The 12th OECD-NBS Workshop on
National Accounts
Research on Real Value-added Measure of the Finance Industry
in China (LU Feng, NBS)
Comments on paper by Roger Jullion, Statistics Canada
October 2008
Measuring output in the Finance Industry
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Evolution of international standards
NBS estimates of nominal output
NBS estimates of real output
Method used at Statistics Canada
Suggestions for further development
Statistics Canada • Statistique Canada
2016-07-27
Banking industry
 Measuring nominal output and value added at
NBS
• Value added as sum of incomes from production
• Output composed of net interest receivable + net
inter-bank transactions receivable + other bank output
• Intermediate inputs derived residually
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Statistics Canada • Statistique Canada
2016-07-27
Banking industry
 Real output estimates
• Each of the three output components deflated with
loan rates, deposit rates, offered rates and CPI
• There may be variations in the loan and deposit terms
that could affect the deflator
• NBS could consider weighting the various terms
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Statistics Canada • Statistique Canada
2016-07-27
Banking industry
 Method used at Statistics Canada
• FISIM estimated as interest receivable less interest payable
• Reference rate is chosen as the mid-point between the deposit
rate and the lending rate
• Allocation of FISIM between depositors and lenders is based on
loan and deposit levels and the reference rate
• Allocation over sectors is based on asset and liability levels from
the balance sheet accounts
• Real output is based on the growth of assets and liabilities
deflated with the overall CPI
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Statistics Canada • Statistique Canada
2016-07-27
Banking industry
 Suggestions for further development
• Research the reference rate approach
• Examine the volume of assets and liabilities approach
to project real banking output
• Look into whether transactions data are available for
the various banking outputs
 e.g. number of ATM transactions, number of loans, etc.
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Statistics Canada • Statistique Canada
2016-07-27
Insurance industry
 Measuring nominal output at NBS
• Premiums less claims
• Premium supplements???
 SNA 2008…use of expected claims
• Catastrophic events create volatility in claims and therefore
volatility in insurance output
• Use of expected claims results in smoother series which is more
reasonable
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Statistics Canada • Statistique Canada
2016-07-27
Insurance industry
 Real output estimates
• NBS using CPI and IPI as a deflator
• NBS could consider using deflated premiums
 Methods used at Statistics Canada
• Premiums earned + premium supplements – claims due
• Real output based on deflated premiums for non-life insurance
• Number of persons insured and deflated assets are used as a
volume projector for life insurance
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Statistics Canada • Statistique Canada
2016-07-27
Insurance industry
 Suggestions for further development
• Are premium supplements included in nominal
output?
• Consider using deflated premiums
• Examine the expected claims approach as suggested
by SNA 2008
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Statistics Canada • Statistique Canada
2016-07-27
Securities industry
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10
Measuring nominal output at NBS
Real output estimates
Methods used at Statistics Canada
Suggestions for further development
Statistics Canada • Statistique Canada
2016-07-27