Financial Accounts of the Spanish Economy 1 Introduction National Accounts

METHODOLOGICAL SUMMARY
1
The Financial Accounts of the Spanish Economy form part of the Spanish system of
Introduction
National Accounts1 and are the statistical basis for the financial analyses of the economy,
including those contained in the Banco de España’s Annual Report and in its quarterly
reports on the Spanish economy, published in the Economic Bulletin in January, April, July
and October. This publication, which is released at the same time as the Annual Report,
contains the financial accounts for the period 2006-2013 in Chapter 2. It also includes a
Chapter 1 with the non-financial national accounts and a Chapter 3 with a set of
supplementary national and international statistics.
The new Regulation (EU) No 549/2013 of 21 May 2013 on the European system of national
and regional accounts in the European Union revises the methodology of national accounts
and other macroeconomic statistics. This new methodology will come into force on 1
September 2014 under the name of the ESA 2010, replacing the previous methodology,
known as the ESA 95. This edition of the Financial Accounts and the next quarterly update
on the internet with data until 2014 Q1 will be the last ones to be compiled in accordance
with the ESA 95 methodology which is currently in force. As of the October update of this
year, with data until 2014 Q2, the Financial Accounts will be prepared following the new
ESA 2010 methodology. Section 5 indicates the main changes arising from the revision of
the methodology of reference.
Chapter 1 is a summary of the Spanish National Accounts (SNA) or non-financial accounts
of the economy, compiled by the National Statistics Office (INE), relating to the
macroeconomic setting and to the accounts of the different sectors and sub-sectors,
providing a means whereby the operations to be financed can be related to their financial
counterparts, which are covered in Chapter 2. The basic source for the data included in
Chapter 1 are the INE publications Contabilidad Nacional de España. Base 2008. Serie
Contable 1995-2013 y Cuadros Contables 2000-2013, Cuentas Trimestrales no Financieras
de los Sectores Institucionales. Base 2008 (quarterly series for 2000 Q1 - 2013 Q4) and
Contabilidad Nacional Trimestral de España. Base 2008 (quarterly series for 1995 Q1 2013 Q4). Where these sources do not offer all the details that feature in the accounts,
Banco de España estimates have been included, made drawing on information released
by the INE, the IGAE (National Audit Office) on general government, the National Securities
Market Commission (CNMV) and the Banco de España itself.
Chapter 3 completes and summarises statistics included in the monthly Boletín Estadístico
and in other publications of the Banco de España, the INE and other national and
international agencies quoted as the source of the tables. This information, combined with
that of the preceding chapters, makes this publication an annual of monetary, financial and
general economic statistics relating to both the Spanish economy and the international
sphere.
Up until the 2009 edition of the Financial Accounts, this publication included detailed
Methodological Notes with references to the main categories of the system and certain
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The National Statistics Plan currently in force relates to the period 2013-2016 (RDL 1658/2012). As in the case of
previous plans, this one includes the Financial Accounts of the Spanish Economy (statistical operation 5858),
which the Banco de España is responsible for compiling.
FINANCIAL ACCOUNTS OF THE SPANISH ECONOMY, 1980-2013
METHODOLOGICAL SUMMARY
aspects of the compilation procedure, as well as a very detailed set of schemes. From the
2010 edition, an expanded and more systematic version of these Methodological Notes is
available as an independent document at www.bde.es. This document will be updated
periodically when so warranted by the significance of the modifications included in the
accounts. Accordingly, the following sections of this Methodological Summary refer only
to certain matters that have been considered of most importance, to make it easier for
readers to consult the basic aspects of the accounts, which are explained in more detail in
the aforementioned Methodological Notes.
Following this introduction, the second section of this Summary summarises the main
features of the financial accounts; the third section outlines the main methodological
aspects (the classification of the institutional units and of the financial instruments of the
Spanish economy, and the main valuation methods used in the financial accounts); the
fourth section details the requirements of international organisations in relation to these
statistics; the fifth section describes the main modifications in the European System of
National Accounts (ESA), which is the framework for these statistics, as a result of the new
Regulation (EU) No 549/2013. Finally, Section 6 presents the implementation schedule for
the new methodology in the financial accounts compiled and published by the Banco de
España and for transmissions to international organisations.
The methodology used in compiling these accounts is that established by the European
2 Main features of the
Financial Accounts
System of National and Regional Accounts (ESA 95), contained in Council Regulation (EC)
No 2223/96 of 25 June 1996, which also governs the compilation of non-financial accounts.
One of the key features of this system is that, since it was enacted through a Regulation,
it is binding upon all European Union (EU) Member States, thereby ensuring that the
methodology used and the deadlines for data availability are the same in all countries.
Furthermore, the ESA 95 accounting system is also harmonised with the System of
National Accounts (SNA 93), drawn up under the aegis of the Statistical Office of the
United Nations, the World Bank, the OECD, the IMF and the European Commission
(Eurostat), and with the IMF Balance of Payments Manual (5th edition).2 Of particular
significance in the European context is the inclusion in the System of a specific sub-sector
within the sector Financial institutions, namely the sub-sector Monetary financial institutions
(MFIs), which is the grouping the European System of Central Banks (ESCB) defines as the
money creating sector, reinforcing the link between monetary and national accounts
statistics.
The ESA 95 includes a comprehensive system of accounts comprising financial balance sheets
and flow accounts, which explain the changes between the opening and closing balance
sheets of each period. In addition to encompassing financial transactions, the flow accounts
also address other changes in financial assets (and liabilities). The latter are made up, in turn,
of: a) accounts of changes in volume, which reflect changes in the amount of financial assets
and liabilities as a result of the appearance or disappearance thereof (e.g. loan write-downs/
write-offs and sectorisation changes); and b) revaluation accounts, which reflect changes in
the value of assets and liabilities as a result of changes in the prices thereof or in the exchange
rate of the currency in which they are denominated. Thus, the ESA 95 Accounts constitute an
integrated system in which, for each sector and sub-sector, the difference between financial
stocks or balance sheets at any two moments in time is explained by the three accounts
mentioned: financial transactions, revaluation and other changes in volume.
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In 2008, new versions of the SNA 93 (SNA 2008) and of the IMF Balance of Payments Manual (6th edition) were
approved. The new version of the ESA will be consistent with the new versions of these manuals.
FINANCIAL ACCOUNTS OF THE SPANISH ECONOMY, 1980-2013
METHODOLOGICAL SUMMARY
The application of the principles established in the ESA 95 to the Spanish institutional,
economic and financial reality, as well as the general outline of the compilation procedure
and the different sources of information used, are described in detail in the Methodological
Notes referred to in the previous section.
The Financial Accounts of the Spanish Economy, in relation to the various groupings, are
presented in a non-consolidated version in the tables of Sections 2.b), 2.d) and 2.e) (see
Contents). However, it is possible to prepare the consolidated accounts from the information in
Section 2.d), which includes, for the different sectors, the summary by instrument and
counterpart sector, including the counterpart vis-à-vis the sector itself; so that, by elimination of
the asset and liability positions within the sector itself, the consolidated accounts of each sector
may be obtained. Obviously, the consolidated account of the Spanish economy is equivalent to
presenting the rest of the world account from the standpoint of the resident sectors.
Regarding the periodicity of the Spanish financial accounts, and although the ESA 95
Regulation requires only annual series, the Banco de España has been releasing, from the
outset, quarterly series to meet user demand. An intensive legislative programme has
been conducted for years within the EU, aimed at increasing the periodicity of the National
Accounts and other key macroeconomic statistics, and also at reducing the lag in their
availability to a minimum, the objective being 90 calendar days in the case of the financial
accounts, which is somewhat shorter than the lag with which the Spanish financial
accounts are currently released.
Time series for the financial transactions and financial balance sheets of the Spanish
financial accounts are available with quarterly data for the period 1990-2013 and annual
data for the period 1980-1989. The revaluation and other changes in volume accounts are
disseminated for the years and quarters contained in the annual publication and its quarterly
updates. All the time series, both annual and quarterly, are methodologically homogeneous.
The Financial Accounts of the Spanish Economy are disseminated only in electronic form,
available at www.bde.es. This edition comes out half-way through each year, together with
the Bank’s Annual Report. Also, the information is updated quarterly with a lag of
approximately 110 calendar days with respect to the last quarter included in the series.
These updates are preceded by a brief note describing the changes introduced. The edition
that is released with the Annual Report updates, until the cut-off date indicated in the
publication, the series disseminated in April so that the same data used for preparing this
Report are available to external users. The tables in PDF format include the last eight quarters
and the last eight years in the series, although the complete period for the time series can be
obtained from the Time Series Search Engine (BIEST)3 and also in CSV4 files. The specific
dates of the updates of the accounts appear in a release calendar for the publication and for
other Banco de España statistics that may be consulted at www.bde.es.
The experience acquired since these accounts were first published on the basis of the ESA 95
in 2000 has made it possible to establish a revision policy which, while ensuring that the
modifications that occur (that generally affect the most recent quarters to a greater extent)
are incorporated, gives the published series a degree of stability. Thus, when the accounts
for each quarter are updated, at most the accounts of the eight preceding quarters and
their corresponding years are revised. This regular revision procedure does not rule out
3
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BIEST may be accessed at http://app.bde.es/bie_www/faces/bie_wwwias/jsp/op/Home/pHome.jsp.
CSV stands for “comma separate values”.
FINANCIAL ACCOUNTS OF THE SPANISH ECONOMY, 1980-2013
METHODOLOGICAL SUMMARY
exceptional revisions when the circumstances warrant (owing to conceptual changes, new
source information, extension of the time series and the like).
3
This section briefly sets out some methodological aspects of the financial accounts relating
Summary of the
classification criteria
and valuation methods
to the delimitation of institutional groupings, the classification of financial instruments and
the valuation methods used, as part of the System of National Accounts.
In the financial accounts, as in the non-financial accounts, the institutional units are
classified into institutional sectors and sub-sectors on the basis of their economic function.
Specifically, the following institutional sectors are distinguished: non-financial corporations,
which produce market non-financial goods and services; financial corporations, which
engage in financial intermediation; general government, whose main functions are the
production of “non-market” goods and services and the performance of transactions for
the redistribution of national income and wealth; households, in their two-fold function as
consumers and producers (sole proprietors); and, finally, non-profit institutions serving
households, which produce “non-market” goods and services and make them available to
households. Against this background, the legal entities existing in Spain are allocated to
one institutional sector/sub-sector or another, as detailed in Table 1.
For their part, the financial instruments included in the financial accounts are classified in
the financial asset categories according to their legal characteristics and their degree of
liquidity, as detailed in Table 2.
The ESA 95 establishes homogeneous valuation methods for the financial assets in
financial balance sheets and in transactions accounts, which are applicable in all
institutional sectors and to financial instruments both when they are financial assets and
when they are liabilities.5 As a result of this homogeneity the system of accounts has a high
degree of internal consistency, leaving aside particular compilation problems that may
exist. As a general principle financial assets are valued in the financial balance sheets at
current prices, which is either their nominal value or, in the case of instruments traded on
markets, their market value. At the same time, as a general rule, transactions with financial
assets are recorded at their transaction value, i.e. the value at which the specific
transactions have been carried out. The financial accounts reflect the balances of financial
assets and the corresponding transactions among the residents of the Spanish economy
and between the latter and residents of the rest of the world, as well as other financial
flows, which are changes in the value of the financial assets and liabilities that appear in
the balance sheets of the various agents that do not arise from transactions, such as
changes in asset prices (revaluations), accounting reclassifications, changes in the sector
in which institutional units are classified, etc. Table 3 shows how the main categories of the
system are valued following the general rules mentioned above. Finally, it should be noted
that the basic accounting information or administrative registers are not always strictly
compiled in accordance with the method mentioned, so that sometimes adjustments have
to be made to maintain the system’s consistency.
4
International organisations compile financial accounts data within their own sphere. In
Financial accounts
in the international
sphere
some cases, these organisations have formalised, by means of legally binding rules, the
information requirements that must be met by the national institutions responsible for
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All financial assets are liabilities from the standpoint of the issuer/debtor. Moreover, all liabilities are, by definition,
financial, while there are non-financial assets (the capital stock of the various sectors that are not reflected in the
financial accounts). The net financial assets (also called net financial wealth) of each institutional grouping
represent the difference between financial assets and liabilities.
FINANCIAL ACCOUNTS OF THE SPANISH ECONOMY, 1980-2013
METHODOLOGICAL SUMMARY
DELIMITATION OF THE INSTITUTIONAL SECTORS
S.11 Non-jnancial corporations
S.12 Financial corporations
S.13 General government
TABLE 1
Comprising: public limited companies, private limited companies, other
non-jnancial corporations that are separate legal entities and other
market-producer public bodies
S.121 Banco de España
The national central bank
S.122 Other monetary jnancial
institutions
Comprising: deposit institutions (commercial banks, savings banks and
credit co-operative banks), the Instituto de Crédito Ojcial, specialised
credit institutions, money market funds (MMFs) and electronic money
institutions
S.123 Other jnancial intermediaries,
except insurance corporations and
pension funds
Comprising: collective investment institutions (other than MMFs),
securities-dealer companies, jnancial vehicle corporations, venture
capital funds and companies, jnancial holding companies, issuers of
preference shares and Sareb
S.124 Financial auxiliaries
Comprising: deposit guarantee funds (until 2011), securities agencies,
mutual guarantee companies, appraisal companies, management
companies (of pension funds, mutual funds and portfolios), operators of
organised markets and companies performing settlement and market
clearing functions
S.125 Insurance corporations and
pension funds
Comprising: life and risk insurance corporations, non-projt insurance
institutions, the Consorcio de Compensación de Seguros and
autonomous pension funds
S.1311 Central government
Comprising: the State and its autonomous agencies, public corporations
that are non-market producers, the Fund for the Acquisition of Financial
Assets (FAAF), the Fund for the Orderly Restructuring of the Banking
Sector (FROB), the Electricity DejBit Amortisation Fund (FADE), the
Regional (Autonomous) Government Liquidity Fund (FLA), the Fund for
the Financing of Payments to Suppliers (FFPP) and, from 2012, the
Deposit Guarantee Fund (DGF)
S.1312 Regional (autonomous)
governments
Comprising: management institutions of the regional (autonomous)
governments and their autonomous agencies, including universities,
transferred social security and public corporations that are non-market
producers
S.1313 Local governments
Comprising: provincial, municipal, island, town and minor local
authorities and their groupings, autonomous agencies and public
corporations that are non-market producers
Comprising: the General Treasury and other management entities
(including mutual insurance companies covering occupational accidents
and diseases), the State Employment Public Service and the Wage
Guarantee Fund
S.1314 Social security funds
S.14 Households
Comprising: individuals and groups of individuals (families and other
groups) as consumers and as sole proprietors (jrms that are not legal
entities separate from their owners)
S.15 Non-projt institutions serving households
Comprising: non-projt institutions that provide services to households
and that are "non-market" producers, such as non-government
organisations, foundations, associations, religious entities, political
parties, trade unions, etc.
compiling such data or which are members of the organisation. Also, these international
organisations make available to users the data compiled for different countries with a
homogeneous format and with dissemination tools that make the information easier to
compare.
Regulation (EC) No 2223/96 on the European System of National and Regional Accounts,
besides being the main methodological reference in the area of financial accounts,
incorporates a Transmission Programme of national accounts data to Eurostat, the EU
body charged with compiling national statistics of EU interest and making them available
to users. In relation to the financial accounts, this Transmission Programme establishes
the obligation to send annual data for financial balance sheets and financial accounts of
the institutional sectors, consolidated and non-consolidated, with a lag of nine months.
However, Spain, like other countries, has been sending data with a significantly shorter
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FINANCIAL ACCOUNTS OF THE SPANISH ECONOMY, 1980-2013
METHODOLOGICAL SUMMARY
CLASSIFICATION OF FINANCIAL INSTRUMENTS
TABLE 2
Main jnancial instruments included
ESA 95 categories
1 Monetary gold and SDRs
1.1 Monetary gold
1.2 Special drawing rights (SDRs)
SDRs allocated and acquired from other central banks
2 Currency and deposits
2.1 Currency
Banknotes and coins. Including residents' holdings of euro issued by
Eurosystem NCBs other than the Banco de España
3 Securities other than
shares
4 Loans
2.2 Transferable deposits
Overnight deposits and savings deposits (in the latter case, since 2005)
2.9 Other deposits
Interbank deposits and funding received in securitisation transactions,
savings deposits (until 2005), time accounts, structured deposits, MFIs'
repos, special covered bonds and accounts held abroad. In addition, the
counterpart of the assets transferred and the positions vis-à-vis the ECB
and IMF are included
3.3.1 Short-term securities
Treasury bills. Commercial paper at up to one year issued by general
government, jnancial corporations and non-jnancial corporations
3.3.2 Long-term securities
Medium and long-term public debt. Commercial paper at more than one
year and bonds issued by jnancial corporations and non-jnancial
corporations and securities issued by non-residents that are held by
residents
3.4 Financial derivatives
Options, futures and similar instruments and (since 2005) swaps
4.1 Short-term loans
Loans from resident credit institutions to resident and non-resident sectors,
loans from non-residents to resident sectors and loans between nonjnancial sectors and from the latter to non-resident sectors. Non-MFIs'
repos and reverse repos of jnancial corporations vis-à-vis non-jnancial
sectors. Non-interbank transfers of private assets, general government
loans to public corporations, Development Fund loans, issues of nonmarketable securities and liabilities to the IMF
4.2 Long-term loans
5 Shares and other equity
6 Insurance technical
reserves
Gold of the Banco de España and of the Treasury
5.1.1 Quoted shares
Shares of jnancial and non-jnancial corporations (excluding investment
companies) quoted on domestic and foreign markets
5.1.2 Unquoted shares
Unquoted shares of jnancial and non-jnancial corporations
5.1.3 Other equity
Capital of companies and public bodies that do not have the legal status of
a sociedad anónima (public limited company), capital contributions to
branches (of non-residents in Spain and of residents in Spain abroad), nonresidents' real-estate investments, investments in the capital of international
organisations and contributions from deposit guarantee funds to the FROB
5.2.1 Mutual funds shares
Shares in capital-market and real-estate investment funds
5.2.2 Shares issued by investment
companies
Shares in capital-market and real-estate investment companies
6.1.1 Life insurance reserves
Technical life provisions of life and risk insurance
6.1.2 Pension fund reserves
Reserves and funds set aside for the payment of pensions by non-projt
insurance institutions and pension funds
6.2 Prepayments of insurance premiums Non-life technical provisions of life and risk insurance corporations and nonprojt insurance institutions. Including reinsurance
and reserves for outstanding claims
7 Other accounts
receivable/payable
7.1 Trade credits and advances
Client/supplier accounts and the like of non-jnancial corporations (and
counterpart sectors)
7.9 Other accounts receivable/payable,
excluding trade credits and advances
Diverse accounts receivable/payable, interest accrued on deposits/loans
and pending receipt/payment, outstanding transactions between jnancial
corporations and between general government bodies, outstanding taxes
and contributions
lag, of six months. In the case of Spain this shorter lag does not give rise to excessive
difficulties since the Spanish financial accounts are disseminated with a lag of less than
four months. The European Sector Accounts database6 contains the financial accounts
data (Tables 6 and 7 of the Transmission Programme) of the 27 EU countries.
In addition, Regulation (EC) No 501/2004 establishes the obligation on Member States to
compile quarterly non-financial and financial accounts for the General government sector,
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Available at http://epp.eurostat.ec.europa.eu/portal/page/portal/sector_accounts/data/database.
FINANCIAL ACCOUNTS OF THE SPANISH ECONOMY, 1980-2013
METHODOLOGICAL SUMMARY
VALUATION OF THE MAIN CATEGORIES OF THE SYSTEM
Financial balance sheet
TABLE 3
Financial transactions account
1 Monetary gold and SDRs
Market value
Amount of the transactions
2 Currency and deposits
Face value (currency) or nominal value
(deposits)
Difference between balances, excluding revaluations and
changes in volume
3 Securities other than shares
Market value
(including interest accrued during
the period)
Value of the transactions. The interest accrued less the
interest paid is treated as if it were reinvested in the
jnancial instrument
4 Loans
Principal of the debt
Difference between balances, excluding revaluations and
changes in volume
Market value
Value of the transactions
Book value of own funds
Net contributions of funds
6 Insurance technical reserves
Current value of future payment
commitments in accordance with the
technical provisions and funds set aside
Premiums and net contributions including the investment
income
7 Other accounts receivable/payable
Nominal value on the balance sheet
Difference between balances
5 Shares and other equity
5.11 Quoted shares
5.2 Mutual funds shares
5.3 Other equity
with a lag of 90 calendar days with respect to the last quarter of reference. The Government
finance statistics database7 contains the public finances data for the 27 EU countries.
The European Central Bank (ECB), meanwhile, has established obligations relating to
information on financial accounts by means of Guideline ECB/2007/13. This Guideline
obliges the euro area national central banks (NCBs) to submit quarterly financial accounts
to the ECB with a lag of 110 calendar days with respect to the last quarter included in the
accounts. There are certain differences between the quarterly data that the NCBs send to
the ECB and the annual data that are sent to Eurostat (apart from the different periodicity),
although they should be fully consistent.8 In general, although the quarterly data sent to
the ECB are somewhat less detailed than the Eurostat data as regards the institutional
sectors/sub-sectors and the categories of financial assets for which information is
presented, they incorporate the details of the counterpart sectors for the main categories
of financial assets, and distinguish, within the positions vis-à-vis the rest of the world,
between those that have euro area countries and those that have other countries as
counterpart, which enables the ECB to compile euro area accounts, consolidating the
positions of euro area countries. A significant portion of this information is disseminated in
the Euro area accounts section of the ECB’s Statistical data warehouse.9
Finally, it should be mentioned that the international financial crisis of the last few years
has given rise to intense work by international organisations to develop proposals to
improve the quality and content of the statistical information on balance sheets and
financial transactions of the economy. In this context, the IMF is leading two initiatives in
the area of statistics which, when they have been completed over the next few years, will
mean that financial accounts statistics will be disseminated more widely.
In the context of the G20, the member countries and observers of this group and the
pertinent international organisations prepared in 2009 the document known as the Data
7 Available at http://epp.eurostat.ec.europa.eu/portal/page/portal/government_finance_statistics/data/database.
8 This is true in the case of Spain, as there is only one procedure for compiling accounts, which is quarterly, but in some
countries that have two compilation procedures, one annual and the other quarterly, the consistency is not complete.
9 Available at http://www.ecb.int/stats/acc/html/index.en.html.
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FINANCIAL ACCOUNTS OF THE SPANISH ECONOMY, 1980-2013
METHODOLOGICAL SUMMARY
Gaps Initiative (DGI). This includes 20 recommendations on financial statistics which need
to be developed in order to achieve higher quality standards and greater detail than at
present. The recommendations comprise the quarterly compilation with a three-month lag
of balance sheets and sector accounts, with counterpart details. The ultimate aim of this
work is to improve the dissemination and accessibility of the statistics of the G-20 countries
and of other countries with large financial systems. In this connection the IMF hosts the
website for the Principal Global Indicators, compiling several macroeconomic statistics
that are available at the main international organisations and including a specific section
on the financial accounts of the main developed economies.10
As part of its Data Initiatives, the IMF has approved a second set of requirements on
Special Data Dissemination Standards (SDDS). This second level called SDDS Plus, is
much more stringent than the current requirements approved by the IMF in 1996 and
which Spain subscribed to in that year. The new SDDS Plus contain additional requirements
in nine categories. The countries adhering to this IMF initiative must comply from the
outset with the requirements in five categories and will have until the end of 2019 to comply
with the other requirements. With some exceptions, Spain is already in a situation to
comply with these requirements, which in the scope of financial accounts mean the
dissemination of the sector financial balance sheets with a maximum lag of four months, a
requirement that the Spanish financial accounts already meet.
5
Main changes
to the European
System of Accounts
On 1 September 2014 the new version of the European System of Accounts (ESA 2010),
which has recently been approved by Regulation (EU) No 549/2013, will come into force. In
the same way as the ESA 95 which is currently in force is compatible with the SNA 93, the
new version of the ESA 2010 is fully compatible with the recent version of the SNA (2008
SNA). The fact that the ESA 2010, like the ESA 95 is approved by means of legislation and
is, therefore, binding on all the countries that make up the European Union, means that its
guidelines and recommendations are more specific and less subject to interpretation by
compilers than 2008 SNA. Indeed, this greater precision of the ESA is necessary given its
use in certain EU administrative procedures. This section describes the main methodological
changes which will be introduced from September 2014 in the financial accounts as a
result of the revision of national accounts manuals, some of which have already been
mentioned in previous editions of this publication.
In addition to various changes in designation, the ESA 2010 incorporates a more detailed
breakdown, than the ESA 95, of sectors and financial instruments, to adapt them to the
financial innovation recorded in recent years. These new categories will be incorporated in
Tables 6 and 7 of the Transmission Programme of national accounts data to Eurostat.
However, given their novelty and the difficulty of constructing time series, their transmission
will in most cases be on a voluntary basis.
Table 4 includes the most significant changes in the denomination of the categories of
financial assets and the inclusion of new financial instruments in the ESA 2010. As for the
categories of financial assets, the content of heading 6. Insurance technical reserves (called
6. Insurance, pension and standardised guarantee schemes in the ESA 2010) is extended. In
addition to the current concepts, new financial instruments are included: (i) Provisions for calls
under standardised guarantees, (ii) Claims of pension funds on pension managers, and (iii)
Entitlements to non-pension benefits. In principle, these new concepts, which are of little
importance in Spain, will not be presented separately in the Spanish financial accounts.
10
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Available at http://www.principalglobalindicators.org/pages/default.aspx.
FINANCIAL ACCOUNTS OF THE SPANISH ECONOMY, 1980-2013
METHODOLOGICAL SUMMARY
CLASSIFICATION OF FINANCIAL ASSETS IN THE ESA 95 AND IN THE ESA 2010
SNA 1993 / ESA 1995
TABLE 4
SNA 2008/ ESA 2010
1
Monetary gold and SDRs
1
Monetary gold and SDRs
2
Currency and deposits
2
Currency and deposits
3
Securities other than shares
3.3
Securities other than shares, excluding jnancial derivatives
3
Debt securities
3.4
Financial derivatives
4
Loans
4
Loans
5
Shares and other equity
5
Equity and investment fund shares or units
5.1
Shares and other equity, excluding mutual fund shares
5.1
Equity
5.2
Mutual fund shares
5.2
Investment fund shares or units
6
Insurance technical reserves
6
Insurance, pension and standardised guarantee schemes
6.1.1
Life insurance reserves
6.2
Life insurance and annuity entitlements
6.3
Pension entitlements
6.1.2
Pension fund reserves
6.4
Claims of pension funds on pension managers
6.5
Entitlements to non-pension benejts
6.1
Non-life insurance technical reserves
6.6
Provisions for calls under standardised guarantees
7
Financial derivatives and employee stock options
6.2
7
Prepayments of insurance premiums and reserves
of outstanding claims
Other accounts receivable/payable
7.1
Financial derivatives
7.2
Employee stock options
8
Other accounts receivable/payable
Furthermore, in the ESA 2010 a new heading is created, 7. Financial derivatives and
employee stock options. That includes (i) Financial derivatives, which in the ESA 95 were
part of category 3. Securities other than shares, and, separately, (ii) Employee stock
options, which are of little importance in Spain. It is envisaged that in the FASE the two
concepts will be presented jointly in line with the compulsory requirements of international
organisations.
As regards sectors, the new version of the ESA widens the definition of financial
corporations to ensure that it covers all financial intermediation activities, and expands the
sub-sectoral breakdown (which includes nine sub-sectors in the ESA 2010, as opposed to
five in the ESA 95). Some of these sub-sectors arise from the division of previous ones,
such as money market funds (MMF) and non-MMF investment funds, which previously
formed part of other monetary financial institutions and other financial intermediaries,
respectively, and pension funds and insurance corporations, which were previously
presented jointly. A new sub-sector has been created, called Captive financial institutions
and money lenders. The assets and liabilities-side of the balance sheet of this sub-sector
comprises financial transactions which are not performed in open markets. These
institutions were classified in the ESA 95 in the sector Non-financial corporations. However,
the sending of separate information for this sub-sector to international organisations will
be voluntary.
In the new international rules on national accounts (SNA 2008 and ESA 2010) the traditional
concept of financial intermediation is replaced by that of the provision of financial services
as the main purpose of the entities included in this sector. In general terms, the
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BREAKDOWN OF THE FINANCIAL CORPORATIONS SECTOR IN THE ESA 95 AND THE ESA 2010
SNA 1993 / ESA 1995
SNA 2008 / ESA 2010
S.121
Central bank
S.121
Central bank
S.122
Other monetary jnancial institutions
S.122
Other monetary jnancial institutions (excluding money
market funds)
S.123
Other jnancial intermediaries
S.123
Money market funds
S.124
Non-MMF investment funds
S.125
Other jnancial intermediaries
S.126
Financial auxiliaries
Of which:
Financial holding companies
S.124
Financial auxiliaries
S.125
Insurance corporations and pension funds
TABLE 5
Of which:
Head ofkBDs of knancial corporations
S.127
Captive jnancial institutions and money lenders
Of which:
Holding companies
Special purpose entities (SPEs)
S.128
Insurance corporations
S.129
Pension funds
implementation of the new criteria involves the reclassification of certain entities from one
sub-sector of Financial corporations to another and the inclusion in this sector of the new
group of entities mentioned above. Table 5 below shows the breakdown of the sector
Financial corporations for the various versions of the manuals.
In particular, the new manuals address specifically head offices and holding companies,
including clear methodological distinctions between both types of entity and establishing
the sectorisation of the holding companies in the sub-sector Captive financial institutions.
The main difference between them is that the holding companies are mere holders of a
group of subsidiaries’ assets and do not provide other services to these companies, while
the head offices perform activities related to the supervision and management of the
companies (strategic and operational planning, operational control, etc.). In practice, this
will mean the transfer of some entities performing the activity of a holding company in the
Non-financial corporations sector to Financial corporations, with the subsequent impact
on the accounts of those sectors. The head offices will be classified in the same sector to
which most of their investees and the companies they control belong, with the result that
in the case of entities of a financial nature they will be classified under Financial corporations
in the Financial auxiliaries sub-sector (S.126).
Additionally, the ESA 2010 devotes particular attention to a new set of entities called
special purpose entities (SPEs), which have proliferated in recent years. Although it is
accepted that there is no common definition, some of the characteristics they may have
are described: they have practically no employees, no non-financial assets and have a
limited physical presence; sometimes they are no more than a shell company; they are
frequently used as instruments to raise capital or hold assets or liabilities without engaging
in productive activities on a significant scale; or their place of residence meets certain
favourable conditions offered by the country where they are located (financial, fiscal or
legal). Under the ESA and the SNA these entities, provided that they meet the requirements
of being an institutional unit, are classified mainly in the financial sector as Captive financial
institutions, for example, where their purpose is to raise funds on open markets to be used
by the parent or to own controlling levels of equity of a group of subsidiary corporations.
However, these manuals point out that SPEs established in a country different to the one
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FINANCIAL ACCOUNTS OF THE SPANISH ECONOMY, 1980-2013
METHODOLOGICAL SUMMARY
their parent belongs to should be considered as institutional units even if they do not have
autonomy of decision. For example, an SPE created for organisational or tax reasons by a
multinational non-financial corporation in a territory different to that of its parent will be
considered a captive financial institution.
Although the manuals’ definitions of these types of entities (head offices, holding companies
and special-purpose entities) are clear, their practical application is complicated, especially
if an attempt is made to differentiate between them on the basis of generally used criteria.
In order to implement the new national accounts manuals as homogeneously as possible
in various countries, country experts and experts of international organisations under the
aegis of the Inter Secretariat Working Group on National Accounts (ISWGNA) have
developed a series of practical criteria (balance sheet size and weight of financial assets,
number of employees and negligible production of market goods and services) so as to
prepare a list of this kind of entities. This new sectorisation will be shown, from June 2014,
in the Sectorisation database of the Spanish Economy published on the Banco de España’s
website.
As a result of the reclassification in the sector S.12 Financial corporations of entities which
were previously included in the ESA 95 in the sector S.11 Non-financial corporations, the
balance sheet of the former will increase in the ESA 2010 in relation to previous years by
approximately 12-18% of GDP. Most of this aggregate relates on the assets and the
liabilities side of the financial balance sheet to shares and other equity. However, the
reclassification of these entities will also reduce by around €20 billion to €30 billion
(depending on the year) the loans recorded on the liabilities side of non-financial
corporations, around 2% of the total.
6
From 1 September 2014 the financial accounts data sent to international organisations
Implementation
schedule of the ESA
2010 in the Spanish
financial accounts
must be in accordance with the ESA 2010. The first edition of the FASE to be compiled in
accordance with the new methodology will be the edition for the second quarter of 2014,
which will be distributed on the Banco de España’s website on 15 October 2014. From that
quarter, the FASE will be disseminated on approximately the 15th of the fourth month
following the last month of the quarter of reference, instead of on the 20th.
Both the new Transmission Programme of national accounts data to Eurostat, as regards
annual financial accounts, which is established by the new Regulation (EU) No 549/2013
and the new ECB requirements on quarterly financial accounts, which is provided for in
the new Guideline ECB/2013/24 on the statistical reporting requirements of the ECB in the
field of quarterly accounts, significantly increase the data to be sent mandatorily by all
the countries to these organisations. The deadlines for sending data to Eurostat remain the
same, but from 2014 certain breakdowns of Tables 6 and 7 on financial transactions and
financial balance sheet by sub-category of financial asset and by sub-sector become
compulsory instead of being voluntary. One change is that for the first time it is compulsory
to send information on other changes in volume and revaluations for institutional sectors.
Under the ECB’s new guideline, the period for reporting data by national central banks is
shortened from 110 calendar days to 100 days with respect to the end of the quarter, and
a small set of preliminary data must be reported within 85 calendar days. In addition to the
changes of adapting to the new ESA 2010 methodology, the guideline provides that data
on counterpart institutional sectors/subsectors must be reported for securities headings (asset
side), including positions in the euro area, from 2015. These new reporting requirements
will enable the ECB to compile complete financial accounts, with counterpart sector
information, for the euro area.
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