Money and Monetary Financial Institutions
Data in all tables present stocks items at the end of the period. Last published data are preliminary. The change in the reporting could cause some inconsistencies in conceptual definitions of some items in the year 2005 data.
Until the end of December 2006 the data is published in the currency SIT, from 1 January 2007 the data is published in the currency EUR. The currency EUR in the data until the end of December 2006 is considered as foreign currency, from 1 January 2007 as domestic currency.
Change of Methodology
In May 2006 the tables of the Money and Monetary Financial Institutions chapter, have been changed. Structurally similar tables are based on the methodology of the European Central Bank (ECB) or of the euro area and no more on the methodology of the International Monetary Fund. The data source for the data of the MFI’s in the changed tables is the report of the monetary financial institutions and not the bookkeeping report of the banks and savings banks. The main methodological changes are explained below.
The data from the new tables is available since December 2004, while the time series of the old tables up to March 2006 are still available on the Bank of Slovenia internet page (http://www.bsi.si/en/).
The main differences between the methodology of the ECB and the tables in the monthly bulletin up to April 2006 are as follows:
- The sector of the monetary financial institutions, MFI, contains banks, savings banks, savings and loans undertakings and money market funds, but it does not include old LB in KBM banks, while the banking sector without savings banks, savings and loans undertakings and money market funds but with the old LB and KBM is presented in the old bulletin tables.
- Balance sheet total according to the ECB’s methodology differs from the balance sheet total according to the IMF’s methodology mainly because of the different treatment of the loans. The loans are recorded on gross basis in the new tables and net of provisions in the old set. Consequently the stock of the loans is different.
- There is a difference among the stock of the items loans and deposits and debt securities – among the claims and liabilities, because of the inclusion of the negotiable/non-negotiable securities into the items loans/deposits and debt securities. According to the ECB’s methodology, the non-negotiable debt securities are included into the loans/deposits and the negotiable debt securities into the debt securities.
- According to the ECB’s methodology, the deals by procuration and internal affairs are included on a net basis, while before they were shown on a gross basis.
- There are differences in the composition of monetary aggregates according to national definition and harmonized monetary aggregates according to the ECB’s definition that are described below.
Since April 2006 the data of the specific balance sheet items (loans, deposits, securities other than shares and issued debt securities) are in line with the ECB’s request recorded according to their nominal values. The nominal value of a specific instrument is an amount of the principal, which is owed by the debtor to the creditor:
- loans: unpaid principal, not included the accrued interest, the commissions and other expenses,
- deposits: amount of the time deposits, the accrued interest not included,
- debt securities: nominal value.
Interest, which is subscribed to the principal and thus increases it, is the component of the nominal value.
Description of the balance sheet instruments
Below is a short description of the balance sheet aggregate items or instruments, as defined by the European Central bank:
Holdings of domestic and foreign banknotes and coins in circulation that are commonly used to make payments.
For the purposes of the statistical reporting scheme, this item consists of funds lent by reporting agents to borrowers, which are not evidenced by documents or are represented by a single document (even if it has become negotiable). It includes assets in the form of deposits, bad debt loans, in respect of which repayment is overdue or otherwise identified as being impaired, traded loans, subordinated debt in the form of deposits or loans and claims under reverse repos. The stock of loans is included into the item according to the “gross” principle.
Securities other than shares
Holdings of securities other than shares or other equity, which are negotiable and usually traded on secondary markets or can be offset on the market, and which do not grant the holder any ownership rights over the issuing institution. Besides negotiable debt securities this item includes: negotiable loans that have been restructured into a large number of identical documents and that can be traded on secondary markets and subordinated debt in the form of debt securities. The item does not include the accrued interest – which are classified into the item remaining assets, except when the separation is not possible (when the interest is the inseparable part of the market price).
Holdings of securities which represent property rights in corporations or quasi-corporations. These securities generally entitle the holders to a share in the profits of corporations or quasi-corporations and to a share in their own funds in the event of liquidation. Mutual fund shares and money market fund shares/units are included here.
This item may also include: financial derivative positions with gross positive market values, non-financial assets (tangible or intangible), accrued interest receivable on loans and securities, the surplus from the deals by procuration, internal affairs.
Amounts owed to creditors by reporting agents, other than those arising from the issue of negotiable debt securities. Deposits also cover loans as liabilities of MFIs, which represent amounts received by MFIs that are not structured in the form of deposits, non-negotiable debt securities issued, liabilities for the loans received and where they are not separately stated also deposits redeemable at notice, repos and traded loans.
Securities other than equity issued by reporting agents, which are negotiable and usually traded on secondary markets or which can be offset on the market, and which do not grant the holder any ownership rights over the issuing institution, and the subordinated debt issued by MFI’s in the form of the debt securities. The accrued interest are not included in the stock data, but classified to the remaining liabilities. The amount of debt securities is shown net of own purchase.
This category comprises the amounts arising from the issue of equity capital, including also non-distributed benefits or funds, specific and general provisions against loans, securities and other types of assets. The item is adequately netted for the own shares owned. This item also includes the difference between the revenues and expenditures during the year and the money market fund shares/units issued.
The remaining liabilities consist of accrued interest payable on deposits and debt securities, provisions representing the liabilities vis-á-vis third persons, gross amounts payable in respect of transit items, financial derivative positions. The surplus of the liabilities over claims from the deals by procuration, internal affairs is also included here.
In May 2006 the tables from 1.1. to 1.8 have been changed and substituted with the new ones, which enables partial continuity of the old time series.
The entry to the euro area (on 1,1.2007) caused a break in the time series of the statistical tables in the Monthly bulletin in cases where the “currency” is an attribute. An expected reclassification of the data between the individual columns in the tables, which keep the same name takes place, for example of the stock of outstanding loans in euros from the time series of “foreign currency” before the introduction to the time series of “domestic currency” after the introduction of euro. To enable easier reconstruction of this change, the shares of the Euro amounts in stocks of the foreign currency on 31.12.2004, 31.12.2005 and 31.12.2006 are published in the Methodological notes for the tables 1.3, 1.4, 1.5 in 1.6, where the reclassification occurred.
Note 1: With the publication of April 2011data the corrected time series on Deposit with agreed maturity and Deposit redeemable at notice (Tables 1.2., 1.4., 1.6.) were published for the period January 2009 to May 2010 due to the change on the source of the data.
Table 1.1.: Monetary Aggregates
The table shows stock data at the end of month for monetary aggregates M1, M2 and M3, calculated according to the definition of the European Central Bank.
The main characteristics of monetary aggregates under the ECB’s definition:
- Inclusion of liabilities of MFI sectors to EMU non-monetary sectors,
- Exclusion of the monetary neutral sector (the central government has the status of a monetary neutral sector),
- Limited maturity of items included (liabilities of up to 2 years and deposits redeemable at notice of up to 3 months only),
- Equal treatment of the liabilities in domestic and foreign currency,
- Inclusion of the money market fund shares/units into M3.
Composition of monetary aggregates, as defined by the ECB is:
- M1 contains currency in circulation and overnight deposits,
- M2 includes beside M1 also deposits with agreed maturity of up to 2 years and deposits redeemable at notice of up to 3 months,
- M3 includes M2, repurchase agreements and debt securities with the maturity of up to 2 years and money market fund shares/units.
The table is split into two parts: the first part (before the entry of Slovenia into EMU until the end of December 2006) presents Monetary aggregates of Slovenia and the second part (after the entry of Slovenia into EMU from 1 January 2007 onwards) presents the contribution of Slovenia to monetary aggregates of EMU.
The item ‘Currency in circulation’ is calculated on the basis of the Capital Share Mechanism (CSM) which foresees the split of the total amount of issued banknotes in the euro area between the different national central banks of the euro area with respect to their share in the capital of the ECB (8% of the total value of the euro area banknotes in circulation is allotted to the ECB). Coins (which are in fact the liability of the central government) are added to the total amount of banknotes. The item ‘Cash’ held by the MFIs is deducted from the total amount of currency (banknotes and coins).
The contribution of the Slovenia to the euro area monetary aggregates does not represent monetary aggregates of Slovenia. The concept of residency is the one of the euro area. Due to the consolidation within the MFI sector on the level of euro area countries the aggregate M3 could become smaller than M2.
Table 1.2.: Consolidated Balance Sheet of the Monetary Financial Institutions
The table shows the end of the month consolidated balance sheet of Bank of Slovenia and other monetary financial institutions, presented in the tables 1.3. and 1.4. The bilateral claims and liabilities of the sectors S.122 and S.121 are netted out. On the liability side of the balance sheet the liabilities to the central government sector (S.1311) in certain items are excluded and are included in the remaining liabilities.
The item ‘Banknotes and coins’ is for series after 1 January 2007 calculated on the basis of the Capital Share Mechanism (CSM) which foresees to split of the total amount issued in the euro area between the different National central banks of the euro area with respect to their share in the capital of the ECB (8% of the total value of the euro area banknotes in circulation is allotted to the ECB). Coins (which are in fact the liability of the central government) are added to the total amount of banknotes.
Table 1.3.: Balance Sheet of the Bank of Slovenia
The table shows the Bank of Slovenia’s assets and liabilities at the end of month in line with the methodology of the ECB. According to the ECB’s methodology the item ‘Banknotes and coins’ includes the data of coins in circulation (which are in fact the liability of the central government) and excludes the data of issued payment notes, which are included in the remaining assets.
The item ‘Banknotes and coins’ is for series after 1 January 2007 calculated on the basis of the Capital Share Mechanism (CSM) which foresees to split of the total amount issued in the euro area between the different National central banks of the euro area with respect to their share in the capital of the ECB (8% of the total value of the euro area banknotes in circulation is allotted to the ECB). Coins are added to the total amount of banknotes.
Table 1.4.: Balance Sheet of other Monetary Financial Institutions
The table summarizes data on assets and liabilities of other Monetary Financial Institutions, i.e. banks, savings banks, savings and loans undertakings and money market funds, at the end of the month. Detailed survey of assets and liabilities of the monetary financial institutions is in the tables 1.5. and 1.6.
Table 1.5.: Selected claims of other Monetary Financial Institutions by sectors
The table shows claims from loans and debt securities of the Other Monetary Financial Institutions (from the table 1.4) broken down by domestic/foreign sectors, type of loans and domestic/foreign currency.
Table 1.6.: Selected liabilities of other Monetary Financial Institutions by sectors
The table shows liabilities from deposits and securities of the Other Monetary Financial Institutions (from the table 1.4) broken down by domestic/foreign sectors, type of deposits and domestic/foreign currency.
Table 1.7.: Balance sheet of the Bank of Slovenia – by instruments
The table shows the data of the balance sheet of the Bank of Slovenia, split by instruments of the monetary policy. The table is composed according to accounting rules of the ECB an differs from the table 1.3. Balance Sheet of the Bank of Slovenia, which is composed according to the statistical methodology of the ECB.
Table 1.8.: Investment funds
Methodology of investment fund statistics in Slovenia is based on Regulation (EC) No 958/2007 of the ECB of 27 July 2007 concerning statistics on the assets and liabilities of investment funds and Guideline of the ECB of 1 August 2007 on monetary, financial institutions and markets statistics (recast). Time series in tables are available from December 2008 on, when the new reporting of investment funds was introduced. The data is revised when publishing data for the next period.
Note 1: Financial sectors comprise Bank of Slovenia, other monetary financial institutions (banks, saving banks and monetary funds) and other financial institutions (other financial intermediaries, except insurance corporation and pension funds, financial auxiliaries and insurance corporations and pension funds).
Note 2: Non-financial sectors are formed by non-financial corporations, general government, households and non-profit institutions serving households.
Note 3: Monetary funds are included in the sector of other monetary financial institutions and not in the other financial intermediaries, where investment funds are classified.
This item consists of transferable deposits (sight deposits) and other deposits. Other deposits are deposits, which cannot be used for payments and cannot be exchanged for transferable deposits without significant constraints or extra costs. They comprise deposits with agreed maturity, certificates of deposits, which are non-tradable or whose tradability, although theoretically possible, is very limited and other non-transferable deposits.
Debt securities are short-term or long-term. Short-term ones include all instruments of monetary market with original maturity of one year or less. Long-term debt securities are securities with original maturity of more than one year and include bonds, instruments of monetary market with original maturity of more than one year and other debt securities. Interest-bearing securities are shown including interests. In case interests cannot be included with debt securities, they are shown separately under the item other assets.
The item includes shares and units/shares of investment fund. Shares are financial assets, which represent the right of ownership to the joint-stock companies. These financial assets usually give the owners the right to certain share in profit of the joint-stock companies and to certain share in their net assets when winding up. Units/shares of investment fund include units or shares of open-end and closed-end investment funds.
Under this item the claims on sold or mature investment, claims on Asset Management Company and trustee, interest and dividend claims, claims on securities' obligations, other corporate claims, accruals and prepaid expenditure are reported. Accruals and prepaid expenditure include deferred expenses or costs, short-term accrued revenues and also deferred interests. Financial derivatives are either financial assets or financial liabilities; in balance sheet they are recorded as unnetted.
The item includes loans borrowed, covering loans, repurchase agreements and other forms of loan as techniques and tools for managing the investments of investment funds.
Investment fund shares/units
Investment fund shares/units represent total liability to shareholders or investors of investment fund.
The item other liabilities include corporate liabilities of investment fund, namely liabilities from financial instruments' purchase, management liabilities, tax liabilities, liabilities of distribution of profits or other payments to holders of units or shareholders, other corporate liabilities, accruals and income collected in advance and financial derivatives. Accruals and income collected in advance include accrued costs or accrued charges and prepaid income. Under this item deferred interests are also reported.