1. FISIM in the EU
Brian Newson
Eurostat

2. History SNA93 offers option: allocate or not.
ESA95 compulsory, required no allocation,
but Task force began immediately to define methods.

3. Methods tested 1. interest receivable on loans between OMI + OFI
stocks of loans between OMI + OFI
2. Method 1 plus interest on securities
3. Short-term as 1 and long-term published rates
4a. Average lending and borrowing rates FI versus other sectors
4b. Average 1 and 4a
4c. Average 2 and 4a

4. Results of test period FISIM can be reasonably allocated
Beyond a certain point sophistication of methods not worthwhile.
average increase of GDP 1,3 %
negative FISIM ?
occasionally (“sticky” rates)
structurally (cross-subsidisation)

5. Method adopted (1) Reference rates derived from data
interest receivable on loans between OMI + OFI
stocks of loans between OMI + OFI
allocate on loans and deposits of FI because the FI only control those.
Requires data to separate:
households final/intermediate consumption,
transactions non-residents (X,M)

6. Method adopted (2) Central Bank output Industry breakdown
sum of costs, because normal method enormous
Industry breakdown
allocation based on stocks of loans + deposits for each industry, otherwise output.
Constant prices
base year margin x (stocks loans + deposits)/Ip

7. Implementation
In 2005 all 25 EU Member States must supply NA with FISIM allocated
back data to 1995.