Download Improving financial sector statistics: p g financial accounts and flow of funds

Improving
p
g financial sector statistics:
financial accounts and flow of funds
Phil Briggs
Reserve Bank of New Zealand
Presentation for workshop on New Zealand national
accounts and financial statistics 13 June 2011
Outline
• Financial accounts and flow of funds – what are
they?
• Financial claims between sectors: an interim
comparison between Australia and New Zealand
• Feasibility study looking at whether we can
produce financial accounts
accounts, and on a regular
basis
SNA framework
Production account
GDP
Income and outlay account Savingg
Opening balance sheet Capital account
Net lending/borrowing
l d /b
Financial account
Reconciliation account Closing balance sheet AUSTRALIA, December qtr 2010: source ABS
Net transactions during period, $A, billions
Non‐financial
Financial
General
corporations corporations government Households Rest of world Discrepancy
CAPITAL ACCOUNT
Gross saving
42.3
9.5
2.8
39.1
‐
‐
plus Net capital transfers
2.1
‐
‐4.2
2.1
0.1
‐
minus Investment
47.8
1.7
15.0
36.0
‐
‐
Total
93.7
0.1
100.5
equals Net lending
‐3.4
7.8
‐16.4
5.2
8.8
‐2.0
‐6.8
Net errors and omissions
10.6
‐9.7
‐
‐2.8
‐0.2
2.0
‐
7.2
‐1.9
‐16.4
2.5
8.6
‐
‐
Net acquisition of financial assets
Monetary gold and SDRs
Currency and deposits
Short term securities other than shares
Long term securities other than shares
Derivatives
Loans and placements
Equity
Insurance technical reserves
Other accounts receivable
15.6
‐
8.8
‐0.1
0.1
‐4.9
‐1.0
16.1
‐0.4
‐3.2
13.3
‐
11.4
‐4.8
11.2
‐17.6
19.2
‐3.1
‐
‐3.0
‐4.9
‐
‐0.9
‐0.6
0.6
‐4.6
0.9
‐0.2
‐
‐0.2
24.5
‐
14.9
‐0.2
0.1
‐
‐
‐6.1
16.2
‐0.4
21.2
‐
‐1.7
10.8
8.4
‐21.5
3.8
20.3
0.1
1.1
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
69.6
‐
32.5
5.2
20.4
‐48.6
23.0
27.0
15.8
‐5.7
Net incurrence of liabilities
Monetary gold and SDRs
Currency and deposits
Short term securities other than shares
Long term securities other than shares
Derivatives
Loans and placements
Equity
Insurance technical reserves
Other accounts payable
8.4
‐
‐
‐6.7
2.9
‐3.1
‐4.9
18.7
‐
1.6
15.2
‐
23.3
11.6
‐7.1
‐27.1
5.8
‐1.3
13.6
‐3.7
11.4
‐
0.1
0.8
13.2
‐2.4
‐1.7
‐
2.2
‐0.8
22.0
‐
‐
‐0.7
‐
‐
23.3
‐
‐
‐0.6
12.6
‐
9.1
0.1
11.3
‐15.9
0.6
9.7
‐0.1
‐2.3
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
69.6
‐
32.5
5.1
20.4
‐48.6
23.0
27.1
15.8
‐5.7
FINANCIAL ACCOUNT
Net change in financial position
Deriving ‘net
net transactions’
transactions
• We take the change in stocks of assets
and adjust for revaluations and other
changes Revaluations and other changes
changes.
go into the reconciliation account.
• May sometimes be able to use direct
measures of net transactions e
e.g.
g net
flows into particular financial instruments.
Component of ‘detailed’ flow of
f d
funds
Long term securities other than shares
Holder (sector with assets)
Non‐financial
Financial
General corporations corporations government
Issuer (sector with liabilities)
Non‐financial corporations
Financial corporations
General government
General government
Households
Rest of world
Total
Households Rest of world
Total
Detailed flow of funds will show
fi
financial
i l claims
l i
b
between sectors
All financial instruments
Holder (sector with assets)
Non‐financial
Financial
General corporations corporations government
Issuer (sector with liabilities)
Non‐financial corporations
Financial corporations
General government
General government
Households
Rest of world
Total
Households Rest of world
Total
Net financial claims
Australia December 2009
Questions
• Households in Australia have significant
net claims on both the business sector and
the financial sector
sector. Would the situation be
different for New Zealand?
• Could we produce similar estimates of
sectoral
t l fifinancial
i l claims
l i
– even if they
th
were rough estimates – for New Zealand?
Actions
• Began by replicating Australian figures for
2009, and also looked at changes
between 1991
1991, 2001
2001, and 2009
• P
Produced
d
d fifigures ffor NZ ffor 2009
2009, using
i
data from AES, RBNZ, Budget documents,
annuall reports
t and
d th
the IIP
IIP.
Gross inter-sectoral claims
Australia December 2009
Final table December 2009
$A billions
$A, billions
Issuer
NFC
FC
GG
HH
RoW
Oth acc/r
Total
Holder
NFC
8.1
406.0
2.1
23
2.3
313.0
132.8
864.3
FC
1163.0
1464.0
124.0
1363 3
1363.3
697.2
45.4
4856.9
GG
64.9
122.6
2.4
14 3
14.3
46.1
87.1
337.5
HH
134.7
2003.7
204.2
00
0.0
15.5
79.6
2437.6
RoW Oth acc/p
770.0
115.7
1059.2
72.4
80.9
50.6
10
1.0
35 6
35.6
0.0
87.3
16.5
1927.7
GG
5.2
9.8
0.2
1.1
3.7
6.9
26.9
HH
10.7
159.5
16.3
0.0
1.2
6.3
194.1
RoW Oth acc/p
Oth acc/p
61.3
9.2
84.3
5.8
6.4
4.0
0.1
2.8
0.0
6.9
1.3
153.5
Total
2256.4
5127.9
464.2
1416 6
1416.6
1159.1
10424.2
Percent of GDP
Holder
Issuer
NFC
FC
GG
HH
RoW
Oth acc/r
Total
NFC
0.6
32.3
0.2
0.2
24.9
10.6
68.8
FC
92.6
116.6
9.9
108.5
55.5
3.6
386.7
Total
179.6
408.2
37.0
112.8
92.3
829.9
Gross inter-sectoral claims
Australia December 1991
Holdings,
as % of GDP
180
160
140
NFC
120
FC
100
GG
HH
80
RoW
60
40
20
0
RoW
HH
NFC
FC
GG
GG
Issuer
(sector with liabilities)
FC
HH
RoW
NFC
Holder
(sector with assets)
Gross inter-sectoral claims
Australia December 2001
Holdings,
as % of GDP
180
160
140
NFC
120
FC
100
GG
80
HH
RoW
60
40
20
0
RoW
HH
NFC
FC
GG
GG
Issuer
(sector with liabilities)
FC
HH
RoW
NFC
H ld
Holder
(sector with assets)
Gross inter-sectoral claims
Australia December 2009
Holdings,
as % of GDP
180
160
140
NFC
120
FC
100
GG
HH
80
RoW
60
40
20
0
RoW
HH
NFC
FC
GG
GG
Issuer
(sector with liabilities)
FC
HH
RoW
NFC
Holder
(sector with assets)
Gross inter-sectoral claims
A t li D
Australia
December
b 2009 (i
(inc acc/p)
/ )
Holdings,
as % of GDP
180
160
NFC
140
FC
120
GG
100
HH
RoW
o
80
60
40
20
0
RoW
HH
NFC
FC
GG
GG
Issuer
(sector with liabilities)
FC
HH
RoW
NFC
Holder
(sector with assets)
Gross inter-sectoral claims
New Zealand 2009
Holdings,
as % of GDP
180
160
140
NFC
120
FC
GG
100
HH
80
RoW
60
40
20
0
RoW
HH
NFC
FC
GG
GG
Issuer
(sector with liabilities)
FC
HH
RoW
NFC
Holder
(sector with assets)
Net financial claims
N
New
Z
Zealand
l d 2009
2009, as % off GDP
Household sector
0.2
70.0
10.0
34.1
Non financial corporates
4.4
Financial corporates
G
General
l governmentt
61.4
18.4
4.4
31.7
Rest of world
12
1.2
Net financial claims, % of GDP
NZ Australia
NZ,
A
li (in
(i red)
d)
Household sector
0.2
[-16.3]
70.0
[13.6]
10.0
[-50.2]
34.1
[58.0]
Non financial corporates
18.4
[8.0]
31.7
[31.1]
Financial corporates
61.4
[29.2]
Rest of world
4.4
[[-0.2]]
4.4
[1.2]
G
General
l governmentt
1.2
1
2
[2.0]
Should we be producing financial
accounts on a regular
l b
basis?
i ?
• Benefits
– More confrontation between data should result in better
estimates of sectoral saving
– Provides early indicators of changes in saving
– Provides information on the levels of exposure that each
sector has to other sectors, and how these are changing.
– Increases
I
our understanding
d t di off the
th New
N
Zealand
Z l d financial
fi
i l
market and aids comparisons with other countries
– SNA (and MFSM) provides a useful framework for
organising and improving our financial data
• Costs
– Time, effort, money
Feasibility study
Three stages:
• Specify data requirements and assess availability of
suitable data sources, identifying problem areas
• P
Produce,
d
if possible,
ibl annuall accounts
t ffor a short
h t
period
• Look at what would be required – including data
processing arrangements – in order to produce
financial accounts on a regular basis
Sectors
Types of financial securities
Non‐financial corporations
1 Private incorporated non
Private incorporated non‐financial
financial
2 Central government incorporated non‐financial
3 Local government incorporated non financial
4 Unincorporated non‐financial
Currency and deposits:
1 Monetary gold
Monetary gold
2 Holdings of SDRS
3 National currency
4 Foreign currency
5 Transferable deposits, national currency
6 Transferable deposits, foreign currency
7 Other deposits, national currency
8 Other deposits, foreign currency
Financial corporations
5 Central bank
6 Registered banks
7 Savings institutions (including deposit‐taking finance companies)
8 Insurance corporations 9 Pension funds
10 Investment funds (excluding pension funds) (
gp
)
11 Other finance companies (non deposit‐taking) General government
12 Central goverment (including EQC and NZ Super Fund)
13 Local government 14 Funded social security schemes (ACC)
F d d
i l
it h
(ACC)
Household sector and non‐profit institutions
15 Households (excluding unincorporates and non‐profit institutions
16 Non profit instituions Rest of world
18 Non‐resident enterprises
Short‐term debt securities:
9 Short‐term bills and commercial paper
Long term debt securities:
10 Long term bonds and debentures
Loans:
11 Short‐term loans
12 Long‐term loans
L
t
l
Shares and other equity:
13 Resident enterprises, quoted
14 Non‐resident enterprises, quoted
15 Resident enterprises, unquoted
16 Non‐resident enterprises, unquoted
Insurance technical reserves:
17 Net equity of housholds in life insurance reserves and in pension funds
18 Prepayment of premiums and reserves against outstanding claims
Other:
19 Financial derivatives (and employee stock options)
20 Trade credits and advances
21 Other accounts receivable/payable
Recap
• Financial accounts and flow of funds – what are
they?
• Financial claims between sectors: an interim
comparison
p
between Australia and New Zealand
• Feasibility
eas b ty study looking
oo g at whether
et e we
e ca
can
produce financial accounts, and on a regular
basis
End of presentation