1.2. The compilation methods of financial accounts
1.2.4. Products of financial accounts
A quarterly publication is published with data on financial accounts on the home page of the MNB, in the form of Excel tables. The central bank simul-taneously supplies data to Eurostat and the European Central Bank on the detailed financial accounts and debt of general government and the
consolidated accounts of all sectors. On two occa-sions each year, at the end of February and August, data supported with financial accounts are presented on general government debt and the financing of general government in the frame-work of the EDP Notification. In addition to the above, the MNB satisfies the data demand of other international organizations such as the IMF, OECD and BIS.
Data of financial accounts is generally presented in two ways: in the form of tables and time series.
The comprehensive tables (see Table 1-4) indi-cate stocks (balance sheet) and the components of flows in relation to a specific time or period (quarter, year), with the listing of all sectors and instruments. The comprehensive tables are most appropriate for revealing relationships between the sectors and the study of the role and distribu-tion of different financial instruments in the total economy. In the time series tables (see Table 1-5), the time axis runs along the sectors or along the breakdown of the instruments, enabling in a single table the analysis of the distribution of an instru-ment through sectors in time. For the purpose of analyzing the trends, this form of display offers the advantage of a single table presenting the full period covered by financial accounts.
In the various products, the total financial assets of the economy or a particular sector are broken down into eight groups of assets, and these are subdivided into a total of 18 categories of instru-ments. The liabilities are composed of seven groups which include 17 instruments. The Monetary gold and SDR instruments are missing on the liabilities side because these do not repre-sent the debt of anyone. Net financial worth corre-sponds to the difference between total financial assets and total liabilities. If not stocks but flows are indicated, the table reveals periodical changes in financial assets and liabilities and in
Methodology
Table 1-4
A sample of the comprehensive tables with sector and instrument breakdown
Financial assets
Net financial worth
billion HUF
the net financial worth. The transaction component of flows is most frequently presented. Such data indicate the transactions of financial assets and liabilities, their balancing item corresponds to the change in net financial worth due to transactions, otherwise termed as net lending (positive figure)
or the net borrowing requirement (negative figure).
The comprehensive table, or time series table, indicating counterpart sectors, is one of the most complex types of table. It is evident that even with a listing of main counterpart sectors, the breakdown of instruments must be limited for the purpose of
Non- Central Other Other Financial Insurance cor- Central Social Local Households NPISH Rest of the financial bank monetary financial auxiliaries porations and government security government world corporations (MNB) institutions intermediaries pension funds funds
Monetary gold and SDRs Currency Transferable deposits Other deposits Short-term securities Long-term securities Short-term loans Long-term loans Quoted shares Unquoted shares Other equity Mutual funds shares Life insurance reserves Pension funds reserves Non-life insurance reserves Financial derivatives Trade credits and advances Other Liabilities Currency Transferable deposits Other deposits Short-term securities Long-term securities Short-term loans Long-term loans Quoted shares Unquoted shares Other equity Mutual funds shares Life insurance reserves Pension funds reserves Non-life insurance reserves Financial derivatives Trade credits and advances Other
Sectors Instruments
creating a table with an understandable format. In place of partner sectors, for example, the denomi-nation based breakdown of instruments can be indicated (HUF/FX).
A comprehensive table is quite effective in reveal-ing the connections between stock and flow data, if it covers a period (quarter or year) which pres-ents the opening stocks, the componpres-ents of the changes in stocks and the closing stocks (see Table 1-6). Such a table helps in illustrating how in the examined period, the financial worth of a given sector changes for any reason (transaction,
reval-uation, other changes in volume), presenting the size of such change (full change in stocks) and starting and closing level of stocks (opening and closing stocks). The components of changes in stocks may be expanded with the presentation of operational indicators.
The transaction matrix, indicating the net lend-ing/net borrowing relationship between sectors, has the simplest structure, but is the most difficult to set up. This product illustrates how the net lend-ing/net borrowing requirement of individual sectors derives from the relationship to the other sectors;
Period (quarter) 1990. … … 2002. 2002. 2002. 2002. 2003. … … …
Instruments Q1 Q1 Q2 Q3 Q4 Q1
MMonetary gold and SDRs
Monetary gold and SDRs Currency
Deposits Central bank Other monetary institutions Securities other than shares
Non-financial corporations Financial corporations General government Rest of the world Loans
Non-financial corporations Households
Rest of the world Shares and other equities Insurance technical reserves Financial derivatives Other accounts receivable Currency
Deposits
Securities other than shares Domestic sectors Rest of the world Loans
Central bank
Other monetary institutions Other domestic sectors Rest of the world Shares and other equities
Corporations Rest of the world Insurance technical reserves Financial derivatives Other accounts payable
Corporations
Nettó finanszírozási képesség
Table 1-5
Time series with instrument and partner sector breakdown (referring to one sector)
Liabilities
Net lending/net borrowing Financial assets
billion HUF
Methodology
Net financial worth
Composition
Stocks (end of period) Changes in stocks Of which:
Instruments Dec. 2003 Dec. 2004 transactions revaluations other changes in volume
Monetary gold and SDRs Currency
Deposits Central bank
Other monetary institutions Securities other than shares
Non-financial corporations Financial corporations General government Rest of the world Loans
Non-financial corporations Households
Rest of the world Shares and other equities Insurance technical reserves Financial derivatives Other accounts receivable
Currency Deposits
Securities other than shares Domestic sectors Rest of the world Loans
Central bank
Other monetary institutions Other domestic sectors Rest of the world Shares and other equities
Corporations Rest of the world Insurance technical reserves Financial derivatives Other accounts payable
Corporations
Table 1-6
Financial worth and components of changes in financial worth (referring to one sector)
Financial assets
Liabilities
billion HUF
specifying which other sectors financed the given sector, and which other sectors were financed by the latter in the examined period. The above state-ment may only be produced if the breakdown of the assets and liabilities of individual sectors are available on the basis of counterpart sectors, on the level of instruments (see Table 1-7).
The net lending/net borrowing relationship is also
well revealed if changes arising in net financial worth from transactions are examined per instru-ment (see Table 1-8). In this case, the relationship between the sectors may also be deduced from the net transactions of instruments, in the absence of information on counterpart sectors. The above allows us to establish the relationship of specific instruments, or transactions, to particular sectors.
Table 1-7
Net lending/net borrowing of sectors by partner sector breakdown (sample table)
Non-financial Financial General Households NPISH Rest of the
corporations corporations world
Non-financial 0 20 150 50 0 100
corporations
Financial –20 0 –600 100 10 500
corporations
General –150 600 0 260 –10 500
government
Households –50 –100 –260 0 –5 0
NPISH 0 –10 10 5 0 –5
Rest of the world –100 –500 –500 0 5 0
Total –320 10 –1200 115 0 1095
billion HUF
Partner sectors Sectors
Table 1-8
Net lending/net borrowing of sectors by instrument breakdown (sample table)
Non-financial Financial General Households NPISH Rest of the
corporations corporations world
Monetary gold 0 10 0 0 0 0
and SDRs
Currency and 300 –700 100 390 10 –100
deposits Securities other
than shares 0 500 –800 0 0 300
Loans –730 500 100 –160 –10 300
Shares and –10 –10 –100 10 0 110
other equities
Insurance 100 –300 0 200 0 0
technical reserves Financial
derivatives 0 10 0 0 0 –10
Other accounts
receivable 20 0 0 0 0 –20
Net lending/ –320 10 –700 440 0 580
net borrowing
billion HUF
Instruments Sectors