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Highlights of Enhanced Japan's Flow of Funds Accounts Based on 2008SNA

May 25, 2016
Financial Statistics Group
Economic Statistics Division
Research and Statistics Department

In light of an increased importance of statistics related to the nonbanking sector -- such as corporate pensions and investment trusts -- with the rapidly ageing of Japan's population and a trend shift "From Saving to Investment" promoted by the government and industries, the Bank of Japan has made substantial revisions to Japan's Flow of Funds Accounts for the first time since 1999. Highlights of the revisions are: (1) regarding corporate pensions, defined benefit schemes and defined contribution schemes are recorded separately as independent sectors, and the discounted present value of future benefits based on the actuarial calculation of pensions is recorded as pension entitlements and (2) regarding investment trusts, distributions from the principal are recorded not as income but as outflows of funds from investment trusts. As a result, issues of the balance between assets and liabilities of pension funds and distribution amounts from the principal of investment trusts are brought to the fore, allowing to capture financial surplus and deficits of households and private nonfinancial corporations in a more accurate fashion. This makes it possible for Japan's Flow of Funds Accounts to produce a more accurate picture of financial activities than those furnished by other advanced countries.

Notice

Bank of Japan Review is published by the Bank of Japan to explain recent economic and financial topics for a wide range of readers. This report, 2016-E-3, is a translation of the original Japanese version, 2016-J-8, published in May 2016.

If you have comments or questions, please contact Financial Statistics Group, Economic Statistics Division, Research and Statistics Department (E-mail:post.rsd5@boj.or.jp).