Progress status of the
Quarterly Institutional
Accounts project
OECD Working Party on Financial Statistics
Conference centre, La Muette
December, 2010
CENTRAL BANK OF CHILE
DECEMBER 2010
Topics
2
I.
Introduction
II.
Progress status of the project
III.
Preliminary results
IV.
Upcoming activities
CENTRAL BANK OF CHILE
DECEMBER 2010
I. Introduction
CENTRAL BANK OF CHILE
DECEMBER 2010
An initiative to develop measurement of
institutional accounts on a quarterly basis has been
underway in the CBCh since 2008.
 This initiative is based on the experience gained with
the annual measurements performed
Department of National Accounts.
by
the
 It has also benefited from the methods and sources
of information used by the Bank of Spain for
computing financial accounts.
 This presentation portrays the progress status and
preliminary results of the project, which are still
being assessed and analyzed with relation to balance
sheet structures and financial transactions.
4
CENTRAL BANK OF CHILE
DECEMBER 2010
II. Progress status of the
project
CENTRAL BANK OF CHILE
DECEMBER 2010
In executing the work schedule of the project, methods,
processes and a work team have been created...
6

Methodologies:
 The starting point is the methodology used for performing annual
compilations.
 This individual sectoral compilation also breaks down data by
sectors and financial instruments.
 The only source of information used are individual complete
financial statements.

Processes:
 Processes have been developed for managing basic information
and for linking it with the method for structuring accounts.
 An IT platform was implemented, which gathers and standardizes
the accounts related to each sector, and then proceeds to their
synthesis, compatibilization and dissemination.
CENTRAL BANK OF CHILE
DECEMBER 2010
In executing the work schedule of the project, methods,
processes and a work team have been created...
Work Team:

A work team was created and assigned specific responsibilities within each
sector (Government, Finances, Corporations), and in relation with financial
instruments (securities market).
At present, preliminary progress has been made on Institutional
Quarterly Accounts where financial statements cover the 2008q1–
2009q4 period.
7
CENTRAL BANK OF CHILE
DECEMBER 2010
III. Preliminary results
CENTRAL BANK OF CHILE
DECEMBER 2010
Financial balance sheet structure at the institutional
sector level
CENTRAL BANK OF CHILE
DECEMBER 2010
The balance sheet of the Chilean households shows that
its main assets are the technical reserves of life
insurances and pension funds.
Figure 1. Comparison of Household sector balance sheet of OECD countries.
Detailed financial assets. Percentage structure.
100
90
80
70
60
50
40
30
20
HIGH similarity
Currency and deposits
Mutual fund shares
10
MEDIUM similarity
Debt securities
Reserves
CENTRAL BANK OF CHILE
LOW similarity
Shares and other equity
Other accounts
DECEMBER 2010
Mexico
Italy
Germany
Slovak
Republic
Greece
Slovenia
Czech
Republic
Estonia
Austria
Spain
Korea
Portugal
Hungary
Finland
Poland
Belgium
Norway
United
States
France
Ireland
Switzerland
United
Kingdom
Sweden
Netherlands
Chile
0
Denmark
10
The balance sheet of Chile’s General government shows
a significant holding of securities and deposits.
Figure 2. Comparison of General government sector balance sheet of OECD
countries.
Detailed financial assets. Percentage structure.
100
90
80
70
60
50
40
30
20
HIGH similarity
Currency and deposits
11
MEDIUM similarity
Debt securities
Loans
CENTRAL BANK OF CHILE
LOW similarity
Shares and other equity
DECEMBER 2010
Other accounts
Mexico
Netherlands
Switzerland
United
Kingdom
Italy
Iceland
Hungary
Poland
France
Slovenia
Austria
Czech
Republic
Ireland
Germany
Sweden
Luxembourg
Belgium
Finland
Slovak
Republic
Denmark
Norway
Portugal
Estonia
Greece
Spain
Korea
Chile
United
States
Japan
0
Canada
10
The main asset component of non-financial corporations
are commercial loans and holdings of shares and other
equity.
Figure 3. Balance sheet of the Chilean Non-financial Corporate sector.
Detailed financial assets and liabilities. Percentage structure.
100
90
80
70
60
50
40
30
20
10
0
Financial assets
Currency and deposits
Loans
Mutual fund shares
Other accounts
12
CENTRAL BANK OF CHILE
Liabilities
Debt securities
Shares and other equity
Reserves
DECEMBER 2010
The financial sector holds an asset portfolio composed
mainly of loans (46%) and securities other than shares
(29%).
Figure 4. Balance sheet of the Chilean Financial Corporate sector.
Detailed assets and liabilities. Percentage structure.
100
90
80
70
60
50
40
30
20
10
0
Financial assets
Currency and deposits
Loans
Mutual fund shares
Other accounts
13
CENTRAL BANK OF CHILE
Liabilities
Debt securities
Shares and other equity
Reserves
DECEMBER 2010
Preliminary evidence of the financial and economic
crisis in the accounts of the Household sector
CENTRAL BANK OF CHILE
DECEMBER 2010
Household debt shrunk from 62% of disposable income
by early 2008, to 58% during the height of the crisis.
Figure 5. Debt/Income ratio of Households and changes in
disposable income. Percentage.
16
62.0
61.5
14
61.0
60.5
12
60.0
10
59.5
8
59.0
58.5
6
58.0
4
57.5
2
57.0
0
56.5
I
III
II
IV
2008
Debt/ Disposable income ratio (%)
15
CENTRAL BANK OF CHILE
I
III
II
IV
2009
Annual change of disposable income (%)
DECEMBER 2010
In 2008, pension funds losses from revaluations
amounted to 13% of GDP.
Figure 6. Changes in Pension fund reserves.
Billions of pesos.
6000
70000
4000
60000
2000
50000
0
40000
-2000
30000
-4000
20000
-6000
10000
-8000
0
I
II
III
IV
I
2008
II
III
2009
Revaluations
Other changes in volume
Financial transactions
Closing financial balance sheet
16
CENTRAL BANK OF CHILE
DECEMBER 2010
IV
During 2009, a gradual return occurred towards
investments offering a higher return, to the detriment of
securities and deposits holdings.
Figure 7. Financial transactions of Households.
Billions of pesos.
2,500
2,000
1,500
1,000
500
0
IV
-500
I
II
III
2008
IV
2009
-1,000
-1,500
-2,000
17
Currency and deposits & Debt securities
Shares and other equity & Mutual fund shares
CENTRAL BANK OF CHILE
DECEMBER 2010
III. Upcoming activities
CENTRAL BANK OF CHILE
DECEMBER 2010
In the coming months:
19

Work will continue in determining sectoral counterparts for
financial instruments, bonds, shares, and trade credit.

A comprehensive assessment will be carried out to check the
consistency of financial and non-financial accounts, mainly
for the Household and Non-financial Corporate sectors.

Progress will continue to be done as to the extension of
available time series, to cover from the first quarter of 2005
to the second quarter of 2010.

Publication of this new statistic is projected for the second
quarter of next year.
CENTRAL BANK OF CHILE
DECEMBER 2010
Progress status of the
Quarterly Institutional
Accounts project
OECD Working Party on Financial Statistics
Conference centre, La Muette
December, 2010
CENTRAL BANK OF CHILE
DECEMBER 2010