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Revision of a sectoral classification in the Flow of Funds Accounts and revision of the Flow of Funds Accounts

March 23, 2007
Bank of Japan
Research and Statistics Department

[Revision of a sectoral classification - elimination of "Noncollectively managed trusts" sector]

"Noncollectively managed trusts" sector has been eliminated as announced in "Revision of a sectoral classification in the Flow of Funds Accounts" on March 19, 2007.

[Revision of data]

Evaluation and calculation methods have been changed in some areas. As a result, quarterly data are retroactively revised from the end of fourth quarter of 1997 and annual data from the end of FY1979.

For the revised data, please refer to the Long-Term Time-Series Data.

[Major changes in this publication]

(Elimination of "Noncollectively managed trusts" sector)

The estimation methods for noncollectively managed money trusts have been changed by consolidating all with the original entities other than social security funds, pension funds etc. Specifically, at the beginning, the flow of investing activities among trust accounts (designated noncollectively invested money trusts, specified money trusts etc.) is researched. Then, trust beneficiary rights among the noncollectively managed money trust accounts are consolidated (offsetting trust beneficiary rights between assets and liabilities). After that, trust accounts' trust beneficiary rights (liabilities) are offset against investing entities' trust beneficiary rights (assets). Finally, investment assets of trust accounts are allocated among investing entities. The holding amounts by each investing entity on trust accounts and its allocation of investment assets have been estimated from the financial statements of each investing entity and characteristics of instruments etc.

("Trust beneficiary rights" of collectively managed trusts <asset and liability>)

For collectively managed trusts (trust accounts of jointly operated designated money trusts and loan trusts), assets and liabilities are netted out when a portion that is posted on both asset and liability sides in trust accounts of loan trusts (loan trust beneficiary certificates on trust accounts of loan trusts). The part of investment assets is posted on "Structured-financing instruments" (monetary claim trust beneficiary rights).

("Others" for domestically licensed banks)

The estimation methods for domestically licensed banks have been changed by adding the difference between (1) and (2) explained below to others (transaction flow) on asset sides (when (2) exceeds (1)) or liability sides (when (1) exceeds (2)).

  1. (1) is the difference between the sum of financial investment and fund raising (transaction flow) of each transaction item.
  2. (2) is the difference between the sum of the financial investment and fund raising (transaction flow) calculated directly from the financial statements etc.

("Outward direct investment" held by banks)

The estimation methods of "Outward direct investment" held by banks in depository corporations have been changed by using data from Direct Investment Position (by industry) in International Investment Position of Japan. Before the revision, it had been estimated as a certain ratio in the foreign securities held in the financial statements.

("Outward investments in securities" held by banks)

The estimation methods of "Outward investments in securities" (transaction flow) held by banks in depository corporations have been changed by using the data such as "Financial Account" (of which, "Portfolio Investment") etc, in the Balance of Payments Statistics. Before the revision, the transaction flow had been recorded using term-on-term difference in the values that were estimated by deducting the external securities issued by residents and outward direct investment from the foreign securities.

(Investment assets by social security funds)

For the entrusted assets in trust accounts by "Government Pension Investment Fund" in social security funds, the breakdown of investment assets in trust account had been estimated by multiplying the amount outstanding of trust beneficiary rights by the weight of asset-mix in separately managed money trust as a whole, assuming that the composition of investment assets in trust account is identical to the composition of the whole investment assets (designated noncollectively invested money trusts). After the revision, the estimation methods have been changed by using the publicized data from "Government Pension Investment Fund" directly (the similar estimation method's revision for Postal savings and Postal life insurance has been already conducted. Please refer to the notice released on March 24, 2006).

("Housing loans" held by structured-financing special purpose companies and trusts)

The estimation methods for "Housing loans" held by structured-financing special purpose companies and trusts have been refined by conducting an additional survey on fiduciary assets of entrusted monetary claim in financial institutions.

("Central government securities and FILP bonds" <asset>, "Repurchase agreements and securities lending transactions" <asset and liability> and "Bills purchased" <asset> by Tanshi companies <money market dealers>)

The estimation methods for "Central government securities and FILP bonds", "Repurchase agreements and securities lending transactions" and "Bills purchased" by Tanshi companies (money market dealers) have been changed by using data directly from the financial statement. Before the revision, "Central government securities and FILP bonds" and "Repurchase agreements and securities lending transactions" had been based on the source data such as the summary sheet of registered government bonds and clearing government bonds of each business. "Bills purchased" had been estimated as the residual after deducting the amount outstanding of bills purchased held by the sectors other than tanshi companies from the total of bills sold outstanding (the residuals which holder can not be identified are posted on securities companies).

("Repurchase agreements and securities lending transactions")

For "Bond gensaki (sale and repurchase) transactions" in "Repurchase agreements and securities lending transactions", before the revision, to balance assets and liabilities that occur as a result, when the amount of outstanding gensaki on the asset side (liability side) exceeded that on the liability side (asset side), the difference had been allocated proportionally in the liability side (asset side) by each sector. After the revision, the residuals have been allocated only to "Private nonfinancial corporations".

("Shares and other equities")

The unlisted stocks, the amount outstanding evaluated on market-equivalent value, included in "Other equities" in "Share and other equities" have been estimated by comparing profit, net assets and dividends of listed companies of similar business type and by the market price listed on the stock exchange. The evaluation methods have been revised as the calculation methods by comparing profit, net assets and dividends of listed companies of similar business type was revised (Annual Report on National Accounts, 2006).

The estimation methods for "Other equities" held by government financial institutions and central government have been partly changed by evaluating on a market price.