From-whom-to-whom
presentation using Japan’s flow
of funds accounts
Presenter: Yoshiko Sato
Research and Statistics Department
Bank of Japan
Working Party on Financial Statistics
24-27 October 2011
Contents

Compilation of whom-to-whom (W-to-W) data

Basic method

Method for enhancement in loans
- Use of “Detailed Data of FFA”

Method for enhancement in debt securities

Further challenges
Bank of Japan
2/18
Compilation of whom-to-whom data
Importance of individual transactions data showing
interconnectedness among sectors or intersectoral
relationship (G20)
 Limitation of source data

・Usually, it is difficult to obtain data reported on a W-to-W basis.

Proposed framework for W-to-W matrix
・EC, IMF, OECD, UN, and WB [2009], 2008SNA
・IMF and ECB[2011], An Integrated Framework for Financial Flows and
Positions on a Whom-to-Whom Basis
・UNSD and ECB[2011],(draft) Handbook of National Accounting:
Financial Production, Flows and Stocks in the System of National Accounts.
Bank of Japan
3/18
Compilation of whom-to-whom data

Available source data on a W-to-W basis in Japan
・“Detailed Data of FFA” on loans and deposits
・It makes it possible to grasp who finances whom.

Our approaches
・First: Make a basic W-to-W matrix.
・Next: Consider enhancement in loans by using Detailed Data of FFA.
・Last: Consider enhancement in debt securities by specifying debtor
sectors based on types of debt securities.
Bank of Japan
4/18
Basic method

Balance sheet data format
NFC
Loans
Other sectors Sector total
Asset
Liab.
Asset
Liab.
Asset
Liab.
３０
６０
７０
４０
１００
１００
Debt Securities
Shares
Transaction
Total
NFC: Non Financial Corporations
Bank of Japan
5/18
Basic method

Recompose the data, and pick up one item (e.g. Loans)
Loans
NFC
Others
Sector
NFC
Liabilities
Total
Others
Sector
Assets
Total
Liab.
Liab.
Liab.
Asset
Asset
60
40
100
Asset
30
70
100
Debt
Securities
Shares
Transaction
Total
Bank of Japan
6/18
Basic method

Convert BS data into a W-to-W format
Assumptions are made that financial assets of a certain instrument category are
allocated to counterparty sectors in proportion to the share of liability of respective
sectors for the same instrument category.
<Loans>
Creditor
NFC
↓
Other sectors
Liabilities
total
Debtor→
NFC
Other sectors
Assets Total
18
12
30
42
28
70
60
40
100
・Do the same procedure for all the remaining items.
Bank of Japan
7/18
Basic method
Aggregate all the items into the full W-to-W matrix

Creditor
HH
↓ CG
LC
SSF
ROW
Private NFC
Public NFC
NPISH
CB
ODC
ICPF
OFC
FA
Debtor→
HH
CG
0
0
0
2
05,525
03,468
01,425
0
29,048
0
13,371
02,224
01,288
0
0
0
2,174,622
0
83,612
651,808
3,967
(100mil. yen)
LC
SSF
0
0
0
0
0
0
1
0
0 1,994
0 827
0 1,251
0 387
0 260,895
0 0 514230,325
0 188
010,482
0 3,916
0
7,509
0 4,825
0 1,578
0 0 30646,515
0
10
0 0 465567,826
0 144
0 0 0 79,394
0
19
00
0
11,535
221,161
242,053
035,376
056,467
0 129,139
ROW
Private NFCPublic NFC NPISH
0
34,586
0
0
0
1,787
0
0
0
0
0
0 895
4
11
1
0
034,910
0 4,349
0 24218,670
0
021,912
0 2,503
03,981 9,014
13,218
0
0
35,281
0
10,649
0 9,003
0 1,078
0
4,302
1,103
0
0
930
0
0
0 22,121
0 34289,312
183,537
4,963
0
0
130
0
084,482
0 9,797
0 86436,518
69,785
0
0
67,013
0
034,189
0
0 286 1,927
541
1,979
0
0
47,741
0
23,757
0 8,135
0
0
3,349
929
20,362
0
0
44,814
0
216
0
0
0
380
0
32
0
0 0
0 88,625
2,975
0
260
852,339
353,157
2,128,660
0 292 4034,310
0 0
0 22,863
54,565
0
16,488
170,130
0 683,271
0
365,285
718,162
5,108
1,533
1,638280,594 0
0 3,227,890
0 1,550,442 202,700
21,240
302,923
0 368,616
6,646
10,934 10,090
268,007
0
22,380
4,871
35,182
6,612
654,253
40,895
598,036
576,732
151,855
4,053
19,674
2,392
131,175
4,810
690,257
2,201,511 3,509,152
100,955 1,603,021
679,248
760,802
4,011
24,675
0
224,798
2,450
0
0
13,997
0
02,137
5,352
70,173
6,077
22,103
3,048
54,710
22
522,748
260,032
724,949
11,730
CB
ODC
ICPF
0
526,287 7,600,310
0
23,588
30,806
0
245,228
1 0
0
18
0 4,264 0 7,370
72,340 81,781
01,126
40,902
2,677 0
35,964
021
0
0 1,100
225,552 1,864,236
1,027
19,219
172
0
0
0 22,419 743 23,688
98,293379,709
652
0
0
0 10,320 173 3,082
234,805165,965
11,343
0
0
0
1,327 3,153
65 0
35
0
0
02,137
451,363
1,330,976
994
12
13,365
0
0
03,736 3,642
133,688
0
647
303,347
0 69,428
117,974
37454,028 11,063
0
0
424,247
05,219
32,580
0
0
6,428 0 2,021
54,838
0
3,225
621,573
306,098
15,112
592
0 333,893
0
0
31,156
74,021
491
36,485
00
0 166,820
24,501
0
6,999
159,889
938,682
0
47,681
2,373
0
0 1,930
6,338 865,433
534 254,471
0
158
9,955
172,404
1,775
324,803
306,488
1,571
435,182 1,094,629
2,741 1,132,933 2,874,242
563
3,972
87,720
14
4,256
30,600
33
46,294
40,759
1,106 1,563,696 2,880,812
7,584
802,248
794,047
6,522
694,656 1,065,819
28
2,687
26,381
Bank of Japan
OFC
FA
0
0
0
210,842
0
0 0
4
0 4,075
240,010 45,011
0 38,310
11 0 9,065
108
0 1,233
568 0 8,5906
0 13,097 0 173,902
0
0
0 1,704 0 57,762
33,683
605
0 1,652 0
984
142
0 10,8217 0 3,383
233
0 43,588
43,156
357
262,865
0 21,905
1,768 791 664,1241
0 4,408
151
2,236 0 93,771
0
0
0
0
0
0
0
0
0
0
0
0
0
Currency and deposits
0
0
0
562,554
0
6,698
0
4,092
0
186,334
0
99,672
0
214,650
0
3,575
7,458
47,603
1,341
104,155
14,964
51
824,385
Loans
299
80
273
●
5,363
●
1,445
●
1,863
152
1,634
0
572 897,249
14
0
324,089
49,043
1,865
112
3,806
0 200,818
2,452
15,189
0
63,467
1,444 640,946
9,654
68,389
4,428
526,330 7,771,387 4,332,221
652,243
0
19,622
201 104,579
1,420
82,980
4,541
315,007
0
4,728
6230,987
2,865199,477 0 47,443
61,505
21,894
51,654
137,598
19,167
6,398
1,315
170,380
66,037
343,281
2,925
3,364
2,119
22,437
17,172
131
1,533
2,375
81,034
8,283
35,698
492
21
333,054
1,038
153,555
23,817
795,664
228,673 2,281,256
782
119,568
185
255,094
649
317,394
462,594 2,468,275
5,722
329,799
128,061
537,574
0
41,060
Debt securities
Total W-to-W
matrix
14,138
49,038
32,210
453,261
62,444
325,729
77,768
412,130
13,383
17,069
423
51,780
1,422
370,844
56,980 1,552,992
119,075
819,562
80,701 1,042,948
939
7,895
7,335
2,490
1,258
6,999
2,750
11,196
777
1,642
27
24,289
15,763
18,553
106
8/18
Method for enhancement in loans

Use of Detailed Data of FFA in loans
・W-to-W matrix compiled by the basic method is
comprehensive but insufficient.
It rests upon a resource allocation assumption and lacks
any statistical evidence.
Source data on a W-to-W basis, if available, should be used.
・BOJ quarterly releases Detailed Data of FFA. It provides
figures on which financial sector supplies what amount of
loans to which sector.
- Therefore, it can be used for enhancement of the
basic matrix.
Bank of Japan
9/18
Method for enhancement in loans

Loan table is improved (shaded area).
(100mil. yen)
HH
HH
CG
LC
SSF
ROW
Private NFC
Public NFC
NPISH
CB
ODC
ICPF
OFC
FA
ODC
ICPF
OFC
CG
LC
SSF
ROW
Private NFCPublic NFC NPISH
CB
ODC
ICPF
OFC
FA
2
1
0
0
4
11
1
1
0
18
0
4
0
5,525
1,994
827
0
18,670
34,910
4,349
4,264
7,370
81,781
4,075
45,011
0
3,468
1,251
387
0
9,014
21,912
2,503
2,677
21
35,964
11
9,065
0
1,425
514
188
0
4,302
9,003
1,078
1,100
1,027
19,219
568
8,590
0
29,048
10,482
3,916
0
89,312
183,537
22,121
22,419
23,688
379,709
13,097
173,902
0
13,371
4,825
1,578
0
36,518
84,482
9,797
10,320
3,082
165,965
1,704
57,762
0
2,224
30
10
0
1,927
34,189
541
65
35
3,153
1,652
984
0
HH
CG
LC
SSF
ROW
Private
NFCPublic
NFC
NPISH
CB
ODC
ICPF
OFC
FA
1,288
465
144
0
3,349
8,135
929
994
12
13,365
7
3,383
0
2
1
0
0 380
4
1
1 647
0
18 357
0
4
0
0
0
19
0
0 11
32
0
303,347
262,865
0
0
18,670
34,91095,9234,34977,2134,26411,0637,370
81,78121,9054,075
45,011 7,458
0
2,149,0785,525
244,9311,994
257,805 827
85
386,267
2,028,033
424,247
664,124
0 5,9829,014
21,912 5,7682,503 1,1472,677 2,021 2154,838
35,964 2,236 1193,7719,065 1,341
0
96,7933,468 2,8701,251
123,341 387 4,974
137,133
0
4,302
19,21949,043 568
0
660,4631,425
374,977 514
605,671 188 511
164,085
531,9709,003
311,9251,078 2521,10074,0211,027
324,089
897,2498,59014,964
29,048 1,533
10,482 1,6383,916
0 2,450
89,31215,112
183,537 592
22,121 491
22,419
23,688
379,709 112
13,097 3,806
173,902
0
3,967
0
0
1,865
51
13,371
4,825
1,578
0
36,518
84,482
9,797
10,320
3,082
165,965
1,704
57,762
0
2,224
30
10
0
1,927
34,189
541
65
35
3,153
1,652
984
0
1,288
465
144
0
3,349
8,135
929
994
12
13,365
7
3,383
0
0
0
19
0
380
0
32
0
647
303,347
357
262,865
0
2,174,622
221,161
242,053
85
353,157 2,128,660
88,625
69,428
11,063
424,247
21,905
664,124
7,458
83,612
35,376
56,467
292
34,310
170,130
22,863
6,428
2,021
54,838
2,236
93,771
1,341
651,808
365,285
718,162
5,108
224,798
621,573
306,098
31,156
74,021
324,089
49,043
897,249
14,964
3,967
1,533
1,638
0
2,450
15,112
592
491
0
1,865
112
3,806
51
Bank of Japan
10/18
Method for enhancement in loans
Analysis of the loan table

2000
1990
CB
2010
HH
ODC
ROW
ICPF
OFC
NFC
GG
・The size of nodes represents the total amount of assets and liabilities within sectors.
・The thickness of lines represents the amount of exposures among sectors.
・Interconnectedness through loans are weakened from 2000 to 2010. The volume of
loans provided by ODC to NFC is decreased by 30%.
Bank of Japan
11/18
Method for enhancement in loans

Further analysis of the loan table; between ODC and ROW
- Direction can be analyzed -
Loans from ODC/ROW to ROW/ODC
80
The volume of loans between ODC
and ROW increased from 2000 to 2010
・In 2010, ODC borrows more
from ROW than in 2000.
・ROW borrows less from ODC
than in 2000.
（tril. Y en )
70
O D C →R O W
R O W →O D C
60
50
40
30
20
10
0
1990
2000
2010
Interconnectedness is enhanced mainly because of the increase of borrowings of ODC
from ROW, rather than that of ROW from ODC.
Bank of Japan
12/18
Method for enhancement in debt securities

W-to-W matrix for debt securities (issued by resident) is
compiled by specifying debtor sectors based on types of
debt securities.
Types of debt securities
Debtor sector
CP (s-term),
Bank debentures & Industrial securities (l-term)
Financial institutions & nonfiancial corporation
Treasury discount bills (s-term), Central
government securities and FILP bonds (l-term)
Central government & Fiscal Loan Fund
Local government securities
Local governments
Public corporation securities
Public corporation
Structured-financing instruments
Structured-financing special purpose companies
and trusts
Bank of Japan
13/18
Method for enhancement in debt securities

In Japan’s FFA, some public corporations are classified in
financial institutions, nonfinancial corporation or general
government. Public corporation securities issued by those
sectors are supposed to be issued by “Public corporation”
sector in this matrix.

The advantage of the method is that flow tables can be
compiled.
・In the basic method and in the method for enhancement
in loans, flow tables cannot be compiled because of the
difficulty in treating negative figures.
Bank of Japan
14/18
Method for enhancement in debt securities
– Positions –
End of June 2011(Preliminary)
Creditor
Financial
institutions
Nonfinancial
corporations
Debtor
Financial institutions &
Nonfinancial corporations
General government
Local
governments
Central
government
Private nonprofit
institutions serving
households
Households
Social security
funds
(100mil. yen)
Total
Overseas
828,962
55,748
2,099
0
97,346
25,218
22,595
21,048
1,053,016
short-term
114,257
17,869
0
0
17
0
0
0
132,143
long-term
714,705
37,879
2,099
0
97,329
25,218
22,595
21,048
920,873
Structured-financing special
purpose companies and trusts
179,272
28,838
0
0
420
0
0
5,566
214,096
Central government & Fiscal
Loan Fund
6,750,277
90,091
323,808
6,929
724,466
303,839
142,625
668,652
9,010,687
short-term
1,059,723
676
320,015
0
1
0
0
247,490
1,627,905
long-term
5,690,554
89,415
3,793
6,929
724,465
303,839
142,625
421,162
7,382,782
Local governments
536,642
24,981
1,132
5,401
73,235
13,638
59,364
1,274
715,667
Public corporation
521,267
39,118
1,595
5,561
104,683
5,927
33,340
29,492
740,983
8,816,420
238,776
328,634
17,891
1,000,150
348,622
257,924
726,032
11,734,449
Total
Bank of Japan
15/18
Method for enhancement in debt securities
– Flows –
2nd Quarter 2011(Preliminary)
Creditor
Financial
institutions
Nonfinancial
corporations
General government
Financial institutions &
Nonfinancial corporations
Local
governments
Central
government
Debtor
Private nonprofit
institutions serving
households
Households
Social security
funds
(100mil. yen)
Total
Overseas
15,609
-14,165
168
0
-2,018
-20
979
927
1,480
short-term
20,657
-4,522
0
0
7
0
0
0
16,142
long-term
-5,048
-9,643
168
0
-2,025
-20
979
927
-14,662
Structured-financing special
purpose companies and trusts
-7,748
-6,432
0
0
3
0
0
-379
-14,556
Central government & Fiscal
Loan Fund
81,299
-3,940
93,730
-27
-15,858
-9,420
-929
58,038
202,893
short-term
44,058
0
91,005
0
0
0
0
-8,128
126,935
long-term
37,241
-3,940
2,725
-27
-15,858
-9,420
-929
66,166
75,958
Local governments
5,173
136
-40
114
-960
-415
1,240
-239
5,009
Public corporation
6,577
23
28
281
-354
69
1,685
316
8,625
100,910
-24,378
93,886
368
-19,187
-9,786
2,975
58,663
203,451
Total
Bank of Japan
16/18
Further challenges

Basic method
・ Transactions within non-residents are not covered by definition of a
W-to-W framework. Therefore, the intra-sectoral transactions within
ROW should be controlled to zero.

Method for enhancement in loans
・The difference of the valuation method should be reconciled.
(FFA: market value basis, DD of FFA: book value basis)

Method for enhancement in debt securities
・The W-to-W matrix for debt securities has not yet been integrated into
the basic and loan-enhanced matrix, because the composition of debtor
sectors is asymmetric to creditor sectors (“Financial institutions &
nonfinancial corporations” are not separated each other).
・Additional W-to-W information by each type of securities is required.
Bank of Japan
17/18
Further challenges
Basic method has limitations for illustrating actual
intersectoral relationship.
In order to make W-to-W matrix fully competent,
steady efforts such as applying “Detailed Data of
FFA” or utilizing carefully compiled W-to-W
matrix for debt securities are critically important.
Bank of Japan
18/18
Thank you for your attention
Bank of Japan