Financial Soundness Indicators

Compilation Guide
March 2006

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Contents

	Abbreviations (52KB pdf file)
	Foreword (84KB pdf file)

I.	Introduction (96KB pdf file)
	Background
	Some key aspects of the Guide
	Structure of the Guide
	Terminology

PART I: CONCEPTUAL FRAMEWORK

II.	Overview of the Financial System (80KB pdf file)
	Introduction
	What Is a Financial System?
	Financial Corporations
	Nonfinancial Corporations
	Households
	Nonprofit Institutions Serving Households (NPISHs)
	General Government
	Public Sector
	Financial Markets
	Payment System
	Real Estate Markets
III.	Accounting Principles for Financial Soundness Indicators (100KB pdf file)
	Introduction
	Definition of Flows and Positions
	Time of Recognition of Flows and Positions
	Valuation
	Residence
	Domestic and Foreign Currencies, Unit of Account, and Exchange Rate Conversion
	Maturity
IV.	Accounting Framework and Sectoral Financial Statements (204KB pdf file)
	Introduction
	Accounting Framework
	Sectoral Financial Statements
V.	Aggregation and Consolidation of Data (136KB pdf file)
	Introduction
	Defining terms
	The Aggregate Resident-Based Approach
	The Consolidated-Based Approach
	Applying Consolidated Group Reporting to the Needs of FSI data
	Specific Issues Arising from the Consolidated Approach
	Compiling Consolidated Sector-Level Data
	Annex: Detailed Specification of the Sector-Level Adjustments Required

PART II: SPECIFICATION OF FINANCIAL SOUNDNESS INDICATORS

VI.	Specification of Financial Soundness Indicators for Deposit Takers (128KB pdf file)
	Introduction
	Financial Soundness Indicators
VII.	Specification of Financial Soundness Indicators for Other Sectors (64KB pdf file)
	Introduction
	Calculation of Financial Soundness Indicators
VIII.	Financial Markets (120KB pdf file)
	Introduction
	Interest Rates
	Securities Markets
	Annex: Structural Indicators for Financial Markets
IX.	Real Estate Price Indices (100KB pdf file)
	Introduction
	Measuring Real Estate Prices
	Structural Indicators of Real Estate Markets
	Constructing Real Estate Price Measures

PART III: COMPILATION AND DISSEMINATION OF FINANCIAL SOUNDNESS INDICATORS

X.	Strategic and Managerial Issues (100KB pdf file)
	Introduction
	Strategic Issues
	Managerial Issues
XI.	Compilation of FSI Data: Practical Issues (152KB pdf file)
	Introduction
	Basic Data Sources
	Other Data Requirements
	Availability of Data
	Breaks in Data Series
	Seasonal Adjustment
XII.	Dissemination of FSI Ratios and Related Data (96KB pdf file)
	Introduction
	Dissemination Practices
	A framework for Disseminating FSIs

PART IV: ANALYSIS OF FINANCIAL SOUNDNESS INDICATORS

XIII.	Financial Soundness Indicators and Macroprudential Analysis (104KB pdf file)
	Introduction
	Why are FSI Data Needed?
	What is the Financial Stability Framework within which FSI Data Can Be Used?
	What Are Some Other Tools That Can Enhance the Usefulness and Understanding of FSI Data?
XIV.	What Use Can Be Made of the Specific FSIs? (80KB pdf file)
	Introduction
	Deposit Takers
	Other Financial Corporations
	Nonfinancial Corporations
	Households
	Real Estate Markets
XV.	Peer Group Analysis and Descriptive Statistics (116KB pdf file)
	Introduction
	Peer Group Analysis
	Descriptive Statistics

Appendixes (484KB pdf file)

I.	Survey on the Use, Compilation, and Dissemination of Macroprudential Indicators
II.	Summary of Guidance for each Financial Soundness Indicator
III.	Additional Definitions of FSIs and Related Data Series
IV.	Reconciliation between the Guide’s Methodology and National and Commercial Accounting
V.	Numerical Examples
VI.	Remaining Issues: Provisioning, Interest Rate Risk, and Stress Testing
VII.	Glossary of Terms

Bibliography (68KB pdf file)

Index (76KB pdf file)