MFI data collection (RATI)
Meeting with reporting entities
6 June 2013
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
1
Status of regulations and guidelines
in preparation
 ECB’s new requirements are known
 Preparation of new statistical regulations (BSI and MIR)
in final phase → expected to be adopted by the ECB
Governing Council in Q3/2013
 Updating of guidelines just in initial phase
 Regulation concerning statistics on holdings of securities
(ECB/2012/24) adopted on 17 November 2012 →
requires security-by-security reporting from MFIs
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
2
Changes in MFI data collection (RATI)
1. New classification of sectors
2. Undrawn credit facilities
3. New loan agreements: genuinely new agreements
and renegotiated agreements
4. Reporting of outstanding amounts of serviced loans
There will also be other new requirements in the
regulations with no impact on RATI reporting
NOTE: no changes in reporting of collateral
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
3
New classification of sectors:
minimum requirement
11101 Public non-financial corporations
11102 National private non-financial corporations
11103 Foreign controlled non-financial
corporations
112 Housing corporations
121 Central bank
1221 Deposit banks
1222 Other credit institutions
1223 Other monetary financial institutions, excl.
credit institutions
123 Money market funds (MMF)
1241 Investment funds (UCITS)
1242 Other collective investment schemes
125 Other financial intermediaries
126 Financial auxiliaries
127 Captive financial institutions and money
lenders
128 Insurance corporations
129 Pension funds
6.6.2013
RMTI
1311 Central government
1312 State government (not used in Finland)
1313 Local government
1314 Social security funds (other than Finland)
13141 Employment pension schemes (only
Finland)
13149 Other social security funds (only Finland)
141 Employers and own-account workers
143 Employees
144 Recipients of property and transfer income
15 Non-profit institutions serving households
Reporting at more precise
sublevel is also allowed
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
4
Sectoral classification of domestic entities
- Classification service for enterprise data collections -
 Statistics Finland produces a .csv file that can be
downloaded by reporting entities at
http://www.stat.fi/tup/yrluok/index_en.html /
 User ID and password are needed to open the file;
requests at rahoitus@tilastokeskus.fi
 File contents: Business ID, company name, old and new
sector codes (SL2000 and SL2012) and industry
identifier at two-digit level
 File updated at least once a month
 Brief description of the service on the website in Finnish,
English and Swedish
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
5
Sectoral classification of foreign entities (1/2)
 ECB maintains a list of MFIs, investment funds and
financial vehicle corporations engaged in securitisation
transactions (FVC)
http://www.ecb.int/stats/money/mfi/html/index.en.html
 EIOPA maintains a list of insurance corporations (S.128)
https://eiopa.europa.eu/publications/register-ofinsurance-undertakings/index.html
– Last update 1 January 2012
– Pension funds (S.129) to be added later, date not yet known
 LEI (legal entity identifier) in future?
– For identification of parties in financial transactions
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
6
Sectoral classification of foreign entities (2/2)
 Steps to classify sector of a foreign entity:
1. Counterparty’s home country
2. Counterparty’s sector – from the perspective of the
counterparty’s home country
 Loan granted to a private non-financial corporation
registered in Sweden:
1. Counterparty’s home country – Sweden (SE)
2. Counterparty’s sector – private non-financial corporation
(11102)
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
7
Other financial intermediaries (S.123)
subdivided in four sectors
1. S.1241 Investment funds (UCITS)
– Entities referred to in the UCITS directive (2009/65/EC)
2. S.1242 Other collective investment schemes
– Special investment funds and venture capital funds – investment limits more
loose/no investment limits
TIP: Foreign S.1241 Investment fund / UCITS, S1242 Special investment fund / NonUCITS
3. S.125 Other financial intermediaries
– Financial vehicle corporations engaged in securitisation transactions (FVC)
– Security and derivative dealers trading on their own account, if independent institutional
units
– Financial corporations engaged in lending (eg hire purchase, factoring, leasing)
4. S.127 Captive financial institutions and money lenders
– Pawnshops, instant loan companies
– Units that lend own funds or those of only one client
– Foreign controlled pure holding companies
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
8
Special cases
 International organisations
– Organisations identified via comprehensive organisation code list
– Organisation code is reported in field counterparty’s / issuer’s home country
Parallel codes enabled by the VIRATI package should no longer be used
RATI instructions (now 49 / 102) – extract:
Organisation
code
RATI code
Description
36214
1C
IMF (International monetary fund)
36212
4C
EIB (European Investment Bank)
36215
4S
ESM (Europian Stability Mechanism)
36211
5H
NIB (Nordic Investment Bank)
36219
6Y
Other International Organisations (financial institutions)
3629
6A
Other International Organisations (financial institutions)
 Standardised derivatives
Since counterparties are usually not identified, counterparty is reported as follows:
sector (derivatives exchange): 124 => 126, home country is the derivatives
exchange’s home country
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
9
Exceptional reporting by tail reporters
 Due to the introduction of the new classification of
sectors, quarterly reporters that have been granted
derogations, ie tail reporters must exceptionally report
RATI data also for January 2014
 Impact on the calculation of minimum reserves
 Minimum reserve base according to the December RATI
report is not used at all in calculating minimum reserve
requirements
 The January 2014 report is used for calculating minimum
reserve requirements for maintenance periods 3–5/2014
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
10
Undrawn credit facilities (1/2)
 Information needed for monetary analysis to explain eg
loan stock developments
 Requirement: sectoral and regional breakdown
 Requirement to be included in guidelines
 Currently submitted on FIN-FSA P report ”Undrawn
credit facilities” (P02, line 30, column 15)
 Originally ECB preferred definition in line with CRD,
which was not approved by the statistical committee so
that ECB-preferred definition is yet open
→ P data collection’s current definition continues to be valid
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
11
Undrawn credit facilities (2/2)
 Information collected in the LD record:
– Allocation of balance sheet items ”O” = off-balance sheet item
– Transaction ”P” = Undrawn credit facilities
• In tentative record structure ”C” (to be changed)
– Instrument begins with 4
– Purpose of use mandatory
– Sector mandatory
– Country code mandatory
– Conversion currency mandatory
 Information is reported in field Book value (field 32),
contains the undrawn amount
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
12
Undrawn credit facilities – example 1
EUR 200,000 housing loan agreed in month t
in Finland, EUR 50,000 drawn down in month t
Allocation of
balance
sheet items
Transaction
Instrument
Purpose
of loan
Sector
New
agreement
A
N
47
H
143
FI
EUR
200 000
New
drawdown
A
D
47
H
143
FI
EUR
50 000
Stock
A
S
47
H
143
FI
EUR
50 000
Undrawn
amount
O
P
47
H?
143
FI
EUR
150 000
6.6.2013
RMTI
Country
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
Currency
Book
value
13
Undrawn credit facilities – example 2
German private company has euro-denominated checking account
with an overdraft line of credit with limit EUR 100,000.
At the end of month t-1 the company has not used the credit line,
deposits in the account total EUR 25,000
Allocation of
balance sheet
items
Transaction
Instrument
Purpose
of loan
Sector
Country
Currency
Book
value
Stock
L
S
221
N
11102
DE
EUR
25 000
Undrawn
amount
O
P
43
N
11102
DE
EUR
100 000
At the end of month t the company has borrowed EUR 40,000
against the credit line
Allocation of
balance sheet
items
Transaction
Instrument
Purpose
of loan
Stock
A
S
43
N
Undrawn
amount
O
P
43
N
6.6.2013
RMTI
Sector
Country
Currency
11102
DE
EUR
40 000
11102
DE
EUR
60 000
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
Book
value
14
New loan agreements (1/3):
genuine new agreements and renegotiations
 Both for deepening monetary analysis and for stability
analysis: amount of new loans granted by MFIs to nonfinancial corporations and households
 New loan agreements (current transaction N) will be
divided in two parts:
– N01 = Genuine new loan agreements
– N02 = Renegotiated loan agreements
– Bank of Finland adds up (current N = N01 + N02)
 Transaction N remains in the data collection as the
transaction for new deposit agreements
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
15
New loan agreements (2/3):
genuine new loan agreements
 Genuine new loan agreements expand the MFI balance
sheet
 Genuine new loan agreements do not include:
– Agreements stemming from a change of bank
– Loans acquired/intermediated, incl. loans intermediated from
outside the MFI sector
– New agreement based on a combination of several loans
– Euro-conversions of loans denominated in currency other than
euro
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
16
New loan agreements (3/3):
renegotiated loan agreements
 Renewed or renegotiated agreements are new
agreements in line with the current definition which were
in the balance sheet at the end of the previous month
– Include also agreements that were in the balance sheet of
another bank/financial institution and
– Loans taken for the purpose of repaying another loan
 Renewed loan agreements where the loan amount is
also increased at the same time are reported in two
parts:
– Amount of increase → N01
– Share in the balance sheet of the previous month → N02
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
17
Communication and information provision
 Material on the changes will be published at:
http://www.suomenpankki.fi/en/tilastot/raportointiohjeet/Pages/raha_ja_pank
ki_2010.aspx
 First version of updated reporting instructions in Finnish by
30 August 2013
 Reporting entities will also be notified via email
 At least one meeting with reporting entities in autumn
 Possibility for bilateral meetings on request
 Questions and comments are welcome!
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
18
Other issues (1/2)
 Request for extra time
– Extra time may be requested until close of business on the last
submission date
 Please notify us on revisions in advance
 Please notify us via email on major changes to previous
month’s reporting
 Loans to and deposits by Finnish residents published on
a more detailed sectoral breakdown:
– Deposits:
http://www.suomenpankki.fi/en/tilastot/tase_ja_korko/Pages/talletukset_suomesta_sektoreittain_en.aspx
– Loans:
http://www.suomenpankki.fi/en/tilastot/tase_ja_korko/Pages/lainat_suomeen_sektoreittain_en.aspx
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
19
Other issues (2/2)
 Change of contact persons
– Please notify us via email (rahoitustilastot@bof.fi) so that the right
information and questions relating to reporting will reach the right
persons
– Administration of contact information in Itella’s DCS service under
User information
– Administration of sub-user Ids in Itella’s DCS service under
User information
 BIS statistics
– Objective to match statistics to supervisors’ information
→ Within some time frame, the reporting population of KOTI data
collection must be expanded or RATI data collection adjusted to
obtain the required information
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
20
Contact information
 Preferred email address
– rahoitustilastot@bof.fi
– tiimiMFI@bof.fi
 Members of the team:
Jyrki Lehtinen
Hanna Häkkinen
Jaakko Suni
Essi Tamminen
Annamari Pajunen
Katja Kelloniemi
Markus Aaltonen
Peter Halonen
6.6.2013
RMTI
SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND
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