An enhanced methodology of compiling financial intermediation services indirectly measured (FISIM) Reimund Mink Paris, 14 October 2008.

Slides:

Advertisements

Similar presentations

Measuring Banking and Insurance: The U.S. Experience Brian C. Moyer Associate Director for Industry Accounts 12 th OECD-NBS Workshop on National Accounts.

Advertisements

Classification and terminology of financial assets and liabilities in the updated SNA Reimund Mink Paris, 10 and 11 October 2005 Paper prepared for the.

Draft Handbook on National Accounting Financial Production, Flows and Stocks in the System of National Accounts OECD WP on National Accounts October.

1 10th NBS_OECD Workshop on National Accounts Item 3.1 Recommendations for new SNA 1993 rev 1 regarding the measure of output of financial services François.

1 Measurement of Production of Financial Institutions Conclusions and recommendations 3-10 by the OECD Task Force on Financial Services (Banking Services)

Regional Seminar on Developing a Programme for the Implementation of the 2008 SNA and Supporting Statistics January 30-February 1, 2013 Kingston, Jamaica.

The Financial Corporations Sector, its subsectors and Institutional Units STATE STATISTICAL COMMITTEE OF AZERBAIJAN REPUBLIC Istanbul, May 6-8, 2015.

Department of National Accounts TURKISH STATISTICAL INSTITUTE (TurkStat) Workshop on the Implementation of the SNA-2008 in EECCA Countries and Linkages.

Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder Prepared by Dr Buly Cardak 9–1.

The Overview of GDP Estimates and Related Issues in China Discussant comments Session: Recent Developments in the NBS (I) Tuesday, December 1, 2009 Kim.

Reproductions of this material, or any parts of it, should refer to the IMF Statistics Department as the source. Real Sector Division IMF Statistics Department.

Measuring and recording of household pension entitlements under government schemes in the euro area Meeting of the Group of Experts on National Accounts.

Structure of Interest Rates

1 Bonds (Debt) Characteristics and Valuation What is debt? What are bond ratings? How are bond prices determined? How are bond yields determined? What.

Structure of Interest Rates

Nadim Ahmad, OECD Presented by Peter van de Ven, OECD

$1 Million $500,000 $250,000 $125,000 $64,000 $32,000 $16,000 $8,000 $4,000 $2,000 $1,000 $500 $300 $200 $100 Welcome.

Classification of financial corporations and of financial assets Reimund Mink OECD Working Parties on Financial Statistics and on National Accounts Paris,

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.

Chapter 6 Managing Your Money. Copyright ©2014 Pearson Education, Inc. All rights reserved.6-2 Chapter Objectives Provide a background on money management.

CHAPTER 7 Money Markets. Copyright© 2003 John Wiley and Sons, Inc. Overview of the Money Market Short-term debt market - most under 120 days. A few high.

The views expressed herein are those of the author and should not necessarily be attributed to the IMF, its Executive Board, or its management Kim Zieschang.

SNA 1993 Updating - Issue 6a Financial Services, FISIM Giovanni Savio Statistics Coordination Unit, UN-ESCWA Workshop on National Accounts Cairo,

Workshop on the Implementation of the 2008 SNA in EECCA Countries and Linkages with BPM 6 and GFSM May 2015, Istanbul, Turkey 1.

Financial Services 1 UN STATISTICS DIVISION Economic Statistics Branch National Accounts Section UNSD/ECA National accounts workshop November 2005.

1 Selected Issues with Implementation of 2008 SNA (continued) Training Workshop on System of National Accounts for ECO Member Countries October 2012,

Chapter 11.1 notes. Saving Saving = not spending $ Investment – use of income today for a future benefit.

ESA 2010 GDP/GNI impact The Netherlands Marcel Pommée.

1 In the first part of our presentation, Philippe outlined changes in activities of financial corporations and presented a working definition Next question:

Overview of Financial Services in the 2008 SNA Herman Smith UNSD/DESA Workshop on the Implementation of the 2008 SNA, Kiev, 29 November – 2 December 2011.

THE USE OF ADMINISTRATIVE BANKING AND INSURANCE DATA 1 Presented by Hazel Corbin Statistics Adviser, ECCB Palm Haven Hotel Saint Lucia 3 to 7 February,

Chapter 17 Money, Banking, and Financial Markets: The Central Bank Balance Sheet and the Tools of Monetary Policy ©2010 McGraw-Hill Ryerson Ltd. Tim Berry,

Classification and terminology of financial corporations in the updated SNA Reimund Mink Paris, 10 and 11 October 2005 Paper prepared for the meeting of.

Workshop on the Implementation and Links between the System of National Accounts 2008 and the Government Finance Statistics Manual 20 – 22 November 2013,

BPM6—Update on Revision and Implementation Strategies Meeting of the OECD Working Party on International Trade in Goods and Trade in Services Statistics.

Timely statistical information for monetary policy purposes

1 Update on Work of ISWGNA Task Force on FISIM Herman Smith UNSD/DESA Workshop on the Implementation of the 2008 SNA, Kiev, 29 November – 2 December 2011.

1 Issue 6a SNA/M1.06/04 The production of financial corporations and price/volume measurement of financial services Recommendations for SNA update issue.

International Statistical Committee of the Commonwealth countries ( CIS Statistical Committee ) CIS Statistical Committee Work on Coordination and Implementation.

1 Task Force on Harmonization of Public Sector Accounting Guarantee SNA Advisory Expert Group Bangkok, July 2005.

The 12th OECD-NBS Workshop on National Accounts Research on Real Value-added Measure of the Finance Industry in China (LU Feng, NBS) Comments on paper.

BPM6—Update on Revision and Implementation Strategies Meeting of the Working Party on International Trade in Goods and Trade in Services Statistics September.

Implementation of the 2008 System of National Accounts in Azerbaijan and some challenges of FISIM estimation Author: Nuru Suleymanov State Statistics Committee.

The Calculation and Allocation of FISIM Yusuf Siddiqi CARTAC short-term expert CARTAC/ECCB Workshop on the 2008 System of National Accounts, Marriott Resort.

FINANCE IN A CANADIAN SETTING Sixth Canadian Edition Lusztig, Cleary, Schwab.

FISIM: Current Research at Statistics Canada October 4th and 5th, 2010 Eurostat Task Force on FISIM Jim Tebrake – Statistics Canada.

©Federal Statistical Office of Germany, Wolfgang Eichmann 1th Meeting of the Task Force On Financial Intermediation Services Indirectly Measured (FISIM)

Real Financial Services 1 UN STATISTICS DIVISION Economic Statistics Branch National Accounts Section UNSD/ECA National accounts workshop November 2005.

Treatment of Risks in the Measurement of FISIM Satoru Hagino Director, Statistics Development and Coordination Research and statistics department Bank.

Maturity structure Task Force FISIM October 2010 Eric Cabooter National Bank of Belgium / Institute of National Accounts.

ISWGNA Task Force on FISIM Status Report Paris October 2011 ISWGNA Task Force on FISIM Status Report OECD National Accounts Working Party Meeting Paris.

Update of the Fifth Edition of the IMF’s Balance of Payments Manual ESCWA Workshop on the Compilation of Statistics on Trade in Services Cairo, Egypt February.

CHAPTER 4 BOND PRICES, BOND YIELDS, AND INTEREST RATE RISK.

March 2007 AEG meeting Chapter 6 Main substantive comments.

A progress report on ABS investigations into FISIM in the National Accounts, the Consumer Price Index and the Balance of Payments Michael Davies Australian.

FISIM UNSD/NA/MR1 UN STATISTICS DIVISION Economic Statistics Branch National Accounts Section.

The current financial and economic crisis: Statistical initiatives of the E(S)CB Daniela Schackis European Central Bank – DG Statistics OECD Short-Term.

Accounting for Credit Default Risk in FISIM Brent Moulton Advisory Expert Group on National Accounts 13–15 April 2016.

Producing Liquidity Dennis Fixler and Kim Zieschang Society for Economic Measurement OECD, Paris July 22-25, 2015 The views expressed in this presentation.

Real Sector Division IMF Statistics Department The views expressed herein are those of the authors and should not necessarily be attributed to the IMF,

The Finance Team Government Finances. Who are we and what do we do? Consists of 8 persons Non-financial accounts for the financial sector, quarterly and.

Employer retirement pension schemes

Measurement of Production of Financial Institutions

Some remarks on the comments made by the Bank of England

The 2008 SNA Research Agenda Measuring FISIM The European Task Force on FISIM Reimund Mink European Central Bank Meeting of the OECD Working Party.

CMFB Task Force on Consistency between National Accounts and Balance of Payments Phase 2 – Final Report Bertrand Pluyaud Working Group on Balance of Payments.

The OECD Task Force on Financial Services Recommendations of the OECD Task Force on Financial Services in National Accounts, 9-11 May 2004 Anders Nordin.

Implementation of SNA2008 in China

FISIM in the EU Brian Newson Eurostat.

Selected Issues with Implementation of 2008 SNA (continued)

Presentation transcript:

An enhanced methodology of compiling financial intermediation services indirectly measured (FISIM) Reimund Mink Paris, 14 October 2008

Outline Background FISIM in international statistical standards An enhanced methodology for FISIM Estimates based on an enhanced methodology for FISIM Way forward

Background Discussions of an appropriate method to compile FISIM in the context of the SNA update and of the ESA revision Concerns have arisen from the financial market turmoil, but the shortcomings of the current framework are more general ECB research project launched in 2007 Discussion of an ECB issue paper at the Committee of Monetary, Financial and Balance of Payments Statistics (CMFB) meeting in July 2008

FISIM in international statistical standards Within the framework of international statistical standards: –FISIM should be compiled on the basis of the difference between market interest rates on loans and deposits and a reference rate as a rate between bank interest rates on deposits and loans. –The reference rate should contain no service element and reflect the risk and maturity structure of deposits and loans –The rate prevailing for inter-bank borrowing and lending may be a suitable choice –Different reference rates may be needed for each currency in which loans and deposits are denominated –This approach is reflected in the 2008 SNA (particularly paragraphs to 6.169) and in the new draft ESA chapter on FISIM.

An enhanced methodology (1/3) The conceptual framework: the case of deposits In view of deposit insurance (no default risk !), the alternative to hold money in a deposit is buying a risk-free debt security The value of the services received is: Y D = (r M – r D ) * S D = (r F + r T – r D ) * S D = m D * S D where Y D, S D, r D and m D represent the output, the stocks, the interest rate and the margin on deposits D, and r M is the yield of a debt security with similar characteristics ( = short-term risk-free rate r F + term premium r T )

An enhanced methodology (2/3) The conceptual framework: the case of loans The alternative to apply for a loan is issuing a debt security. The value of the services received is Y L = (r L – r M )* S L = (r L – (r F + r T + r P )) * S L = m L * S L where Y L, S L, r L and m L represent the output, the stocks, the interest rate and the margin on loan L, and r M is the yield of a debt security with similar (risk) characteristics (= short-term risk-free rate r F + term premium r T + credit default risk premium r P )

An enhanced methodology (3/3) Two different approaches are distinguished: Term premium adjustment only (I) Output Y = Y D + Y L (excluding term premium r T ) Credit default risk and term premium adjustment (II) Output Y = Y D + Y L (excluding credit default risk premium r P and term premium r T ) The results are compared to estimates based on the currently proposed methodology (for the time being, only for deposit-taking institutions)

New FISIM estimates Both approaches show lower FISIM than the currently proposed methodology The adjustments account on the average –for 24% (approach 1) (excluding term premium r T ); and –for 43% (approach II) (excluding credit default risk premium r P and term premium r T ) of the estimates based on the currently proposed methodology The variability of the estimated margins is much lower than under the current methodology

Way forward The CMFB agreed that the current method as reflected in the international statistical standards offers room for improvement A Task Force on FISIM will be launched in the EU in July 2009 and will report to the CMFB in early 2012 This means that a proposed solution can be implemented with the new ESA in 2014 The Task Force will address conceptual and practical aspects related to FISIM Furthermore, a workshop is planned for end-March 2009 allowing to already share national practices in preparation for the Task Force