BALANCE SHEET ITEMS

Euro area

MFIs

A.  Domestic

B.  Euro area other than domestic

MFIs

Non-MFIs

MFIs

Non-MFIs

General government (S.13)

Other resident sectors

General government (S.13)

Other resident sectors

Central Government (S.1311)

Other general government

Total

Non-MMF investment funds (S.124)

Other financial intermediaries + financial auxiliaries + captive financial institutions and money lenders (S.125+S.126+S.127)

Insurance corporations (S.128)

Pension funds (S.129)

Non-financial corporations (S.11)

Households + non-profit institutions serving households (S.14+S.15)

Central Government (S.1311)

Other general government

Total

Non-MMF investment funds (S.124)

Other financial intermediaries + financial auxiliaries + captive financial institutions and money lenders (S.125+S.126+S.127)

Insurance corporations (S.128)

Pension funds (S.129)

Non-financial corporations (S.11)

Households + non-profit institutions serving households (S.14+S.15)

ASSETS

1  Cash

1e  of which: euro

2  Loans

up to 1 year

over 1 year and up to 5 years

over 5 years

3  Debt securities held

3e  Euro

up to 1 year

over 1 and up to 2 years

3x  Foreign currencies

up to 1 year

over 1 and up to 2 years

4  MMF shares/units

LIABILITIES

5  Deposits

5e  Euro

5.1e  Overnight

5.2e  With agreed maturity

up to 1 year

over 1 and up to 2 years

5.3e  Redeemable at notice

up to 3 months (1)

5.4e  Repos

5x  Foreign currencies

5.1x  Overnight

5.2x  With agreed maturity

up to 1 year

over 1 and up to 2 years

5.3x  Redeemable at notice

up to 3 months (1)

5.4x  Repos

Sector

Definition

MFIs

MFIs as defined in Article 1 of Regulation (EU) No 1071/2013 (ECB/2013/33). This sector consists of national central banks (NCBs), credit institutions as defined in Union law, MMFs, other financial institutions whose business is to receive deposits and/or close substitutes for deposits from entities other than MFIs and, for their own account, at least in economic terms, to grant loans and/or make investments in securities, and electronic money institutions that are principally engaged in financial intermediation in the form of issuing electronic money

General government

The general government sector (S.13) consists of institutional units which are non-market producers whose output is intended for individual and collective consumption, and are financed by compulsory payments made by units belonging to other sectors, and institutional units principally engaged in the redistribution of national income and wealth (ESA 2010, paragraphs 2.111 to 2.113)

Central government

This subsector (S.1311) includes all administrative departments of the State and other central agencies whose competence extends normally over the whole economic territory, except for the administration of social security funds (ESA 2010, paragraph 2.114)

State government

This subsector (S.1312) consists of those types of public administration which are separate institutional units exercising some of the functions of government, except for the administration of social security funds, at a level below that of central government and above that of the governmental institutional units existing at local level (ESA 2010, paragraph 2.115)

Local government

This subsector (S.1313) includes those types of public administration whose competence extends to only a local part of the economic territory, apart from local agencies of social security funds (ESA 2010, paragraph 2.116)

Social security funds

The social security funds subsector (S.1314) includes central, state and local institutional units whose principal activity is to provide social benefits and which fulfil each of the following two criteria: (a) by law or by regulation certain groups of the population are obliged to participate in the scheme or to pay contributions; and (b) general government is responsible for the management of the institution in respect of the settlement or approval of the contributions and benefits independently from its role as supervisory body or employer (ESA 2010, paragraph 2.117)

Non-MMF investment funds

IFs as defined in Article 1 of Regulation (EU) No 1073/2013 (ECB/2013/38) concerning statistics on the assets and liabilities of investment funds. This subsector consists of all collective investment undertakings, except MMFs, that invest in financial and/or non-financial assets, to the extent that the objective is investing capital raised from the public

Other financial intermediaries, except insurance corporations and pension funds + financial auxiliaries + captive financial institutions and money lenders

The other financial intermediaries, except insurance corporations and pension funds subsector (S.125) consists of all financial corporations and quasi-corporations which are principally engaged in financial intermediation by incurring liabilities in forms other than currency, deposits (or close substitutes for deposits), investment fund shares/units, or in relation to insurance, pension and standardised guarantee schemes from institutional units (ESA 2010, paragraphs 2.86 to 2.94)

The financial auxiliaries subsector (S.126) consists of all financial corporations and quasi-corporations which are principally engaged in activities closely related to financial intermediation but which are not financial intermediaries themselves. This subsector also includes head offices whose subsidiaries are all or mostly financial corporations (ESA 2010, paragraphs 2.95 to 2.97)

The captive financial institutions and money lenders subsector (S.127) consists of all financial corporations and quasi-corporations which are neither engaged in financial intermediation nor in providing financial auxiliary services, and where most of either their assets or their liabilities are not transacted on open markets. This subsector includes holding companies that hold controlling-levels of equity of a group of subsidiary corporations and whose principal activity is owning the group without providing any other service to the businesses in which the equity is held, that is, they do not administer or manage other units (ESA 2010, paragraphs 2.98 to 2.99)

Insurance corporations

The insurance corporations subsector (S. 128) consists of all financial corporations and quasi-corporations which are principally engaged in financial intermediation as a consequence of the pooling of risks mainly in the form of direct insurance or reinsurance (ESA 2010, paragraphs 2.100 to 2.104)

Pension funds

The pension funds subsector (S. 129) consists of all financial corporations and quasi-corporations which are principally engaged in financial intermediation as the consequence of the pooling of social risks and needs of the insured persons (social insurance). Pension funds as social insurance schemes provide income in retirement, and often benefits for death and disability (ESA 2010, paragraphs 2.105 to 2.110)

Non-financial corporations

The non-financial corporations sector (S.11) consists of institutional units which are independent legal entities and market producers, and whose principal activity is production of goods and non-financial services. This sector also includes non-financial quasi-corporations (ESA 2010, paragraphs 2.45 to 2.54)

Households + non-profit institutions serving households

The households sector (S.14) consists of individuals or groups of individuals as consumers and as entrepreneurs producing market goods and non-financial and financial services (market producers) provided that the production of goods and services is not by separate entities treated as quasi-corporations. It also includes individuals or groups of individuals as producers of goods and non-financial services for exclusively own final use. The household sector includes sole proprietorships and partnerships without independent legal status, other than those treated as quasi-corporations, which are market producers (ESA 2010, paragraphs 2.118 to 2.128)

The non-profit institutions serving households (NPISHs) sector (S.15) consists of non-profit institutions which are separate legal entities, which serve households and are private non-market producers. Their principal resources are voluntary contributions in cash or in kind from households in their capacity as consumers, from payments made by general governments and from property income (ESA 2010, paragraphs 2.129 to 2.130)

Category

Description of main features

1.  Cash

Holdings of euro and foreign banknotes and coins in circulation that are commonly used to make payments

2.  Loans

Holdings of financial assets created when creditors lend funds to debtors, which are either not evidenced by documents or are evidenced by non-negotiable documents. This item also includes assets in the form of deposits placed by reporting agents.

This item includes:

(a)  deposits, as defined under liability category 5;

(b)  bad loans that have not yet been repaid or written off;

The total amount of loans in respect of which repayment is overdue or otherwise identified as being impaired, partially or totally, in accordance with the definition of default in Article 178 of Regulation (EU) No 575/2013;

(c)  holdings of non-negotiable securities

Holdings of debt securities which are not negotiable and cannot be traded on secondary markets;

(d)  traded loans

Loans that have de facto become negotiable are to be classified under the asset item ‘loans’ provided that there is no evidence of secondary market trading. Otherwise they should be classified as debt securities (category 3);

(e)  subordinated debt in the form of deposits or loans

Subordinated debt instruments provide a subsidiary claim on the issuing institution that can only be exercised after all claims with a higher status (e.g. deposits/loans) have been satisfied, giving them some of the characteristics of equity. For statistical purposes, subordinated debt is to be treated as either ‘loans’ or ‘debt securities’ according to the nature of the financial instrument. Where POGI holdings of all forms of subordinated debt are currently identified as a single figure for statistical purposes, this figure is to be classified under the asset item ‘debt securities’, on the grounds that subordinated debt is predominately constituted in the form of securities, rather than as loans;

(f)  claims under reverse repos or securities borrowing against cash collateral

Counterpart of cash paid out in exchange for securities purchased by reporting agents at a given price under a firm commitment to resell the same or similar securities at fixed price on a specified future date, or securities borrowing against cash collateral.

The following item is not treated as a loan:

3.  Debt securities

Holdings of debt securities, which are negotiable financial instruments serving as evidence of debt, are usually traded on secondary markets or can be offset on the market, and which do not grant the holder any ownership rights over the issuing institution.

This item includes:

(a)  holdings of securities which give the holder the unconditional right to a fixed or contractually determined income in the form of coupon payments and/or a stated fixed sum at a specific date or dates, or starting from a date defined at the time of issue;

(b)  loans that have become negotiable on an organised market, i.e. traded loans, provided that there is evidence of secondary market trading, including the existence of market makers, and frequent quotation of the financial asset, such as provided by bid-offer spreads. Where this is not the case they should be classified under the asset item ‘loans’ (see also ‘traded loans’ in category 2d);

(c)  subordinated debt in the form of debt securities (see also ‘subordinated debt in the form of deposits or loans’ in category 2e).

Securities lent out under securities lending operations or sold under a repurchase agreement remain on the original owner’s balance sheet (and are not to be recorded on the balance sheet of the temporary acquirer) where there is a firm commitment to reverse the operation, and not simply an option to do so. Where the temporary acquirer sells the securities received, this sale must be recorded as an outright transaction in securities and entered in the balance sheet of the temporary acquirer as a negative position in the securities portfolio

3a/3b  Debt securities of up to and including one year/of over one year and up to and including two years’ original maturity

These items include:

(a)  holdings of negotiable debt securities of original maturity of up to and including one year/of over one year and up to and including two years;

(b)  loans that have become negotiable on an organised market, i.e. traded loans that are classified as debt securities, of original maturity of up to and including one year/of over one year and up to and including two years;

(c)  subordinated debt in the form of debt securities of original maturity of up to and including one year/of over one year and up to and including two years.

4.  Money market fund shares/units

This asset item includes holdings of MMF shares/units (see definition in Regulation (EU) No 1071/2013 (ECB/2013/33) Annex I, Part 1, Section 2)

Category

Description of main features

5.  Deposits

Amounts (deposits or other), which are owed to creditors by reporting agents and which comply with the features described in Section 1 of Part 1 of Annex I to Regulation (EU) No 1071/2013 (ECB/2013/33). For the purposes of the reporting scheme, this category is broken down into overnight deposits, deposits with agreed maturity and deposits redeemable at notice

(a)  deposits and loans

‘Deposits’ also cover ‘loans’ as liabilities of POGIs. In conceptual terms, loans represent amounts received by POGIs that are not structured in the form of ‘deposits’. The ESA 2010 distinguishes between ‘loans’ and ‘deposits’ on the basis of the party that takes the initiative, i.e. if this is the borrower, then it constitutes a loan, but if this is the lender, then it constitutes a deposit. Within the reporting scheme, ‘loans’ are not recognised as a separate category on the liabilities side of the balance sheet. Instead, balances that are considered as ‘loans’ are to be classified indistinguishably under the item ‘deposit liabilities’, unless they are represented by negotiable instruments. This is in line with the definition of ‘deposit liabilities’ above. Loans to POGIs that are classified as ‘deposit liabilities’ are to be broken down in accordance with the requirements of the reporting scheme, i.e. by sector, instrument, currency and maturity. Syndicated loans received by reporting agents fall under this category.

(b)  non-negotiable debt instruments

Non-negotiable debt instruments issued by reporting agents are generally to be classified as ‘deposit liabilities’. Non-negotiable instruments issued by reporting agents that subsequently become negotiable and that can be traded on secondary markets should be reclassified as ‘debt securities’.

(c)  margin deposits

Margin deposits (margins) made under derivative contracts should be classified as ‘deposit liabilities’ where they represent cash collateral deposited with POGIs and where they remain in the ownership of the depositor and are repayable to the depositor when the contract is closed out. In principle, margins received by the reporting agent should only be classified as ‘deposit liabilities’ to the extent that the POGI is provided with funds that are freely available for on-lending; where a part of the margin received by the POGI has to be passed to another derivatives market participant, e.g. the clearing house, only that part which remains at the disposal of the POGI should in principle be classified as ‘deposit liabilities’. The complexities of current market practice may make it difficult to identify those margins that are truly repayable, because different types of margin are placed indistinguishably within the same account, or those margins that provide the POGI with resources for on lending. In these cases, it is acceptable to classify these margins under ‘remaining liabilities’ or as ‘deposit liabilities’.

(d)  earmarked balances

According to national practice ‘earmarked balances’ related to e.g. leasing contracts are classified as deposit liabilities under ‘deposits with agreed maturity’ or ‘deposits redeemable at notice’ depending on the maturity/provisions of the underlying contract.

The following item is not treated as a deposit:

Funds (deposits) received on a trust basis are not recorded on the POGI statistical balance sheet (see ‘Loans granted on a trust basis’ under category 2)

5.1  Overnight deposits

Deposits which are convertible into currency and/or which are transferable on demand by cheque, banker’s order, debit entry or similar means, without significant delay, restriction or penalty. This item includes:

(a)  balances (interest-bearing or not) which are immediately convertible into currency on demand or by close of business on the day following that on which the demand was made, without any significant penalty or restriction, but which are not transferable;

(b)  balances (interest-bearing or not) representing prepaid amounts in the context of ‘hardware-based’ or ‘software-based’ e-money, e.g. prepaid cards;

(c)  loans to be repaid by close of business on the day following that on which the loan was granted.

5.2  Deposits with agreed maturity

Non-transferable deposits which cannot be converted into currency before an agreed fixed term or that can only be converted into currency before that agreed term provided that the holder is charged some kind of penalty. This item also includes administratively regulated savings deposits where the maturity related criterion is not relevant; these should be classified in the maturity band ‘over two years’. Financial products with roll-over provisions must be classified according to the earliest maturity. Although deposits with agreed maturity may feature the possibility of earlier redemption after prior notification, or may be redeemable on demand subject to certain penalties, these features are not considered to be relevant for classification purposes

5.2a/5.2b  Deposits of up to and including one year/of over one year and up to and including two years’ agreed maturity

These items include for each maturity breakdown:

(a)  Balances placed with a fixed term to maturity of up to and including one year/of over one year and up to and including two years that are non-transferable and cannot be converted into currency before that maturity;

(b)  Balances placed with a fixed term to maturity of up to and including one year/of over one year and up to and including two years that are non-transferable but can be redeemed before that term after prior notification; where notification has been given, these balances should be classified in 5.3a;

(c)  Balances placed with a fixed term to maturity of up to and including one year/of over one year and up to and including two years that are non-transferable but can be redeemed on demand subject to certain penalties;

(d)  Margin payments made under derivative contracts to be closed out within one year/between one and two years, representing cash collateral placed to protect against credit risk but remaining in the ownership of the depositor and being repayable to the depositor when the contract is closed out;

(e)  Loans, which are either evidenced by non-negotiable documents or not evidenced by documents, of up to and including one year/of over one year and up to and including two years original maturity;

(f)  Non-negotiable debt securities issued by POGIs of original maturity of up to and including one year/of over one year and up to and including two years;

(g)  Subordinated debt issued by POGIs in the form of deposits or loans of original maturity of up to and including one year/over one year and up to and including two years.

5.3.  Deposits redeemable at notice

Non-transferable deposits without any agreed maturity which cannot be converted into currency without a period of prior notice; before the expiry the conversion into currency is not possible or possible only with a penalty. They include deposits which, although perhaps legally withdrawable on demand, would be subject to penalties and restrictions according to national practice (classified in the maturity band ‘up to and including three months’), and investment accounts without period of notice or agreed maturity, but which contain restrictive drawing provisions (classified in the maturity band ‘over three months’)

5.3a  Deposits redeemable at up to and including three months’ notice

This item includes:

(a)  Balances placed without a fixed maturity that can be withdrawn only subject to a prior notice of up to and including three months; if redemption prior to that notice period (or even on demand) is possible, it involves the payment of a penalty; and

(b)  Balances placed with a fixed term to maturity that are non-transferable but that have been subject to a notification of less than three months, for an earlier redemption.

In addition, deposits redeemable at up to and including three months’ notice include non-transferable sight savings deposits and other types of retail deposits which, although legally redeemable on demand, are subject to significant penalties

Regulation (EC) No 1027/2006 (ECB/2006/8)

This Regulation

Articles 1-3

Articles 1-3

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Article 4

Article 4

Article 5

Article 5

Article 6

Article 6

Article 7

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Article 8

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Article 9

Article 7

Article 10

Annex I

Annex I