## f1-more-disaggregated-institutional-sector-and-financial-instrument-breakdowns

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---

### Background
- The GN notes that current breakdowns in the System of National Accounts 2008 (2008 SNA) and BPM6 may not capture developments such as:
  - the expansion of non-bank financial intermediation in volume and types of institutions;
  - the increased importance of financial derivatives; and
  - the emergence of fintech.
- The statistical community began exploring better capture of non-bank financial intermediation as part of Recommendation II.5 of the second phase of the G20 Data Gaps Initiative (DGI-II).
- Related guidance notes informing proposals: GN F.6, GN F.4, GN F.7, GN G.2, and GN G.4.
- The GN:
  - takes into account recommendations of GN F.6, F.4, F.7, G.2 and G.4;
  - proposes additional breakdowns of institutional sectors and financial instruments in the SNA and external sector statistics (ESS);
  - recognizes that SNA provides more detailed methodological descriptions of sub-sectors and that consistent ESS sub-sectors at more aggregated levels would facilitate integrated compilation and analysis;
  - notes that final recommendations in other GNs may introduce further proposals and that the topic will be revisited toward the end of the update process.

### Issues identified for discussion
- Issue 1 — Further institutional sector breakdowns in the SNA:
  - Need for more granular breakdowns within the financial corporations sector to distinguish groups of institutional units, obtain insight into specific risks and spill-overs, and provide more insight into ownership and control.
  - OECD 2017 proposal endorsed by G20 (summer of 2018) and included as voluntary series in OECD and ECB collection templates.
  - Recommendation II.8 work led OECD to propose splitting S.11x and S.12x into domestically controlled and foreign controlled, with domestically controlled further split into public and private, and an “of which” category for corporations that are part of a domestic multinational.
  - GN G.4 proposes separate identification of SPEs as “of which” items within “foreign controlled” at S.12x and S.11x levels in the SNA.
- Issue 2 — Further institutional sector breakdowns in ESS:
  - BPM6 standard sectors and subsectors align with SNA but differ in presentation; GN F.6 recommends further breakdowns of OFCs to capture non-bank intermediation.
  - GN G.4 preference to separately identify SPEs as supplementary “of which” items is particularly relevant for ESS.
  - Assessment of needs for further breakdowns in cross-border transactions and positions, particularly separating NFCs from households and NPISHs in ESS other sectors.
- Issue 3 — Further financial instrument breakdowns:
  - Chapter 11 of 2008 SNA describes financial instruments; DGI-II work showed more granular breakdowns help analyze specific risks and spillovers.
  - BPM6 classifies instruments into standard components including: (i) equity and investment fund shares, (ii) special drawing rights, (iii) currency and deposits, (iv) debt securities, (v) loans, (vi) insurance, pension, and standardized guarantee schemes, (vii) trade credit and advances, (viii) other accounts receivable/payable, (ix) monetary gold, and (x) financial derivatives and employee stock options.
  - GN F.6 and GN F.4 propose additional subcategories and derivative classifications; GN F.6 proposes “of which” items under loans.

### Key questions for discussion
- Whether to include further breakdowns of the financial corporations sector in the updated SNA consistent with GN F.6 and DGI-II work.
- How to identify and present “of which” items for domestically controlled public and private corporations that are part of a domestic multinational (S.11x and S.12x) as proposed by GN G.2.
- Whether to introduce “of which” identification of SPEs within foreign-controlled S.11x and S.12x as proposed by GN G.4.
- Whether ESS should adopt further breakdowns of OFCs (including separate identification of Money Market Funds) and separate NFCs from households and NPISHs in the standard sector presentation.
- What additional financial instrument breakdowns should be introduced in SNA and ESS, including specific derivative classifications and “of which” loan items.

### Outcomes — Institutional sector breakdowns in the SNA (Issue 1)
- The GN confirms inclusion of further breakdowns of the financial corporations sector as recommended in GN F.6 and DGI-II work in the updated SNA.
- Confirms inclusion of “of which” items for domestically controlled public and private corporations (both financial and nonfinancial) that are part of a domestic multinational as recommended by GN G.2.
- Confirms inclusion of an “of which” category for foreign controlled SPEs for nonfinancial corporations (S.11x) and financial corporations (S.12x) as recommended by GN G.4.
- Financial corporations:
  - information on SPEs should be included as an “of which” item for financial corporations as a whole and at the more detailed level for “corporate groups’ captive financial entities” within subsector S.127.
- Subsector guidance:
  - the subsectors of the financial corporations sector (S121–S129) will remain unchanged;
  - further breakdowns of financial corporations can be compiled where relevant for a country but should not be interpreted as required for all countries;
  - inclusion in specific international data requests should depend on the aim of the data collection and follow careful cost-benefit analysis.
- Recommendation on fintech:
  - following GN F.7, do not introduce separate sectors or financial instruments for fintech in the updated SNA;
  - an “of which” category for fintech companies may be considered within subsector classification if a country has a strong need to identify them separately; this also applies to ESS.

### Outcomes — Institutional sector breakdowns in ESS (Issue 2)
- The GN confirms introducing further breakdowns for OFCs as supplementary items following GN F.6, including:
  - separate identification of Money Market Funds (MMFs) under OFCs to reconcile differences between ESS and monetary and financial statistics (MFS);
  - GN does not propose regrouping MMFs with deposit-taking corporations to align with MFS; instead, in ESS both MMFs and non-MMF investment funds should be grouped under OFCs.
- The GN proposes splitting nonfinancial corporations (NFCs) and households and NPISHs as two separate standard components:
  - currently aggregated as one standard component in BPM6, preventing separation of cross-border positions and flows of resident corporations from those of households and NPISHs;
  - separating these sectors is increasingly important because multinational enterprises (MNEs) have increased intragroup flows, significantly affecting measurement of current and financial accounts;
  - separating these sectors improves linkage possibilities between ESS and other statistics and enables from-whom-to-whom type analyses.
- The GN proposes introducing “of which” items for SPEs as supplementary items for:
  - deposit-taking corporations,
  - OFCs,
  - NFCs.
  - Rationale: large corporate groups use SPEs in complex organizational structures; SPEs now include nonfinancial specialized entities established by MNEs to manage intellectual property rights, R&D, trade, and other group activities.
  - “Of which” items are supplementary because many countries do not host a relevant number or material activities of SPEs.

### Outcomes — Financial instrument breakdowns (Issue 3)
- Financial derivatives:
  - confirm introducing breakdowns per GN F.4 by market risk category: foreign exchange, single-currency interest rate, equity, commodity, credit, and others;
  - supplement by instrument: options, forwards and related instruments, futures, swaps, credit derivatives, marketable employee stock options, and other instruments;
  - include trading venue and clearing status: exchange traded, over-the-counter [cleared], and over-the-counter [not cleared].
- Loans and liquidity items:
  - following GN F.6, include “Repurchase agreements, securities lending with cash collateral, and margin lending” as an “of which” item under loans in the updated SNA and BPM;
  - agreed as part of DGI-II (Recommendations II.5 and II.8) to provide information on liquidity risk and leverage;
  - the updated BPM should include repurchase agreements, securities lending with cash collateral, and margin lending, as well as non-performing loans as an “of which” item in the main presentation (i.e., the list of standard components and selected supplementary items presented in Appendix 9 of BPM6).
- Non-performing loans:
  - GN F.6 proposed an “of which” for “non-performing loans” more explicitly; compilation of this item is already required in the 2008 SNA and BPM6, and presentational issues could be considered at drafting stage of new manuals.

### FITT member views and questions for final decision
- FITT members broadly supported finalizing recommendations of relevant GNs as proposed in this GN for the updated SNA and BPM (Paragraph 20).
- Varied views included:
  - one member preferred continued separate data collection on SPEs before introducing “of which” items to assess materiality, data quality, and cost–benefit;
  - another preferred an SPE functional dimension under which institutional sectors and financial instruments could be identified;
  - one member suggested other possible breakdowns (e.g., separately distinguishing loans related to leasing).
- On separating NFCs from households and NPISHs (Paragraph 21):
  - FITT members broadly supported the separate identification;
  - some members indicated that households data are not significant in ESS, but the GN notes households and NPISHs can have relevant cross-border transactions and positions (e.g., households’ investment abroad) that may diffuse analysis when users focus on nonfinancial corporations.
- Questions posed for decision:
  - 1) Do you agree to finalize the recommendations of relevant GNs as proposed in this GN for the updated SNA and BPM?
  - 2) Do you agree to separately identify nonfinancial corporations from households and NPISHs in the updated BPM?
  - 3) Do you have any additional proposals on institutional sectors and financial instruments in the updated SNA and BPM?

### Annex summaries — proposed classifications and supplementary items
- Annex I — Proposed SNA sector additions (selected):
  - Nonfinancial corporations (S11)
    - Domestically controlled (S11DO)
      - Public nonfinancial corporations (S11001)
        - Of which: Public nonfinancial corporations which are part of domestic multinationals (S110011)
      - National private nonfinancial corporations (S11002)
        - Of which: National private nonfinancial corporations which are part of domestic multinationals (S110021)
    - Foreign controlled (S11003)
      - Of which: SPEs
  - Financial corporations (S12)
    - Domestically controlled (S12DO)
      - Public nonfinancial corporations (S12001)
        - Of which: Public nonfinancial corporations which are part of domestic multinationals (S120011)
      - National private nonfinancial corporations (S12002)
        - Of which: National private nonfinancial corporations which are part of domestic multinationals (S120021)
    - Foreign controlled (S12003)
      - Of which: SPEs
    - Central Bank (S121)
    - Deposit-taking corporations except the central bank (S122)
    - Money Market Funds (MMFs) (S123), into:
      - Constant Net Asset Value MMFs
      - Variable Net Asset Value MMFs
    - Non-Money Market Funds (non-MMFs) (S124), into open end and closed end types and subtypes (real estate, equity, bond, mixed or balanced, hedge funds, other)
    - Other Financial Intermediaries (OFIs) (S125), into securitisation FVCs, financial corporations engaged in lending (FCLs), security and derivative dealers, specialised financial corporations, other (of which central clearing counterparties)
    - Financial auxiliaries (S126)
    - Captive financial institutions and money lenders (S127), into trusts, corporate groups’ captive financial entities (Of which: Foreign owned SPE-type captives), other captive finance companies and money lenders
    - Insurance corporations (S128) into non-life and life
    - Pension funds (S129) into defined benefit and defined contribution
- Annex II — Proposed ESS breakdowns (selected):
  - Central bank (Monetary authorities)
  - Deposit-taking corporations (Of which SPEs)
  - General government
  - Other sectors
  - Other financial corporations:
    - Money market funds (MMFs)
    - Non-MMF investment funds
    - Insurance corporations
    - Pension funds
    - Other financial intermediaries (Of which: Central clearing counterparties)
    - Captive financial institutions and money lenders, and financial auxiliaries (Of which SPEs)
  - Nonfinancial corporations (NFCs) (Of which SPEs)
  - Households (HHs) and non-profit institutions serving households (NPISHs)
- Annex III — Proposed additional financial instrument breakdowns (selected):
  - Equity and investment fund shares: Equity; Investment fund shares/units
  - Debt instruments:
    - Special Drawing Rights
    - Currency and deposits
    - Debt securities
    - Loans
      - Of which: Repurchase agreements, securities lending with cash collateral, and margin lending
    - Insurance, pension, and standardized guarantee schemes
    - Trade credit and advances
    - Other accounts payable/receivable
  - Other financial assets and liabilities:
    - Monetary gold
    - Financial derivatives and employee stock options classified:
      - By market risk category: Foreign exchange; Single-currency interest rate; Equity; Commodity; Credit; Other
      - By instrument: Options; Forwards and related instruments; Futures; Swaps; Credit derivatives; Marketable employee stock options; Other
      - By trading venue and clearing status: Exchange traded; Over-the-counter (cleared); Over-the-counter (not cleared)
  - Notes: Items in italic are supplementary; each financial instrument is classified by institutional sectors in ESS.
- Annex IV — Crosswalk between current and proposed sector and subsector items, showing S121–S129 mappings and proposed “of which” SPE annotations and MMF/non-MMF splits.
- Annex V — Supplementary information: references to OECD studies and guides.

*Source: International Monetary Fund.*

### SECTION I: THE ISSUE

### SECTION I: THE ISSUE

### BACKGROUND
- The current breakdowns of institutional sectors and financial instruments in the System of National Accounts 2008 (2008 SNA) and the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) may not be sufficient to capture new developments in the financial world, notably:
  - the expansion of non-bank financial intermediation in volume and types of institutions;
  - the increased importance of financial derivatives; and
  - the emergence of fintech.
- The statistical community began exploring better capture of non-bank financial intermediation as part of Recommendation II.5 of the second phase of the G20 Data Gaps Initiative (DGI-II).
- GN F.6 “Capturing Non-bank Financial Intermediation in the System of National Accounts and External Sector Statistics” recommends further breakdowns of institutional sectors and financial instruments to address non-bank intermediation.
- GN F.4 “Financial Derivatives by Type” recommends new classifications of financial derivatives.
- GN F.7 “Impact of Fintech on Macroeconomic Statistics” discusses separate identification of fintech companies.
- GNs G.2 “Treatment of MNE and Intra-MNE Flows” and G.4 “Treatment of Special Purpose Entities” leverage DGI-II Recommendation II.8 on sectoral accounts to propose identifying Special Purpose Entities (SPEs) as part of foreign-controlled financial and nonfinancial corporations.
- This GN:
  - takes into account recommendations of GN F.6, F.4, F.7, G.2 and G.4;
  - proposes additional breakdowns of institutional sectors and financial instruments in the SNA and external sector statistics (ESS);
  - notes that SNA provides more detailed methodological descriptions of sub-sectors and that consistent ESS sub-sectors at more aggregated levels would facilitate integrated compilation and analysis;
  - recognizes that final recommendations in other GNs may introduce further proposals and that the topic will be revisited toward the end of the update process to agree on a comprehensive final proposal.
- Proposals in this GN are applicable across other GNs (for example GN D.7 “Sectoral Breakdown of Direct Investment”); agreed additional sector breakdowns would be applied to direct investment following GN D.7.

### ISSUES FOR DISCUSSION
Issue 1 — Further Institutional Sector Breakdowns in the SNA
- Chapter 4 of the 2008 SNA describes institutional sectors and subsectors; more granular breakdowns within the financial corporations sector are needed to:
  - distinguish various groups of institutional units;
  - obtain insights into specific types of risks and possible spill-over effects;
  - provide more insight into ownership and control of both financial and nonfinancial corporations.
- OECD proposal (2017) for more granular breakdowns of the financial corporations sector to better capture non-bank financial intermediation:
  - was endorsed by G20 economies in summer of 2018 (as “more advanced ambitions”);
  - has been included as voluntary series in OECD and ECB collection templates for institutional sector accounts and will be included in Eurostat templates.
- Recommendation II.8 work led OECD to propose collection of information on domestically controlled corporations that are part of a domestic multinational:
  - S.11x (nonfinancial corporations) and S.12x (financial corporations) first broken down into domestically controlled and foreign controlled;
  - domestically controlled further split into public and private domestically controlled corporations;
  - an “of which” category highlights corporations that are part of a domestic multinational.
  - This proposal has been confirmed by GN G.2.
- GN G.4 proposes separate identification of SPEs as “of which” items within “foreign controlled” at S.12x and S.11x levels in the SNA:
  - aims to take identification of SPEs from ESS into the SNA;
  - recommends an “of which” category rather than combining all SPEs into one subsector;
  - in financial corporations, the DGI-II template includes an “of which” item under Corporate groups’ captive financial entities (a subcategory of S127), but SPEs may exist in other subsectors as well.

Issue 2 — Further Institutional Sector Breakdowns in ESS
- BPM6 lists standard institutional sectors: (i) central bank, (ii) deposit-taking corporations, except the central bank, (iii) general government, and (iv) other sectors with two further breakdowns: (iv-a) other financial corporations (OFCs) and (iv-b) nonfinancial corporations, households, and nonprofit institutions serving households (NPISHs).
- BPM6 covers the same sectors and subsectors as the SNA but differs in presentation because BPM6 includes functional categories and allows greater backward compatibility with BPM5 and a shorter sector list for economies unable to implement the full classification.
- GN F.6 recommends further breakdowns of OFCs to better capture non-bank financial intermediation.
- GN G.4 preference to separately identify SPEs as supplementary “of which” items for financial and nonfinancial corporations is particularly relevant for ESS.
- This GN also considers developments in cross-border transactions and positions and assesses needs for further breakdowns, particularly separating nonfinancial corporations from households and NPISHs in ESS other sectors.

Issue 3 — Further Financial Instrument Breakdowns
- Chapter 11 of the 2008 SNA describes financial instruments; DGI-II work showed more granular breakdowns would help analyze specific risks and spillovers.
- OECD proposal included suggestions for additional subcategories in the financial instrument breakdown.
- BPM6 classifies financial instruments into three broad categories: equity and investment fund shares, debt instruments, and other financial assets and liabilities. Standard components listed in BPM6 include:
  - (i) equity and investment fund shares,
  - (ii) special drawing rights,
  - (iii) currency and deposits,
  - (iv) debt securities,
  - (v) loans,
  - (vi) insurance, pension, and standardized guarantee schemes,
  - (vii) trade credit and advances,
  - (viii) other accounts receivable/payable,
  - (ix) monetary gold, and
  - (x) financial derivatives and employee stock options.
- This GN discusses recommendations from other GNs (for example “of which” items under loans recommended by GN F.6) and proposes additional financial instrument breakdowns for SNA and ESS comprehensively.

### KEY QUESTIONS IDENTIFIED FOR DISCUSSION
- Whether to include further breakdowns of the financial corporations sector in the updated SNA consistent with GN F.6 and DGI-II work.
- How to identify and present “of which” items for domestically controlled public and private corporations that are part of a domestic multinational (S.11x and S.12x) as proposed by GN G.2.
- Whether to introduce “of which” identification of SPEs within foreign-controlled S.11x and S.12x as proposed by GN G.4.
- Whether ESS should adopt further breakdowns of OFCs (including separate identification of Money Market Funds) and separate NFCs from households and NPISHs in the standard sector presentation.
- What additional financial instrument breakdowns should be introduced in SNA and ESS, including specific derivative classifications and “of which” loan items.

---

### SECTION II: OUTCOMES

### Issue 1 — Further Institutional Sector Breakdowns in the SNA (Outcomes)
- The GN confirms inclusion of further breakdowns of the financial corporations sector as recommended in GN F.6 and DGI-II work in the updated SNA.
- Confirms inclusion of “of which” items for domestically controlled public and private corporations (both financial and nonfinancial) that are part of a domestic multinational as recommended by GN G.2.
- Confirms inclusion of an “of which” category for foreign controlled SPEs for nonfinancial corporations (S.11x) and financial corporations (S.12x) as recommended by GN G.4.
- For financial corporations:
  - information on SPEs should be included as an “of which” item for financial corporations as a whole and at the more detailed level for “corporate groups’ captive financial entities” within subsector S.127.
- Subsector guidance:
  - the subsectors of the financial corporations sector (S121–S129) will remain unchanged;
  - further breakdowns of financial corporations can be compiled where relevant for a country but should not be interpreted as required for all countries;
  - inclusion in specific international data requests should depend on the aim of the data collection and follow careful cost-benefit analysis.
- Recommendation on fintech:
  - following GN F.7, do not introduce separate sectors or financial instruments for fintech in the updated SNA;
  - an “of which” category for fintech companies may be considered within subsector classification if a country has a strong need to identify them separately; this also applies to ESS.

### Issue 2 — Further Institutional Sector Breakdowns in ESS (Outcomes)
- The GN confirms introducing further breakdowns for OFCs as supplementary items following GN F.6, including:
  - separate identification of Money Market Funds (MMFs) under OFCs to reconcile differences between ESS and monetary and financial statistics (MFS);
  - GN does not propose regrouping MMFs with deposit-taking corporations to align with MFS; instead, in ESS both MMFs and non-MMF investment funds should be grouped under OFCs.
- The GN proposes splitting nonfinancial corporations (NFCs) and households and NPISHs as two separate standard components (see Annex II):
  - currently aggregated as one standard component in BPM6, preventing separation of cross-border positions and flows of resident corporations from those of households and NPISHs;
  - separating these sectors is increasingly important because multinational enterprises (MNEs) have increased intragroup flows, significantly affecting measurement of current and financial accounts;
  - separating these sectors improves linkage possibilities between ESS and other statistics and enables from-whom-to-whom type analyses.
- The GN proposes introducing “of which” items for SPEs as supplementary items for:
  - deposit-taking corporations,
  - OFCs,
  - NFCs.
  - Rationale: large corporate groups use SPEs in complex organizational structures; SPEs now include nonfinancial specialized entities established by MNEs to manage intellectual property rights, R&D, trade, and other group activities.
  - “Of which” items are supplementary because many countries do not host a relevant number or material activities of SPEs.

### Issue 3 — Additional Breakdowns for Financial Instruments in the SNA and ESS (Outcomes)
- The GN confirms introducing breakdowns of financial derivatives per GN F.4:
  - classify financial derivatives by market risk category: foreign exchange, single-currency interest rate, equity, commodity, credit, and others;
  - supplement by instrument: options, forwards and related instruments, futures, swaps, credit derivatives, marketable employee stock options, and other instruments;
  - include trading venue and clearing status: exchange traded, over-the-counter [cleared], and over-the-counter [not cleared].
- Following GN F.6 recommendations, the GN proposes including “Repurchase agreements, securities lending with cash collateral, and margin lending” as an “of which” item under loans in the updated SNA and BPM:
  - agreed as part of DGI-II (Recommendations II.5 and II.8) to provide information on liquidity risk and leverage;
  - the updated BPM should include repurchase agreements, securities lending with cash collateral, and margin lending, as well as non-performing loans as an “of which” item in the main presentation (i.e., the list of standard components and selected supplementary items presented in Appendix 9 of BPM6).
- Note: GN F.6 proposed an “of which” for “non-performing loans” more explicitly; compilation of this item is already required in the 2008 SNA and BPM6, and presentational issues could be considered at drafting stage of new manuals.

*Prepared by Joji Ishikawa (IMF) and Jorrit Zwijnenburg (OECD), with inputs from Anna Maria Agresti (ECB), Barend de Beer (South African Reserve Bank), Branimir Gruic (BIS), Andreas Hertkorn (ECB), Padma Sandhya Hurree Gobin (IMF), Inutu Lukonga (IMF), Patrick McGuire (BIS), Paula Menezes (Banco de Portugal), Jose Carlos Moreno-Ramirez (IMF), and Benson Sim (United Nations).*

### 20.      FITT members broadly supported the finalization of recommendations of relevant GNs as

### f1-more-disaggregated-institutional-sector-and-financial-instrument-breakdowns - 20.      FITT members broadly supported the finalization of recommendations of relevant GNs as

### FITT member views on proposed GN recommendations
- Paragraph 20: FITT members broadly supported the finalization of recommendations of relevant GNs as proposed in this GN for the updated SNA and BPM.
- Varied member preferences:
  - One FITT member preferred continuing the separate data collection on SPEs before introducing “of which” items as proposed in this GN, to assess materiality, data quality, and cost–benefit prior to incorporation in the reporting template in the new manuals.
  - Another member preferred introducing a SPE functional dimension, under which institutional sectors and financial instruments could be identified.
  - One FITT member suggested other possible breakdowns (e.g., separately distinguishing loans related to leasing).

### Identification of nonfinancial corporations vs households and NPISHs
- Paragraph 21: FITT members broadly supported the separate identification of nonfinancial corporations from households and NPISHs in other sectors of ESS.
- Additional observations:
  - Some members indicated that data for households are not significant in ESS.
  - The authors of this GN note that households and NPISHs can have relevant cross-border transactions and positions (e.g., households’ investment abroad) that may diffuse analysis when users are only interested in understanding the role of nonfinancial corporations in cross-border flows and stocks or in such households flows.

### Questions for discussion
- 1) Do you agree to finalize the recommendations of relevant GNs as proposed in this GN for the updated SNA and BPM?
- 2) Do you agree to separately identify nonfinancial corporations from households and NPISHs in the updated BPM?
- 3) Do you have any additional proposals on institutional sectors and financial instruments in the updated SNA and BPM?

### Annex I — Proposed more disaggregated institutional sector breakdowns (Additions to the SNA Sectoral Breakdown in Italic)
- Nonfinancial corporations (S11)
  - Domestically controlled (S11DO)
    - Public nonfinancial corporations (S11001)
      - Of which: Public nonfinancial corporations which are part of domestic multinationals (S110011)
    - National private nonfinancial corporations (S11002)
      - Of which: National private nonfinancial corporations which are part of domestic multinationals (S110021)
  - Foreign controlled (S11003)
    - Of which: SPEs
- Financial corporations (S12)
  - Domestically controlled (S12DO)
    - Public nonfinancial corporations (S12001)
      - Of which: Public nonfinancial corporations which are part of domestic multinationals (S120011)
    - National private nonfinancial corporations (S12002)
      - Of which: National private nonfinancial corporations which are part of domestic multinationals (S120021)
  - Foreign controlled (S12003)
    - Of which: SPEs
  - Central Bank (S121)
  - Deposit-taking corporations except the central bank (S122)
  - Money Market Funds (MMFs) (S123), into:
    - Constant Net Asset Value MMFs
    - Variable Net Asset Value MMFs
  - Non-Money Market Funds (non-MMFs) (S124), into:
    - Open end funds
      - Real estate funds
      - Equity funds
      - Bond funds
      - Mixed or balanced funds
      - Hedge funds
      - Other
    - Closed end funds
      - Real estate funds
      - Equity funds
      - Bond funds
      - Mixed or balanced funds
      - Hedge funds
      - Other
  - Other Financial Intermediaries (OFIs) (S125), into:
    - Financial vehicle corporations engaged in securitisation transactions
    - Financial corporations engaged in lending (FCLs)
    - Security and derivative dealers
    - Specialised financial corporations
    - Other
      - of which central clearing counterparties
  - Financial auxiliaries (S126)
  - Captive financial institutions and money lenders (S127), into:
    - Trusts, estate and agency accounts
    - Corporate groups’ captive financial entities
      - Of which: Foreign owned SPE-type captives
    - Other captive finance companies and money lenders
  - Insurance corporations (S128), into:
    - Non-life insurance corporations
    - Life insurance corporations
  - Pension funds (S129), into:
    - Defined benefit pension funds
    - Defined contribution pension funds

### Annex II — Proposed more disaggregated institutional sector breakdowns in ESS
- Central bank
  - Monetary authorities
- Deposit-taking corporations
  - Of which SPEs
- General government
- Other sectors
- Other financial corporations
  - Money market funds (MMFs)
  - Non-MMF investment funds
  - Insurance corporations
  - Pension funds
  - Other financial intermediaries
    - Of which: Central clearing counterparties
  - Captive financial institutions and money lenders, and financial auxiliaries
    - Of which SPEs
- Nonfinancial corporations (NFCs)
  - Of which SPEs
- Households (HHs) and non-profit institutions serving households (NPISHs)

Notes in Annex II:
- Items in bold are additional breakdowns proposed in this GN based on input from other GNs.
- Items in italic are supplementary (i.e., countries are encouraged to compile these breakdowns when they are relevant to their countries).
- Captive financial institutions and money lenders as well as financial auxiliaries are combined to reduce the compilation burden (they are not regarded being involved in financial intermediation). However, they can be separately identified in the countries where they have large cross-border transactions and positions.
- Households and non-profit institutions serving households can also be compiled separately in the countries where compilers see its merit.
- Data for central clearing counterparties (CCPs) could be compiled as an “of-which” item for countries that have large cross-border transactions and positions related to CCPs.
- Data for SPEs are “of which” items for deposit-taking corporations, OFCs and NFCs, but they could also be compiled for other institutional sectors if they play an important role in the country.

### Annex III — Proposed additional financial instrument breakdowns
- Equity and investment fund shares
  - Equity
  - Investment fund shares/units
- Debt instruments
  - Special Drawing Rights
  - Currency and deposits
  - Debt securities
  - Loans
    - Of which: Repurchase agreements, securities lending with cash collateral, and margin lending
  - Insurance, pension, and standardized guarantee schemes
  - Trade credit and advances
  - Other accounts payable/receivable
- Other financial assets and liabilities
  - Monetary gold
  - Financial derivatives and employee stock options
    - (By market risk category)
      - Foreign exchange
      - Single-currency interest rate
      - Equity
      - Commodity
      - Credit
      - Other
    - (By instrument)
      - Options
      - Forwards and related instruments
      - Futures
      - Swaps
      - Credit derivatives
      - Marketable employee stock options
      - Other
    - (By trading venue and clearing status)
      - Exchange traded
      - Over-the-counter (cleared)
      - Over-the-counter (not cleared)
- Notes:
  - Items in italic are supplementary
  - Each financial instrument is classified by institutional sectors in ESS.

### Annex IV — Summary of current and proposed sector breakdowns in SNA and ESS
- Presents a crosswalk between Current SNA and Current ESS items and proposed supplementary/encouraged items in SNA and proposed sector breakdowns in ESS, including:
  - GN G4: SPEs DGI-II
  - S121 Central bank / Central bank
  - S122 Deposit-taking corporations / Deposit-taking corporations
  - S123 Constant Net Asset Value MMFs / Variable Net Asset Value MMFs / Other financial corporations / Money Market Funds (MMFs)
  - S124 Open end IFs by types (6) / Closed end IF by type (6) / Non-MMF investment funds
  - S125 FVCs / Financial corporations engaged in lending (FCLs) / Security and derivative dealers / Specialised financial corporations / Other financial intermediaries (of which: CCPs)
  - S126 Captive financial institutions and money lenders, and financial auxiliaries
  - S127 Trusts / Corporate groups’ captive financial entities (of which: Foreign owned SPE-type captives) / Other captive finance companies and money lenders
  - S128 Non-life insurance corporations / Life insurance corporations / Insurance corporations
  - S129 Defined benefit pension funds / Defined contribution pension funds / Pension Funds (Of which SPEs)
  - S11 of which foreign controlled NFCs which are SPEs / NFCs, HHs and NPISHs / Non financial corporations (Of which SPEs)
  - S14 Households and NPISHs
  - S13 General government / General government

### Annex V — Supplementary information
- References to OECD studies and guides (titles preserved in original text).

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_Source: https://www.imf.org/-/media/files/data/statistics/bpm6/fitt/f1-more-disaggregated-institutional-sector-and-financial-instrument-breakdowns.pdf_