New financial sector delineation in ESA 2010: First assessment for the financial accounts in Austria Workshop on SNA 200

1. New financial sector delineation in ESA 2010: First assessment for the financial accounts in Austria Workshop on SNA 2008 / ESA 2010OECD - October 2011 Michael Andreasch (michael.andreasch@oenb.at)

2. Content • Sector classification according to ESA 1995 and ESA 2010 • Content of each sector • Classification in practice – possibilities and challengesdraft version (work in progress) • What have we achieved – and what not?Proposal for further steps

3. Central bank S.121 Central bank S.121 Other MFI S.122 Other MFI S.122 Money market funds S.123 Non-MMF S.124 Other financial intermediariesS.123 Other financial intermediaries S.125 Financial auxiliariesS.124 Financial Auxiliaries S.126 Captive Financial Institutions S.127 Insurance corporations and pensions fundsS.125 Insurance corporations S.128 Holdingcompanies, SPEs Pensions funds S.129 Non-financialcorporations S.11

4. Central bank S.121 Other MFI S.122 MMF S.123 • The classification will be made under the responsibility of the central bank in Austria.The ECB is providing a list of MFIs including MMFs. • Data on each sub-sector on a who-to-whom basis are available in Austria.

5. Non-MMF S.124 • Classification in Austria is based on national legislation:Funds registered in Austria according to the “Investment fund law” and “Real estate fund law”. • The classification will be made under the responsibility of the central bank in Austria. • Data on the sub-sector on a who-to-whom basis are available in Austria.

6. Other financial intermediariesS.125 Financial vehicle corporations engaged in securitisation transactions (FVC) Security and derivative dealers (SDD) Financial corporations „engaged in lending“ Financial leasing (FLC) Hire purchase and the provision of personal or commercial finance (HP) Factoring (FA) Specialised financial corporations Venture and development capital companies (VC) Export/import financing companies (EIF) Financial intermediaries vis as vis MFI only (FIM)

7. Other financial intermediaries S.125 • Classification in Austria is mainly based on national legislation according to the banking law (except for VC, EIF) and will be made under the shared responsibility of the central bank and the central statistics office in Austria. • Challenges: At present there is an unclear situation classifying “financial leasing” in Austria: different views how to classify entities included in “real estate leasing activities”(NACE 2008 classification) based on information derived from the company register (influenced by national tax legislation) and credit register (based on banking supervisory treatment and even IAS) • Data on FVC, SDD and FLC are available in Austria. Data on all other units are (partly) difficult to achieve and partly not important in Austria ?

8. Financial Auxiliaries S.126 Insurance/loan/securities broker, financial serviceconsultants Payment institutions Corporations providing stock exchange and insurance exchange as well as infrastructure for financial markets, arranging derivative/hedging instruments, manage the issue of guarantees, … Managers of pension funds, mutual funds, etc. Central supervisory authorities (separate units only) Head offices of financial corporationsclassification by convention according to ESA 2010based on NACE 2008 classification

9. Financial Auxiliaries S.126 • Classification in Austria is partly based on national legislation; for head-offices based on type of activity (NACE 2008: 70.100), equity holdings of daughter companies in the balance sheets, turnover, number of employees (at present: 47 out of 3377), but: • The classification will be made under the shared responsibility of the central bank and the central statistics office in Austria. • Data on payment institutions, managers of mutual/pensions funds are available on a quarterly basis. All other units are under consideration (annual balance sheet data, FDI data) ?

10. Captive Financial InstitutionsS.127 Trusts, estates, brass plate companies Special Purpose Entities (SPE)partly previously included in S.11,delineation to S.13 Sovereign Wealth Funds (if classified as S.12) Units providing financial services with own funds or fundsprovided by a sponsor Holding companies of financial and non-financialcorporationsbased on NACE 2008 classification

11. Captive Financial Institutions S.127 • There is nearly no legal legislation for these units; holdings are classified in line with NACE 2008 classification (NACE 2008: 64.200) • Challenge: Correct allocation of the type of economic acitivity(see S.126) • The classification will be made under the shared responsibility of the central bank and the central statistics office in Austria. • Data on holding companies, SPE with cross-border activities on an annual basis using balance sheet data, FDI data (counterpart data information under consideration) should be available.

12. Insurance corporations S.128 Pensions funds S.129 • Classification in Austria is based on national legislation:Insurance corporations and pension funds are defined by law The reporting of IC is based on “home country” principle.Open issues: Issuer of standardised guarantees (ICPF, Banks Gov.,..) ? Pension Manager ? • The classification will be made under the responsibility of financial market supervisory body (FMA). • Data on the sub-sectors (on a who-to-whom basis for assets only) are available in Austria. ?

13. What have we achieved up to now … • Comparison between ESA 1995 and 2010 on major changes in the sector delineation • Identification of important amended / new entities in the financial sector • First assessment for the financial account in Austria

16. … – and what not, next steps: • Coordinated work on the classification of head-offices, holding companies and leasing companies between NSI and Central bank with the aim of a harmonized list of entities • Investigation on amendments of reports to the Central bank improving reporting guidelines and exchange of information on (selected) individual entitiesChallenge: Distinction between head offices (if part of sector S.11) and holding companies in counterpart statistics (like banking statistics, ICPF statistics, security holdings statistics by custodians). • Work on the integration of balance sheet data as part of the regular compilation and • Investigations on the compilation of back-data