Agenda item 6c
Financial institutions
Statistical Office of the Republic of Serbia
Prepared by Dusan Gavrilovic, dusan.gavrilovic@stat.gov.rs
Workshop on the Implementation of the 2008 SNA,
Kiev, 29 November – 2 December 2011
Organizational structure
The financial corporations sector can be divided into five following subsectors:
S.121 Central Bank
This includes National Bank of Serbia (NBS) as central and governing
monetary and credit institution in the financial system of Republic of Serbia.

S.122 Other monetary financial institutions (NACE 64.19)
This is the most important subsection among the financial institutions with
respect to the creation of GVA, and contains banks, i.e. depository financial
intermediaries, as the major FISIM producers.

S.123 Other financial intermediaries (NACE 64.9)
This subsection comprises financial leasing companies, investment funds
(excluding
fund managing companies) and other credit granting (non-depository)
companies.

Organizational structure, continued
S.124 Auxiliary financial services (NACE 66)
This includes the following enterprises:
• Agency for deposit insurance
• Central Securities Depository and Clearing House
• Securities Commission
• Belgrade Stock Exchange
• Companies engaged in securities brokerage and dealing
• Pension and Investment Fund managing companies,
• Diners club and North American Sureties (NAS)
• Other incorporated enterprises engaged in auxiliary financial services
(bureaux de change, investment advisory services, activities of insurance
agents and brokers etc.)


S.125 Insurance and pension funds (NACE 65)
Data sources

The major data source for all the calculations and derivation of
macroeconomic aggregates is the database of the Serbian Business
Registry Agency which comprises the register of all institutional units
engaged in financial intermediation together with the full set of the annual
financial statements of each enterprise.

Apart from annual financial statements, for the calculations related to the
banks and the NBS, the detailed NBS report on all the bookkeeping
accounts is available together with a special audit report on operations of
the NBS.

Almost all the variables needed for the calculation of NA aggregates are
derived directly from the financial statements
Data sources, continued

In the 2007 a survey on banks and insurance companies was launched in
order to collect regionalized data on employment, local units and wages and
salaries.

This survey contains also the questions about trade margins on foreign
exchange, current and capital transfers

It also covers regionalized data on deposits and loans, fees and
commissions (for banking industry) and gross premiums written (for
insurance business). Data are collected on municipal level and are used for
the compilation of regional accounts.
Output, intermediate consumption, GVA
National Bank of Serbia (NACE 64.11)




The output, IC and GVA of the NBS as the only unit of the subsector S.124
is calculated using the cost method according to the paragraph 3.63 of
ESA95 and the 448/98 Council Regulation.
Output comprises all the operating expenditures and costs of the NBS
including fees and commissions payable, compensation of employees and
consumption of fixed capital.
Output and IC do not include any kind of income or costs from financial
operations, non-operating and extraordinary incomes or expenditures.
All the output of the NBS is consumed and added to intermediate
consumption of the subsector S.122 - Other monetary financial institutions.
Output, intermediate consumption, GVA
Other monetary financial institutions (NACE 64.19)





This subsector represents the major GVA generator among the financial
institutions (about 67% of the total of GVA).
The biggest part of the output of these units comes from the income from
net interest margin or in the terminology of the NA - Financial Intermediation
Services Indirectly Measured (FISIM).
In Serbian National Account the FISIM is calculated using the formula given
in Council Regulation 295/2008 concerning structural business statistics
(Annex 6 on Credit Institutions).
The production value is calculated as the sum of FISIM, income from fees
and commissions receivable, trade margins on foreign exchange and
securities and other operating income (mainly rentals and sales of goods
and services).
Unfortunately, due to the lack of data the FISIM is still not allocated to the
user sectors and is included into the system via notional sector and
subtracted from the GDP of the whole economy.
Output, intermediate consumption, GVA
Other financial financial services except insurance and pension funding (NACE
64.2, 64.3 and 64.9)

Apart from financial leasing this group covers all other money lending activities
outside the banking system including factoring services and pawn brokers.

Except for the investment funds and financial leasing companies the financial
reporting format is exactly the same as for the non-financial corporations. The value
of the output and IC is measured using the same items and formula for the nonfinancial corporations.

Thus, the output is measured as net income from sales of goods and services with
cost of goods for resale subtracted. Output includes also other operating income such
as rentals but excludes any kind of non-operating or extraordinary income.

For financial leasing companies and other credit granting institutions the main source
of the output is the FISIM which is added to the above mentioned elements of output.
The FISIM is calculated as difference between interest payable and interest
receivable.
Output, intermediate consumption, GVA
64.30 Trusts, funds and similar financial entities and 64.20 Holding companies







The output of the investment funds is calculated in a specific way due to the specific nature
of these institutions which are in fact notional institutional units.
investment funds in Serbia are open-ended non-incorporated (common) funds constituted
under the law of contract and managed by management companies and with no paid
employees.
They are not recognized as legal persons and are treated as pools of assets with no legal
capacity but they are legally separated from the shareholders and companies that manage
them.
However, according to the Law on investment funds and bookkeeping regulation, the fund
can incur costs (which diminish net worth of the fund) and operating income such as
rentals and this requires treatment in line with NA principles of recording of the financial
transactions.
So, the value of operating costs (cost of services of the managing company, costs related
to the purchases and sales of securities, costs of custodial services and other operating
costs) are imputed to the funds as the output and the same figure is treated as the IC so
the GVA (and operating surplus as well) equals zero.
At this moment no trusts, estates or agency accounts are operating. Only mutual and
closed-end investment funds.
Only few “pure” holding companies are operating in Serbia and this group of financial
institutions are under closer examination for proper sectorization.
Output, intermediate consumption, GVA
Insurance and pension funding (NACE 65)

The output of insurers is calculated using formula defined in the ESA95
Annex on Insurance and Commission Regulation 295/2008 (Annex 5) as
the sum of earned premiums plus premium supplements (portfolio
investment income) plus other operating income minus gross claims
payments minus gross change in the provision for outstanding claims and
minus changes in other insurance provisions.

Claims management expenses are not included in claims incurred and
represent the part of IC together with the acquisition, management costs,
costs related to the investments of the technical reserves and other
operating costs excluding consumption of fixed capital (CFC), personnel
costs and taxes on production.

The intermediate consumption apart from other regular, operating
expenditure (excluding personnel costs) also includes a reinsurance
balance.

Reinsurers are treated the same way as direct insurers regarding
calculation of the output and IC.
Output, intermediate consumption, GVA

The output of the pension funds is calculated on the basis of the Annex 7 of the
Council Regulation 295/2008.

Pension funds in Serbia are organized as open-ended non-incorporated (common)
funds constituted under the law of contract and managed by management companies
and with no paid employees.

In the production account the production value is defined as follows: pension
contributions less insurance premiums payable plus investment income plus other
income plus insurance claims receivable less total expenditure on pensions less net
change in technical provisions.

Intermediate consumption of the pension funds comprises payments for managing
services of the fund managing companies, costs of services provided to the members
of the fund, other operating costs and fees charged with pension contributions.

Gross technical provisions represent the balancing item with no income appropriated
to general reserve and zero value of GVA.
Output, intermediate consumption, GVA




Auxilliary financial service providers are also covered with the whole set of
financial statements (including small businesses) which are the main data
source for derivation of NA aggregates.
In the case of security brokerage and dealing the output of companies
engaged in these activities includes next to commissions and fees also the
net margin on sales of securities.
Output of the pension fund managing companies comprises commissions
for management of funds and fees charged on pension contributions and
services provided to the members of the fund.
Output of investment fund managing companies comprises commissions
and fees for management of the funds, for transactions with securities and
other operating income.