for (1) loans included in broad money and (2) loans excluded from broad money. Similarly, if some types of financial derivatives were included in the national definition of broad money, separate categories would be needed for (1) financial derivatives included in broad money and (2) financial derivatives excluded from broad money.

Pertains only to float arising from those items in the process of collection that (1) are associated with transferable deposits included in broad money and (2) are items for which the central bank has provided the funds to the other depository corporations that sent the items for collection, but have not yet been collected from the other depository corporations on which the items were drawn.

Pertains to either (1) all interest that is overdue for payment or (2) all interest that has been overdue for a specified period (for example, 60 days or longer). The specific rule applied in the national context should be indicated in a footnote,

Comprises the amount of loan loss provisions and all expected loans losses not covered by the loss provisions.

Fair values should be used for shares and other equity that are not traded.

Memorandum ItemsOpening StockTransactionsValuation ChangesOther Changes in VolumeClosing Stock
Assets
1. Central bank float (applicable to central bank only) 6/
2. Loans: Of which accrued interest
3. Loans: Of which interest arrears 7/
Central bank
Other depository corporations
Other financial corporations
Central government
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
4. Loans: Of which expected losses 8/
Central bank
Other depository corporations
Other financial corporations
Central government
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Liabilities
1. Loans: Or which accrued interest
2. Loans: Of which interest arrears 7/
3. Shares and other equity: Market value by holding sector 9/
Central bank
Other depository corporations
Other financial corporations
Central government
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Nonresidents
Note: In the table, social security funds are included in central government or state and local government as appropriate. Alternatively, social security funds may be classified as a separate subsector of general government and identified separately in the sectoral balance sheet.

National currency includes that issued by the central bank and central government and, in exceptional cases, by other depository corporations.

These categories would apply, for example, to other financial intermediaries that accept deposits from other depository corporations but do not accept any deposits included in the national definition of broad money. If these financial corporations begin to accept deposits included in the national definition of broad money, they should be reclassified as other depository corporations.

In the sectoral balance sheet, as shown, central government deposits are assumed to be excluded from broad money.

These categories include transferable deposits that are held in other depository corporations that are not operating and are in the process of being liquidated or reorganized.

In exceptional circumstances, some types of loans might be included in the national definition of broad money. If so, loans would need to be disaggregated into separate categories for (1) loans included in broad money and (2) loans excluded from broad money. Similarly, if some types of financial derivatives were included in the national definition of broad money, separate categories would be needed for (1) financial derivatives included in broad money and (2) financial derivatives excluded from broad money.

Pertains only to float arising from those items in the process of collection that (1) are associated with transferable deposits included in broad money and (2) are items for which the central bank has provided the funds to the other depository corporations that sent the items for collection, but have not yet been collected from the other depository corporations on which the items were drawn.

Pertains to either (1) all interest that is overdue for payment or (2) all interest that has been overdue for a specified period (for example, 60 days or longer). The specific rule applied in the national context should be indicated in a footnote,

Comprises the amount of loan loss provisions and all expected loans losses not covered by the loss provisions.

Fair values should be used for shares and other equity that are not traded.

Note: In the table, social security funds are included in central government or state and local government as appropriate. Alternatively, social security funds may be classified as a separate subsector of general government and identified separately in the sectoral balance sheet.

National currency includes that issued by the central bank and central government and, in exceptional cases, by other depository corporations.

These categories would apply, for example, to other financial intermediaries that accept deposits from other depository corporations but do not accept any deposits included in the national definition of broad money. If these financial corporations begin to accept deposits included in the national definition of broad money, they should be reclassified as other depository corporations.

In the sectoral balance sheet, as shown, central government deposits are assumed to be excluded from broad money.

These categories include transferable deposits that are held in other depository corporations that are not operating and are in the process of being liquidated or reorganized.

In exceptional circumstances, some types of loans might be included in the national definition of broad money. If so, loans would need to be disaggregated into separate categories for (1) loans included in broad money and (2) loans excluded from broad money. Similarly, if some types of financial derivatives were included in the national definition of broad money, separate categories would be needed for (1) financial derivatives included in broad money and (2) financial derivatives excluded from broad money.

Pertains only to float arising from those items in the process of collection that (1) are associated with transferable deposits included in broad money and (2) are items for which the central bank has provided the funds to the other depository corporations that sent the items for collection, but have not yet been collected from the other depository corporations on which the items were drawn.

Pertains to either (1) all interest that is overdue for payment or (2) all interest that has been overdue for a specified period (for example, 60 days or longer). The specific rule applied in the national context should be indicated in a footnote,

Comprises the amount of loan loss provisions and all expected loans losses not covered by the loss provisions.

Fair values should be used for shares and other equity that are not traded.

388. The sectoral balance sheets and the accompanying memorandum items provide the data needed for the compilation of the surveys. Some of the memorandum items are needed for compiling the monetary and financial statistics in most or all countries. The other memorandum items are needed in some countries and are useful for more detailed analysis in most countries.

389. Data on central bank float (shown as a memorandum item) are needed for the compilation of the DCS for each country in which such float is provided by the central bank. Data on the market values (or fair values) of shares and other equity (also shown as memorandum items), disaggregated by holding sector, are necessary elements for the compilation of the flow of funds and related stock data described in Chapter 8.

390. In some countries, lending institutions may be required to exclude interest arrears (i.e., interest that is overdue for payment) from the valuation of loans, or they may be required to report the expected realizable values of their loan portfolios—that is, the values adjusted for expected loan losses. Neither type of adjustment—for interest arrears or expected loan losses—is recommended for the loan data shown in the sectoral balance sheets. However, memorandum items for (1) interest arrears on loans and (2) expected loan losses are recommended for use in obtaining alternative valuations of loan portfolios. As shown in the memorandum items in Table 7.1, it is recommended that the data on interest arrears and expected loan losses be disaggregated by sector, thereby facilitating the compilation of disaggregated loan data based on the alternative valuation methods. Such data are useful for supervisory purposes and macroeconomic analysis, regardless of whether the reporting of such data is mandated by law, regulation, or national practice.

391. Box 7.1 shows examples for further disaggregation of sectoral balance sheets that may be appropriate in a particular national context. In some countries, more disaggregated categories of the depository corporations’ liabilities may be needed to provide data for monetary aggregates that are more narrowly defined than the national definition of broad money.

392. Even though the sectoral balance sheets provide the complete set of data necessary for the compilation of surveys and flow of funds, additional data are needed for macroeconomic analysis. Box 7.2, relating to financial derivatives and contingent items, gives examples of additional categories of data to supplement, or accompany, the sectoral balance sheets.

SURVEYS OF FINANCIAL CORPORATIONS

393. Illustrative surveys of the financial corporations sector are presented at the end of this chapter. These surveys utilize, and rearrange into analytical presentations, the data in the illustrative sectoral balance sheets that are shown in Appendix 3 of this manual. These surveys comprise those for the three subsectors of the financial corporations subsector, namely, the CBS, the ODCS, and the OFCS, and the two higher-level surveys based on them. As mentioned at the beginning of this chapter, the CBS and the ODCS are consolidated to obtain the DCS, and the three subsector surveys are consolidated to obtain the FCS. The surveys show both stocks and flows, with the latter broken down into their three components.

Box 7.1.Examples for Further Disaggregation of Sectoral Balance Sheets

Assets

Deposits

Other deposits by maturity (short- and long-term or other maturity breakdown)

Deposits with nonresidents by country of issuance

Securities other than shares

By maturity (short- and long-term or other maturity breakdown)

By type (certificates of deposit, commercial paper, bankers’ acceptances, bills, bonds, etc.)

Securities under repurchase agreement

Nonresident securities by debtor country

Loans

By maturity (short- and long-term or other maturity breakdown)

Loans arising from repurchase agreements, by debtor sector/subsector

Nonresident loans by (1) debtor country and (2) type of debtor (IMF, other international organization, central bank, foreign government, etc.)

Financial derivatives

By major category (i.e., futures contract, other forward contract, or options contract) and subcategory.

Liabilities

Deposits

Other deposits by maturity (short- and long-term or other maturity breakdown)

Deposits of nonresidents by country of holder

Securities other than shares

By maturity (short- and long-term or other maturity breakdown)

By type (certificates of deposit, bankers’ acceptances, commercial paper, etc.)

Loans

By maturity (short- and long-term or other maturity breakdown)

Loans arising from repurchase agreements, by creditor sector/subsector

Nonresident loans by (1) creditor country and (2) type of creditor (IMF, other international organization, central bank, foreign government, etc.)

Financial derivatives

By major category (i.e., futures contract, other forward contract, or option contract) and subcategory

Box 7.2.Examples of Supplementary Data

Assets

Financial derivatives: Notional values

By category of underlying asset (deposits, loans, securities, etc.)

By risk type (interest rate risk, exchange rate risk, etc.)

Liabilities

Financial derivatives: Notional values

By category of underlying asset (deposits, loans, securities, etc.)

By risk type (interest rate risk, exchange rate risk, etc.)

Contingent Items

Guarantees by category of guaranteed obligation (deposits, loans, securities, etc.)

Commitments by category (credit line, loan commitment, underwriting contract, etc.)

394. The survey for each financial corporations subsector is built around the accounting identity underlying the sectoral balance sheet and is structured to provide an analytic presentation of the intermediation role of the relevant subsector. For each survey, the asset side focuses on credit extended to nonresidents and to each of the various domestic sectors. The liability side of the CBS and the ODCS is structured to show those liabilities that are included in broad money and, for the CBS, to show the components of the monetary base. The liability side of the FCS separately identifies insurance technical reserves, since these form a substantial part of the liabilities of the other financial corporations subsector in many countries.

395. The subsector surveys share the following common characteristics:

  • • Foreign assets are presented on both a net and a gross basis, with breakdowns by instrument. Movements in net foreign assets provide an indication of the direct domestic monetary impact of the subsectors’ transactions with the rest of the world.43

  • • Claims on central government are shown on both a net and a gross basis. The presentation on a net basis facilitates the analysis of financial corporations’ financing of central government operations.

  • • Claims on domestic sectors other than central government are disaggregated into claims on (1) state and local government, (2) public nonfinancial corporations, (3) other nonfinancial corporations, and (4) other resident sectors, comprising households and NPISHs.

  • • Claims on and liabilities to each of the other subsectors of the financial corporations sector are separately identified to enable the consolidation of the subsector surveys in the DCS and the FCS.

  • • The primary disaggregation on the liabilities side is by instrument. For the CBS and the ODCS, a further distinction is made between those liabilities that are included in the national definition of broad money and those that are excluded, with further breakdowns by sector. This distinction is not relevant for the OFCS, because other financial corporations, by definition, cannot issue broad money liabilities.

  • • Unlike other categories of assets and liabilities, liabilities in the form of shares and other equity are neither sectorized nor netted out in the consolidation process. Rather, they are shown as a separate class of liabilities in order to provide a comprehensive view of the capital base of the institutional units in each subsector.

396. Claims on and liabilities to nonresidents and domestic sectors are obtained by aggregating the respective items in the sectoral balance sheets. While this is largely self-explanatory, the following should be noted:

  • • The reserve deposits component of liabilities to other depository corporations in the CBS, and the corresponding entry in the ODCS, comprises other depository corporations’ transferable deposits, denominated in national and foreign currency, held at the central bank.

  • • In the ODCS, the currency component of claims on central bank pertains to other depository corporations’ holdings of national currency.

  • • The other items (net) component in the CBS equals other liabilities less other assets. The other liabilities component is the sum of liabilities to resident sectors under the other category of other accounts payable and those liabilities under insurance technical reserves that are liabilities to resident sectors other than the central government and the other financial corporations’ subsectors. The other assets component is the sum of claims on resident sectors under the other category of other accounts receivable and nonfinancial assets. In addition to these items, other items (net) for the ODCS and the OFCS includes a consolidation adjustment in which the claims on and liabilities to other institutional units within the subsector are netted out by deducting claims on other units within the subsector from liabilities to those units. The consolidation adjustment therefore reflects discrepancies among the data reported by individual units on their positions and transactions with other units in the subsector.

397. The DCS and the FCS, which are obtained by consolidating the relevant subsector surveys, have some of the features of the subsector surveys. Foreign assets and claims on central government are shown on both a net and a gross basis, and claims on other domestic sectors are broken down by sector.

398. The focus of the DCS is on broad money, which comprises currency outside depository corporations and the other categories of depository corporations’ liabilities, broken down by sector, that are included in broad money. Currency outside depository corporations comprises currency in circulation, from the CBS, less the currency component of other depository corporations’ claims on the central bank shown in the ODCS.

399. Central bank float, which is shown as a memorandum item on the sectoral balance sheet of the central bank, is deducted from the transferable deposits component of broad money, with a contra-entry in other liabilities. Central bank float represents the amount that the central bank has provided to depository corporations that have sent checks or other items for collection.

400. Liabilities that are not included in broad money are shown by category, and liabilities to the other financial corporations are shown separately (as “of which” items) to enable data consolidation in compiling the FCS directly from the DCS and OFCS.44

401. The consolidation adjustment in the DCS is shown as a separate component of other items (net) and is obtained as follows: (1) central bank liabilities to other depository corporations less other depository corporations’ claims on the central bank in the form of reserve deposits and other claims plus (2) depository corporations’ liabilities to the central bank less central bank claims on other depository corporations plus (3) the consolidation adjustment from the ODCS.

402. The FCS provides comprehensive data for the financial corporations sector’s claims on and liabilities to all domestic sectors and nonresidents. The FCS contains the same asset categories as the DCS. However, the FCS contains considerably fewer subcategories of liabilities than in the DCS, because the FCS is not structured to show the liability components of broad money. In fact, some components of broad money—namely, other financial corporations’ currency holdings and their holdings of deposits and securities issued by depository corporations—have been netted out in the consolidation of the financial corporations sectors’ data in the FCS. The presentation in the liability section of the FCS also differs from the DCS in that the FCS contains a separate liability category for insurance technical reserves. This presentation reflects the significant contribution of such reserves to the total liabilities of the financial corporations sector in many countries and the usefulness of such data for analysis of the activities of the entire sector.

A MONETARY AUTHORITIES ACCOUNT

403. The CBS covers only central banking functions performed by the central bank. In some countries, however, certain central banking functions are performed wholly or partly by the central government. These include currency issuance, the holding of international reserves, and the conducting of transactions with the IMF.45 In such situations, consideration could be given to compiling a monetary authorities account. In this account, data relating to central banking functions performed by the central government should be included along with the data in the CBS, and the contra-entries for the data pertaining to central government functions would be shown as adjustments (positive or negative) in a separate set of adjustment accounts that are not subsumed in net claims on central government. Alternatively, data on monetary authorities’ activities outside the central bank may be shown as memorandum items accompanying the CBS.

ILLUSTRATIVE SURVEYS FOR THE FINANCIAL CORPORATIONS SECTOR

404. Illustrative surveys for the three subsectors of the financial corporations sector, and the DCS and the FCS, are shown in Tables 7.2-7.6. The surveys embody the data in the illustrative sectoral balance sheets in Appendix 3 of this manual.

Table 7.2.Central Bank Survey
Opening StockTransactionsValuation ChangesOther Changes in VolumeClosing Stock
Net foreign assets1288633681211717472
Claims on nonresidents1620035022389322094
Monetary gold and SDR holdings43070473550
Foreign currency2915347
Deposits460615566916853
Securities other than shares38026485705020
Loans650811289768612
Financial derivatives75191113955
Other74-6-1157
less: Liabilities to nonresidents-3314-134-11784-4622
Deposits-1917-146-304-2089
Securities other than shares-775-72
Loans-1105-1001-2106
Financial derivatives-126-19-175-320
Other-892628-35
Claims on other depository corporations1654-105111560
Net claims on central government3498-14196302699
Claims on central government4514-11076304037
Securities4105-11096163612
Other claims409214425
less: Liabilities to central government-1016-322-1338
Deposits-1000-315-1315
Other liabilities-16-7-23
Claims on other sectors4325934-101019
Other financial corporations110352-3459
State and local government33-627
Public nonfinancial corporations1792515-5430
Other nonfinancial corporations93-52-387
Other resident sectors171-216
Monetary base191132380-219921283
Currency in circulation40072504257
Liabilities to other depository corporations113871736-2211212908
Reserve deposits109791604-261712329
Other liabilities408132345579
Deposits included in broad money37193948-34118
Transferable deposits32694238-33697
Other financial corporations54178-376
Stale and local government
Public nonfinancial corporations481361
Other nonfinancial corporations
Other resident sectors31673933560
Other deposits450-29421
Other financial corporations70575
State and local government230-45185
Public nonfinancial corporations15011161
Other nonfinancial corporations
Other resident sectors
Securities other than shares, included in broad money
Other financial corporations
State and local government
Public nonfinancial corporations
Other nonfinancial corporations
Other resident sectors
Deposits excluded from broad money
Of which: Other financial corporations
Securities other than shares, excluded from broad money
Of which: Other financial corporations
Loans
Of which: Other financial corporations
Financial derivatives79-311-582
Of which: Other financial corporations22-55-517
Trade credit and advances821597
Of which: Other financial corporations241135
Shares and other equity3886120572506
Funds contributed by owners122122
Retained earnings9552147
General and special reserves46955
SDR allocations37441
Valuation adjustment8820532141
Other items (net)-1192-267-7-1218
Other liabilities69616-1477
less: Other assets-1261-32-97-1295
Table 7.3.Other Depository Corporations Survey
Opening StockTransactionsValuation ChangesOther Changes in VolumeClosing Stock
Net foreign assets10332-541925612209
Claims on nonresidents1608835722631218720
Foreign currency123421214331592
Deposits13854105198815947
Securities other than shares340751398
Loans41231702515
Financial derivatives35-12-5220
Other21314165248
less: Liabilities to nonresidents-5756-411-338-6-6511
Deposits-2178-171-112-2461
Securities other than shares-10858-209-3-1289
Loans-5962-2-596
Financial derivatives-11214-31-1-130
Other-1785-26212-2035
Claims on central bank10798188582612771
Currency35771-22428
Reserve deposits10267170074212043
Other claims174114102300
Net claims on central government86971149858914
Claims on central government88051129969022
Securities other than Shares87961119969012
Other claims9110
less: Liabilities to central government-1082-1-1-108
Deposits-567-1-50
Other liabilities-52-5-1-58
Claims on other sectors98371-163544-51198241
Other financial corporations160-12161
State and local government12822132
Public nonfinancial corporations573820869-515964
Other nonfinancial corporations72124-431300-28971704
Other resident sectors2022159175-17520280
Liabilities to central bank159531151641
Deposits included in broad money914372775252096732
Transferable deposits3941841203143569
Other financial corporations870987059584
State and local government448452495
Public nonfinancial corporations653482347361
Other nonfinancial corporations1302213201214354
Other resident sectors107051062811775
Other deposits52019-1345248953163
Other financial corporations609372
State and local government54-2153
Public nonfinancial corporations12093132
Other nonfinancial corporations15012-173039713679
Other resident sectors36773369208539227
Securities other than shares, Included In broad money2709737416731301
Other financial corporations101824133
State and local government21-7317
Public nonfinancial corporations4731484571
Other nonfinancial corporations1370051209515846
Other resident sectors12802-29196114734
Deposits excluded from broad money108713401140
Of which: Other financial corporation312-104306
Securities other than shares, excluded from broad money5301071118756
Of which: Other financial corporations10611192138
Loans
Of which: Other financial corporations
Financial derivatives10816162142
Of which: Other financial corporations122-212
Trade credit and advances30-1332
Of which: Other financial corporations4812
Shares and other equity2010088-40604616174
Funds contributed by owners7896247920
Retained earnings634276126430
General and special reserves473212104754
Valuation adjustment1130-4060-2930
Other items (net)-13786-1284-160-553-15783
Other liabilities1873-125-5401208
less: Other assets-15672-1228-2163-17113
plus: Consolidation adjustment136956-16122
Table 7.4.Other Financial Corporations Survey
Opening StockTransactionsValuation ChangesOther Changes in VolumeClosing Stock
Net foreign assets50608102122-67986
Claims on nonresidents1575311602161-1219062
Foreign currency76222117-3898
Deposits1252-611881379
Securities other than shares123891213179715399
Loans512-1759-2552
Financial derivatives3257-242
Other806-2-7-5792
less: Liabilities to nonresidents-10693-350-396-11076
Deposits
Securities other than shares-59-8193-45
Loans-11-3-42-16
Financial derivatives-12-13-31-27
Other-10611-326-51-10988
Claims on depository corporations958110225-279681
Currency123-14-2107
Other claims945811625-259574
Net claims on central government2264944711-523102
Claims on central government2267645812-623140
Securities2267645812-623140
Other claims
less: Liabilities to central government-27-11-11-38
Deposits
Other liabilities-27-11-11-38
Claims on other sectors92560563141-8698146
State and local government3288147-23433
Public nonfinancial corporations8451-30221-338137
Other nonfinancial corporations77564569812-3283242
Other resident sectors3257888-193334
Deposits
Of which: Depository corporations
Securities other than shares28828-28-6282
Of which: Depository corporations369
Loans41-6237
Of which: Depository corporations36-10430
Financial derivatives892617-5127
Of which: Depository corporations782113-3109
Insurance technical reserve12910268311620137553
Net equity of households in life insurance reserves22357222124578
Net equity of households in pension funds9999943651620105984
Prepayment of premiums and reserves against outstanding claims67462456991
Of which: Depository corporations301444
Trade credit and advances811-379
Of which: Depository corporations29635
Shares and other equity11336121535-4611946
Funds contributed by owners5676-245652
Retained earnings4572109-124669
General and special reserves43212-10434
Valuation adjustment6565351191
Other items (net)-11087-1153-64-11109
Other liabilities1872756-64206
less: Other assets-11266-57102-11311
plus: Consolidation adjustment-819-13-2-4
Table 7.5.Depository Corporations Survey
Opening StockTransactionsValuation ChangesOther Changes in VolumeClosing Stock
Net foreign assets23218331431361329681
Claims on nonresidents32288385946521540814
less: Liabilities to nonresidents-9070-545-1516-2-11133
Domestic claims110998-8851276-516110873
Net claims on central government12195-1315728511613
Claims on central government13319-995729613059
less: Liabilities to central government-1124-320-1-1-1446
Claims on other sectors98803430548-52199260
Other financial corporations270351-32620
State and local government161-42159
Public nonfinancial corporations591745974-566394
Other nonfinancial corporations72217-436302-29271791
Other resident sectors2023860175-17720296
Broad money liabilities12577033406697-5135802
Currency outside depository corporations36501792-23829
Transferable deposits42554449839-347088
Other financial corporations876388713-39660
State and local government448452495
Public nonfinancial corporations658283647422
Other nonfinancial corporations1302213201214354
Other resident sectors138721455815335
Less: Central bank float-133-45-178
Other deposits52469-1374248953584
Other financial corporations130143147
State and local government284-471238
Public nonfinancial corporations270203293
Other nonfinancial corporations15012-173039713679
Other resident sectors36773369208539227
Securities other than shares, Included in broad money2709737416731301
Other financial corporations101824133
State and local government21-7317
Public nonfinancial corporations4731484571
Other nonfinancial corporations1370051209515846
Other resident sectors12802-29196114734
Deposits excluded from broad money108713401140
Of which: Other financial corporations312-104306
Securities other than shares, excluded from broad money5301071118756
Of which: Other financial corporations10611192138
Loans
Of which: Other financial corporations
Financial derivatives1871327-3224
Of which: Other financial corporations34-33-529
Trade credit and advances112143129
Of which: Other financial corporations281947
Shares and other equity20488149-20034618680
Other items (net)-13958-1207-460-552-16177
Other liabilities (includes central bank float)2075-7416-5541463
less: Other assets-16933-1260-22510-18408
plus: Consolidation adjustment900127-251-8768
Memorandun item: Central bank float13345178
Table 7.6.Financial Corporations Survey
Opening StockTransactionsValuation ChangesOther Changes in VolumeClosing Stock
Net foreign assets2827841245258737667
Claims on nonresidents4804150196813359876
less: Liabilities to nonresidents-19763-895-15554-22209
Domestic claims22593748421331-609231501
Net claims on central government34844-86873934715
Claims on central government35995-53774136199
less: Liabilities to central government-1151-331-2-1484
Claims on other sectors1910935710592-609196786
State and local government34491433592
Public nonfinancial corporations1436815795-8914531
Other nonfinancial corporations1497815262314-324155033
Other resident sectors23495148183-19623630
Currency outside financial corporations352719323722
Deposits869052246254891699
Securities other than shares27705147420732059
Loans54-27
Financial derivatives1642128213
Insurance technical reserves12907268171620137509
Trade credit and advances136-10126
Shares and other equity31824270-146830626
Other items (net)-25123-722-346-602-26793
Other liabilities2262-4772-6181669
less: Other assets-28199-1317-21512-29719
plus: Consolidation adjustment814642-20341257

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