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Transcript
National Balance Sheet
Accounts in Israel
Methods and Uses
1
Contents
• Introduction
• Sources and Methods
• Co-operation with the financial
stability unit at the Bank of Israel
• Uses of the balance sheets
• Main findings of latest balance sheet
2
Introduction
• The national balance sheet accounts
for Israel were first published in 2002
for the year 1995.
• Since then the balance sheets have
been prepared for the years 2001 to
2004 (presently completing 2005-2006).
• Over the years changes in number of
sub sectors and types of instruments
have been introduced.
3
Sources and Methods
• The value of asset/liability derived
from :
- method related to an institutional
sector
- distribution of the total value of
an asset/liability among various
sectors.
4
Sources and Methods
• First phase: assets and liabilities are
recorded in accordance with the data in
each sector’s financial statements.
• Second phase: comparison between
the sums of assets and the
corresponding liabilities. Choosing the
most reliable estimate.
• Third phase: if no information is
available we use the “counterpart”
method or the “residual derivation”
method.
5
Sources and Methods
• Non Financial Corporations, Other
Financial Intermediaries and
Financial Auxiliaries – based on the
analysis of the balance sheets of the
corporations.
• Households – balance sheets of
other sectors and information about
specific assets known for the
households (deposits and loans).
6
Sources and Methods
• Deposit Money Corporations – the main
source is the Central Bank, Supervisor
of banks, and some details are
collected directly from the large banks.
• Pension and Provident Funds and
Insurance Corporations – the source is
the report of Capital Market of the
Insurance and Saving division of the
Ministry of Finance.
7
Sources and Methods
• Central Government – the source is
the Ministry of Finance, Office of the
Accountant General.
• NPISH and GNPI – survey of balance
sheets for public and private NPI
conducted by the CBS.
8
Sources and Methods
• The Tel Aviv Stock Exchange is the
source for the market values of the
quoted governmental bonds, quoted
private bonds and shares.
• The source for the non financial
assets is the net capital stock
calculated in the NA using the PIM
method (doesn’t include land).
9
Co-operation with the financial
stability unit at the Bank of Israel
Has led to changes in balance sheets:
 Separation of the Holding Companies from
the Other Financial Intermediaries.
 Division between foreign currency indexed
assets and CPI indexed assets – used to
sum up all assets linked or denominated in
foreign currency (to analyze the economy’s
resilience to exchange rate risk).
10
Co-operation with the financial
stability unit at the Bank of Israel
 Breakdown of assets and liabilities
by maturity (to analyze liquidity
risks).
 Compilation of up-to-date quarterly
national balance sheets (still under
development).
11
Uses of the balance sheets
• Paper which presents a framework
for analyzing an economy’s
resilience to exchange rate risk using
the balance sheet approach.
This analysis shows that Israel’s
economy was highly vulnerable to a
depreciation of the shekel in 1997,
but from then until 2005 it became
more resilient. (written by Yair Haim
and Roee Levy of the Bank of Israel).
12
Uses of the balance sheets
• Distribution of credit by all the lender
and borrower sectors and by type of
financial instrument – last data
available is for 2004.
Based on the latest complete balance
sheet a similar but partial matrix is
prepared by the Central Bank to have
an up-to-date preliminary set of data
– last matrix available at present is
for the first quarter of 2008.
13
Uses of the balance sheets
• The financial stability unit also uses
the balance sheets and other data as
basic input for calculating financial
soundness indicators.
14
Main findings - 2004
• Israel’s total national wealth – NIS
1,166 billion, which is 2.06 times
GDP.
• The total assets – NIS 5,139 billion,
which is 9.1 times GDP.
• The government debt (mainly bonds)
– NIS 564 billion.
15
Main findings - 2004
• The total credit – NIS 1,388 billion.
The loans from the banks – 44% of the
total credit. Were mainly given to NonFinancial Corporations (50%) and the
households (38%).
Total credit to Non-Financial
Corporations - NIS 428 billion
Total credit to the Households – NIS
241 billion.
16
Distribution of assets - 2004
Non
Financial
Corporations
17.6%
Financial
Corporations
32.6%
17
Households
and NPISH
42.1%
Government
, Local
Authorities
and GNPI,
7.7%
Distribution of liabilities - 2004
Non
Financial
Corporations
17%
Financial
Corporations
52%
18
Households
and NPISH
10%
Government,
Local
Authorities
and GNPI
21%
Ratio of financial assets to nonfinancial assets
3.20
3.10
3.00
3.10
2.98
2.90
2.97
2.83
2.80
2.70
2.60
2001
2002
2003
YEAR
19
2004
Conclusion
• The balance sheets were first
developed within the NA.
• The collaboration with the Central
Bank has proved fruitful and has lead
to wider use of the balance sheets,
mainly for analysis of financial
soundness.
• The ongoing development of the
balance sheets will make further uses
possible in the future.
20