Regional Seminar on Developing a Programme for the Implementation of the 2008 SNA an Supporting Statistics in the ECO member countries 11 – 13 September 2013 Ankara, Turkey VI. Discussion on selected issues on SNA implementation  Measurement of output of financial services Wolfgang Eichmann Federal Statistical Office Germany

© Federal Statistical Office Germany, Wolfgang Eichmann Slide 2 AGENDA I.The fundamental problem II.FISIM - Concept - Data III.Insurance - Concept - Data IV.Other Financial Institutions V.Full implementation programme

© Federal Statistical Office Germany, Wolfgang Eichmann Slide 3 I. The fundamental problem Output: turnover, change in inventories, value of own account production 3 problematic sectors:  Government  Banks  Insurance => Sum of costs => Margin

© Federal Statistical Office Germany, Wolfgang Eichmann Slide 4 II. FISIM – concept Imputed bank service charge (old) and FISIM (new) A comparison Assumption: loans = deposits

© Federal Statistical Office Germany, Wolfgang Eichmann Slide 5 II. FISIM – data  1. Stocks: Banking Statistics Loans and deposits classified by institutional sectors (including S2 without interbank) For sector private Households in addition subclassified:  housing credits (=> Intermediate consumption)  small business (=> Intermediate consumption)  consumer credits (=> Private consumption) classified by currency  2. Interest rates: Interest rate statistics classified as above average rates, not merely „new business“  3. Reference rate internal (domestic currency) = average interbank rate external: specific solutions (foreign currency) (e.g. IMF-Interest Rate Statistics Libor, Euribor etc.)  4. For imports in addition International Investment Positions Statistics IMF – Interest Rate Statistics

© Federal Statistical Office Germany, Wolfgang Eichmann Slide 6 IMF classification of Islamic financial instruments Islamic financial instrumentIMF classificationFisim Funds for Islamic financial institutions Amanah and Qard-hasan depositsDepositsYes MudarabahStocksNo Participation term certificates If treated as liability = Deposits Yes Profit and loss sharing certificates and investment deposits Deposits (?) Credits supplied by Islamic financial institutions Qard-hasan loansLoans but return-freeTo be discussed MurabahaLoanYes MusharakahLoanYes IjaraLoanYes Ijara Wa IktinaLoanYes Salaf/SalamLoanYes Zakat fundsFundsNo Source: IMF Monetary and Financial Statistics Manual, Washington 2000, Appendix 2: Islamic Banking.

© Federal Statistical Office Germany, Wolfgang Eichmann Slide 7 III. Insurance – concept Insurance premium Break down Gross premium written Unearned premiums Earned premiums Reinsurance Earned premiums net of reinsurance Premium supplement Earned premiums Total premiums earned Change in insurance technical reserves Claims paid Insurance services Insurance Accounting National Accounts Unearned premiums

© Federal Statistical Office Germany, Wolfgang Eichmann Slide 8 III. Insurance – data Balance sheets / Gain and Loss account provided by the Insurance Supervising Authority by classes of insurance Note: Reinsurance in SNA2008/BPM6 is treated like non-life insurance Data problems for importers of reinsurance services For details see: The new treatment of reinsurance transactions in national accounts UNECE: Group of Experts on National Accounts Eleventh session Geneva, 30 April-4 May 2012 Item 6 2/10_Germany_reinsurance.pdf

© Federal Statistical Office Germany, Wolfgang Eichmann Slide 9 IV. Other Financial Institutions Example: Treatment of trade margins in National Accounts ask price (120) The bank sells a security mid price (100) financial service (20) bid price (80) The bank buys a security

© Federal Statistical Office Germany, Wolfgang Eichmann Slide 10 V. Full implementation programme 1. Seminar on concepts in National Accounts for financial institutions Participants: National Statistical Office, Central Bank, Insurance Supervisory, Ministry of Finance

ASA Institut für Sektoranalyse und Politikberatung GmbH Czech Statistical Office Seminar on insurance, credit institutions and pension funds in National Accounts AGENDA Day 1, Monday, 28 February Morning sessions 9:30 – 12:30 Short introduction to National Accounts Treatment of banks in National Accounts  Concept and impact on major National Accounts aggregates  A short look on banks in the Structural Business Statistics 12:30 – 14:00Break Afternoon sessions 14:00 – 16:00 Implementation of the concept and statistical sources  Monetary Statistics - Balance sheet statistics  Monetary Statistics - Interest rate statistics  International Investment position: external assets and liabilities Day 2 – Tuesday, 1 March Morning sessions 9:30 – 12:30  Sequence of accounts for the banking sector  Output of the Central Bank  Specific problems S123: Other financial intermediaries,  except insurance corporations and pension funds  Specific problems S124: Financial auxiliaries 12:30 – 14:00Break Afternoon sessions 14:00 – 16:00  Allocation to Industries (NACE rev.2)  Regional Accounts  Price and volume measures Federal Statistics Office of Germany

ASA Institut für Sektoranalyse und Politikberatung GmbH Czech Statistical Office Seminar on insurance, credit institutions and pension funds in National Accounts AGENDA Day 3, Wednesday, 2 March Morning sessions 9:30 – 12:30 Treatment of insurance companies and pension funds in National Accounts Concept and impact on major National Accounts aggregates  Non-life insurance  Life insurance  Pension Funds A short look on insurance companies and pension funds in the Structural Business Statistics 12:30 – 14:00Break Afternoon sessions 14:00 – 16:00 Implementation of the concept and statistical sources  Example: Stock Company for Insurance and Reinsurance QBE Makedonija  Example: Nov Penziski Fond A.D. Skopje Import of reinsurance services Day 4, Thursday, 3 March Morning sessions 9:30 – 12:30  Sequence of accounts for insurance companies and pension funds  Allocation to Industries (NACE rev.2) 12:30 – 14:00Break  Regional Accounts  Price and volume measures Federal Statistics Office of Germany

© Federal Statistical Office Germany, Wolfgang Eichmann Slide 13 V. Full implementation programme 1. Implementation Workshop for Financial Institutions a) Banks NSO, CB b) Insurance companies NSO, CB, Insurance supervisory c) Other Financial Institutions NSO, CB, Supervisory Authority

© Federal Statistical Office Germany, Wolfgang Eichmann Slide 14 V. Full implementation programme 3. Time requirement  4 - days for Seminar / Workshop  6 – days preparation for each Seminar / Workshop