## 1.14 Capturing non-bank financial intermediation

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**Canonical URL:** [1.14 Capturing non-bank financial intermediation](https://www.imf.org/-/media/files/data/statistics/gfsm/global-consultations/group3/proposed-recommendations-gfsm-2014-update-114-capturing-nonbank-financial-intermediation.pdf)

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### Summary
- The GFSM 2014 update proposes maintaining the current broad institutional sector classifications for financial corporations while encouraging further subsector disaggregation where relevant or applicable.
- Encourage disclosure, where relevant, of loans in the form of repurchase agreements, securities lending with cash collateral, and margin lending as an “of which” item within loans.
- Links to related guidance include GN F.6 Capturing non-bank financial intermediation in the System of National Accounts and the External Sector Statistics, GN F.1 More Disaggregated Institutional Sector and Financial Instrument Breakdowns, Draft 2025 SNA and Draft BPM7.
- Global consultations and discussions:
  - SNA/BPM Consultation: May 2022
  - BPM Consultation: June 2021
  - Joint AEG/BOPCOM: March 2022
  - BOPCOM: June 2021

### Background and issues
- Non-bank financial intermediaries (NBFIs) have grown rapidly since the global financial crisis and "have become the largest global financial intermediaries, surpassing banks in size."
- The sectoral and instrument breakdowns in the 2008 SNA and BPM6 do not provide sufficient measures of NBFI activities.
- The international macroeconomic statistics frameworks (2008 SNA, BPM6, MFSMCG, and GFSM 2014) use the same institutional sector classification and financial instrument breakdowns. GN F.6 emphasizes adapting national accounts and balance of payments statistics to reflect evolving financial intermediation and risks posed by NBFIs.
- The G20 Data Gaps Initiative II (DGI-II) Recommendation II.5 recommended further breakdown of the financial corporations sector to better capture NBFIs in macroeconomic statistics.
- Institutional sector breakdowns in the SNA:
  - Financial corporations sector (S12) consists of all resident corporations principally engaged in providing financial services (2008 SNA, para. 4.98).
  - Table of nine subsectors (as per 2008 SNA):
    - S121 Central bank
    - S122 Deposit-taking corporations (DTCs) except the central bank
    - S123 Money-market funds (MMFs)
    - S124 Non-MMF investment funds
    - S125 Other financial intermediaries, except insurance corporations and pension funds (ICPFs)
    - S126 Financial auxiliaries
    - S127 Captive financial institutions and money lenders
    - S128 Insurance corporations
    - S129 Pension funds (PFs)
  - The draft 2025 SNA retains composition of financial corporations subsectors, updates coding (S1221 – S1229), and includes supplementary disaggregation to better capture NBFI activities (see 2025 SNA, Table 29.1 and Table A2.14 in Annex 2).
- Institutional sector breakdowns in External Sector Statistics:
  - BPM6 classification is consistent with 2008 SNA; subcategories of Other financial corporations are described in Chapter 4 but were not included in standard BPM6 presentation.
  - Draft BPM7 changes include:
    - inclusion of an “of which” Central clearing counterparties (CCPs) subcategory under Other financial intermediaries (S1225)
    - inclusion of an “of which” SPEs subcategory under Captive financial institutions and money lenders, and financial auxiliaries (S1226+S1227)
- Financial instrument breakdowns:
  - Draft 2025 SNA introduces two “of which” items within loans:
    - Of which: Repurchase agreements, securities lending with cash collateral, and margin lending
    - Of which: Non-performing loans
  - BPM6 and GFSM 2014 already include memo items for stock of non-performing loans at nominal and fair value but do not capture repurchase agreements, securities lending with cash collateral, or margin lending.
- For GFS purposes, public financial corporations subsector may be divided into:
  - public deposit-taking corporations (central bank and deposit-taking corporations)
  - other public financial corporations (GFSM 2014, para 2.116), which include all financial intermediaries except deposit-taking corporations and also include financial auxiliaries (S126), and captive financial institutions and money lenders (S127).

### Proposed recommendations
- Institutional sector classifications
  - Maintain current GFSM’s broad institutional sector classifications for counterpart data as per GFSM 2014 Appendix 8 (Table A8.4).
  - Encourage, where relevant or applicable, disaggregation of institutional subsectors of financial corporations as supplementary information (Annex 1 provides disaggregation details).
- Public financial corporations
  - Maintain current breakdown of public financial corporations in the GFSM.
  - Encourage, where relevant or applicable, disaggregation of institutional subsectors of public financial corporations.
  - In particular, distinguish public pension funds from other financial intermediaries and separately identify auxiliaries and captive financial corporations.
- Financial instrument disclosure
  - Encourage provision of supplementary information, where relevant, on loans in the form of repurchase agreements, securities lending with cash collateral, and margin lending as an “of which” item.
- GFSM text and tables proposed for amendment
  - Tables 7.11, 9.2, and A8.4 with respect to encouraging further breakdowns and descriptions of relevant institutional subsectors.
  - Paragraphs 2.46, 2.116, and 2.121 to ensure consistency of description of OFCs (other public financial corporations).

### Rationale
- Harmonize the updated GFSM with the 2025 SNA and BPM7.
- Eliminate inconsistency in GFSM 2014 regarding description of OFCs.
- Provide standardized breakdowns so compilers in countries where these breakdowns are relevant can use consistent criteria and classifications for NBFIs, while acknowledging not all proposed breakdowns are relevant for all countries.

### Annex summaries (selected breakdowns from draft 2025 SNA and draft BPM7)
- Draft 2025 SNA further breakdowns of Other Financial Corporations (additions in italic in source):
  - Money Market Funds (MMFs) (S1223), into:
    - Constant net asset value funds
    - Variable net asset value funds
  - Non-MMF investment funds (S1224), into:
    - Open-ended funds
      - Real estate funds
      - Equity funds
      - Bond funds
      - Mixed or balanced funds
      - Hedge funds
      - Other open-ended funds
    - Closed-ended funds
      - Real estate funds
      - Equity funds
      - Bond funds
      - Mixed or balanced funds
      - Hedge funds
      - Other closed-ended funds
  - Other Financial Intermediaries, except insurance corporations and pension funds (S1225), into:
    - Financial corporations engaged in the securitization of assets
    - Financial corporations engaged in lending and leasing
    - Underwriters, security and derivative dealers
    - Specialized financial corporations
    - Central clearing counterparties
  - Financial auxiliaries (S1226)
  - Captive financial institutions and money lenders (S1227), into:
    - Trusts, estate and agency accounts
    - Corporate groups’ captive financial entities
      - Of which: Special Purpose Entities (SPEs)
    - Other captive finance companies and money lenders
  - Insurance corporations (S1228), into:
    - Non-life insurance corporations
    - Life insurance corporations
  - Pension funds (S1229), into:
    - Defined benefit pension funds
    - Defined contribution pension funds
  - Source: 2025 SNA, Table A2.14.
- Draft BPM7 proposed ESS breakdowns:
  - Money market funds (MMFs)
  - Non-MMF investment funds
  - Insurance corporations
  - Pension funds
  - Other financial intermediaries except insurance corporations and pension funds
    - Of which: Central clearing counterparties
  - Captive financial institutions and money lenders, and financial auxiliaries
    - Of which: SPEs
  - Source: BPM7, Table 4.2.

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_Source: https://www.imf.org/-/media/files/data/statistics/gfsm/global-consultations/group3/proposed-recommendations-gfsm-2014-update-114-capturing-nonbank-financial-intermediation.pdf_