Statistics on NonBank Financial Sector Experience of Central

Statistics on Non-Bank Financial Sector: Experience of Central Bank of Turkey Aycan Ozek Statistics Department Deputy Director Joint National Bank of the Republic of Macedonia and ECB Seminar on Statistics October 2 -5, 2013 Skopje

Outline 1. Changing Environment 2. CBT’s Experience - Other Financial Intermediaries - Financial Auxiliaries - Insurance Corporations and pension Funds 3. Future Work

Changing Environment Importance of Information - Moderate financial crisis - Better management of financial crisis New approaches in data compilation - Flexible to anticipate - Compatible data sets - International initiatives in data gaps Changing perspective of central banking - Role of central bankers as statisticians - Compilation of monetary and financial statistics - Room for improvement in data quality - Increased data requirements

Changing Environment Emerging Statistical Needs: Move from traditional data collection systems to emerging statistical needs (G-20 data gaps initiative): ØStrengthening the coverage of balance sheets ØFlow of funds data ØData on non-bank financial institutions ØMore timely and comparable statistics

Changing Environment The Need for Non-Bank Financial Institutions’ Data: • G-20 Data Gaps Initiative • Reporting requirements from international institutions (OECD, BIS) • Harmonization with international standards (ESA 95, MFSM)

CBT’s Experience Traditional Data Sources : Supervisory Reporting Forms Central Bank Accounts Banking Data Money Market Data Balance Sheet / Accounting Records

CBT’s Experience New Data Sources: Government Finance Statistics Non-Bank Financial Sector Monetary Sector (enlarged)

CBT’s Experience CBT Classification of Financial Corporations (S. 12): -Central Bank -Other Monetary Financial Institutions -Non-Bank Financial Institutions - Financial Intermediaries - Financial Auxiliaries - Insurance Corporations and Pension Funds

Other Financial Intermediaries (S. 123) in ESA 95: ‘ …. All financial corporations which are principally engaged in financial intermediation by incurring liabilities in forms other than currency, deposits and/or close substitutes for deposits from institutional units other than monetary financial institutions, or insurance technical reserves. ’ (paragraph 2. 53)

Other Financial Intermediaries Comparison between other monetary financial institutions and OFIs MFIs OFIs Liabilities - from non MFIs other than deposits and / or close substitutes for deposits currency, deposits and / or close substitutes for deposits

Other Financial Intermediaries Institutional Units in S. 123: • financial leasing corporations • personal or commercial finance corporations • factoring corporations • security and derivative dealers (on own account) • venture and development capital companies • export and import financing companies • financial vehicle corporations, created to be holders of securitized assets • financial intermediaries which receive deposits or close substitutes for deposits from MFI´s

Other Financial Intermediaries COVERAGE OF OTHER FINANCIAL INTERMEDIARIES Financial Leasing Companies 31 Factoring Companies 74 Finance Companies 12 Mutual Funds 685 TOTAL Source : BRSA, CMB 802

Other Financial Intermediaries Data Sources for S. 123: • Unified Chart of Accounts of Financial Leasing, Factoring and Finance Companies compiled by BRSA • Capital Market Board data set for Investment Funds • Data on holder sectors of investment funds compiled by Central Registry Agency

Other Financial Intermediaries Thousand TRY 2012 Financial corporations Monetary financial institutions Central Bank Other monetary financial institutions S. 121+S. 122 S. 121 S. 122 S. 123 S. 124 S. 125 1. 729. 127. 699 1. 584. 998. 314 253. 637. 684 1. 331. 360. 630 59. 274. 639 53. 652. 937 31. 201. 810 36. 965. 494 0 0 34. 297. 820 0 0 0 Other financial Financial auxiliaries intermediaries Insurance corporations and pension funds Total Stocks of financial instruments Financial assets Monetary gold and SDRs Monetary gold Special drawing rights Currency and deposits Currency Transferable deposits Other deposits Securities other than shares 2. 667. 674 0 0 237. 696. 503 211. 525. 065 6. 858. 542 204. 666. 523 6. 718. 431 7. 690. 588 11. 762. 419 13. 509. 156 13. 501. 788 790. 220 12. 711. 568 5. 646 1. 401 321 172. 986. 327 160. 923. 102 0 160. 923. 102 479. 432 464. 642 11. 119. 152 51. 201. 019 37. 100. 175 6. 068. 322 31. 031. 853 6. 233. 353 7. 224. 545 642. 946 458. 642. 356 434. 281. 643 177. 164. 873 257. 116. 770 2. 794. 499 12. 590. 577 8. 975. 638 455. 902. 888 0 431. 545. 510 2. 736. 133 177. 164. 873 0 254. 380. 637 2. 736. 133 2. 794. 499 0 12. 587. 241 3. 336 8. 975. 638 0 901. 684. 725 850. 643. 893 32. 603. 352 818. 040. 541 45. 982. 383 4. 818. 840 239. 609 34. 447. 664 29. 057. 632 45. 424 29. 012. 209 1. 664. 956 1. 783. 314 1. 941. 762 34. 200. 467 29. 057. 632 45. 424 29. 012. 209 1. 664. 956 1. 783. 314 1. 694. 565 n. a n. a 247. 197 - - - - 59. 690. 957 22. 524. 587 0 22. 524. 587 2. 114. 370 26. 769. 618 8. 282. 383 Securities other than shares, excluding financial derivatives Financial derivatives Loans Shares and other equity, excluding mutual funds shares Mutual funds shares Insurance technical reserves Other accounts receivable

Other Financial Intermediaries Thousand TRY 2012 Financial corporations Total Monetary financial institutions Central Bank Other monetary financial institutions Other financial intermediaries Financial auxiliaries Insurance corporations and pension funds S. 121+S. 122 S. 121 S. 122 S. 123 S. 124 S. 125 1. 744. 007. 371 1. 624. 828. 425 246. 661. 396 1. 378. 167. 029 54. 662. 143 24. 801. 461 39. 715. 342 1. 059. 702. 174 1. 054. 960. 214 223. 328. 150 831. 632. 064 0 4. 741. 961 0 60. 525. 482 0 0 305. 842. 197 144. 528. 524 161. 313. 673 0 0 0 693. 334. 495 688. 592. 534 18. 274. 144 670. 318. 391 0 4. 741. 961 0 50. 444. 486 47. 255. 597 0 47. 255. 597 3. 085. 139 103. 750 0 46. 092. 164 42. 908. 577 0 42. 908. 577 3. 085. 139 98. 448 0 4. 347. 020 0 5. 301 0 Stocks of financial instruments Financial Liabilities Currency and deposits Currency Transferable deposits Other deposits Securities other than shares, excluding financial derivatives Financial derivatives Loans n. a 4. 347. 020 n. a 223. 094. 385 186. 564. 511 1. 379. 950 185. 184. 561 35. 697. 805 661. 004 171. 065 327. 419. 755 285. 858. 623 21. 581. 843 264. 276. 781 12. 476. 448 11. 400. 693 17. 683. 990 319. 403. 191 285. 858. 623 21. 581. 843 264. 276. 781 4. 459. 884 11. 400. 693 17. 683. 990 n. a 0 0 0 8. 016. 564 n. a 0 Insurance technical reserves 19. 166. 818 - - - 19. 166. 818 Other accounts payable 64. 179. 753 50. 189. 480 371. 454 49. 818. 026 3. 402. 751 7. 894. 053 2. 693. 469 Shares and other equity, excluding mutual funds shares Mutual funds shares

Financial Auxiliaries Financial Auxiliaries (S. 124) in ESA 95: ‘ …. All financial corporations which are principally engaged in auxiliary financial activities, that is to say activities closely related to financial intermediation but which are not financial intermediation themselves. ’ (paragraph 2. 57)

Financial Auxiliaries Institutional Units in S. 124: • • insurance brokers, insurance and pension consultants, etc • corporations that manage the issue of securities • corporations whose principal function is to guarantee, by indorsement, bills loan brokers, security brokers, investment advisers, etc. and similar instruments • corporations which arrange derivative instruments • corporations providing infrastructure for financial markets • central supervisory authorities • managers of pension funds, mutual funds, etc. • corporations providing stock exchange, insurance exchange

Financial Auxiliaries COVERAGE OF FINANCIAL AUXILIARIES Savings Deposit Insurance Fund 1 Capital Market Dealer Companies 97 98 TOTAL Source : SDIF, CMDC Association

Financial Auxiliaries Thousand TRY 2012 Financial corporations Total Monetary financial institutions Central Bank Other monetary financial institutions Other financial intermediaries Financial auxiliaries Insurance corporations and pension funds S. 121+S. 122 S. 121 S. 122 S. 123 S. 124 S. 125 1. 729. 127. 699 1. 584. 998. 314 253. 637. 684 1. 331. 360. 630 59. 274. 639 53. 652. 937 31. 201. 810 36. 965. 494 0 0 34. 297. 820 0 0 0 Stocks of financial instruments Financial assets Monetary gold and SDRs Monetary gold Special drawing rights Currency and deposits Currency Transferable deposits Other deposits Securities other than shares 2. 667. 674 0 0 237. 696. 503 211. 525. 065 6. 858. 542 204. 666. 523 6. 718. 431 7. 690. 588 11. 762. 419 13. 509. 156 13. 501. 788 790. 220 12. 711. 568 5. 646 1. 401 321 172. 986. 327 160. 923. 102 0 160. 923. 102 479. 432 464. 642 11. 119. 152 51. 201. 019 37. 100. 175 6. 068. 322 31. 031. 853 6. 233. 353 7. 224. 545 642. 946 458. 642. 356 434. 281. 643 177. 164. 873 257. 116. 770 2. 794. 499 12. 590. 577 8. 975. 638 455. 902. 888 0 431. 545. 510 2. 736. 133 177. 164. 873 0 254. 380. 637 2. 736. 133 2. 794. 499 0 12. 587. 241 3. 336 8. 975. 638 0 901. 684. 725 850. 643. 893 32. 603. 352 818. 040. 541 45. 982. 383 4. 818. 840 239. 609 34. 447. 664 29. 057. 632 45. 424 29. 012. 209 1. 664. 956 1. 783. 314 1. 941. 762 34. 200. 467 29. 057. 632 45. 424 29. 012. 209 1. 664. 956 1. 783. 314 1. 694. 565 n. a n. a 247. 197 - - - - 59. 690. 957 22. 524. 587 0 22. 524. 587 2. 114. 370 26. 769. 618 8. 282. 383 Securities other than shares, excluding financial derivatives Financial derivatives Loans Shares and other equity, excluding mutual funds shares Mutual funds shares Insurance technical reserves Other accounts receivable

Financial Auxiliaries Thousand TRY 2012 Financial corporations Total Monetary financial institutions Central Bank Other monetary financial institutions Other financial intermediaries Financial auxiliaries Insurance corporations and pension funds S. 121+S. 122 S. 121 S. 122 S. 123 S. 124 S. 125 1. 744. 007. 371 1. 624. 828. 425 246. 661. 396 1. 378. 167. 029 54. 662. 143 24. 801. 461 39. 715. 342 1. 059. 702. 174 1. 054. 960. 214 223. 328. 150 831. 632. 064 0 4. 741. 961 0 60. 525. 482 0 0 305. 842. 197 144. 528. 524 161. 313. 673 0 0 0 693. 334. 495 688. 592. 534 18. 274. 144 670. 318. 391 0 4. 741. 961 0 50. 444. 486 47. 255. 597 0 47. 255. 597 3. 085. 139 103. 750 0 46. 092. 164 42. 908. 577 0 42. 908. 577 3. 085. 139 98. 448 0 4. 347. 020 0 5. 301 0 Stocks of financial instruments Financial Liabilities Currency and deposits Currency Transferable deposits Other deposits Securities other than shares, excluding financial derivatives Financial derivatives Loans n. a 4. 347. 020 n. a 223. 094. 385 186. 564. 511 1. 379. 950 185. 184. 561 35. 697. 805 661. 004 171. 065 327. 419. 755 285. 858. 623 21. 581. 843 264. 276. 781 12. 476. 448 11. 400. 693 17. 683. 990 319. 403. 191 285. 858. 623 21. 581. 843 264. 276. 781 4. 459. 884 11. 400. 693 17. 683. 990 n. a 0 0 0 8. 016. 564 n. a 0 Insurance technical reserves 19. 166. 818 - - - 19. 166. 818 Other accounts payable 64. 179. 753 50. 189. 480 371. 454 49. 818. 026 3. 402. 751 7. 894. 053 2. 693. 469 Shares and other equity, excluding mutual funds shares Mutual funds shares

Financial Auxiliaries Data Sources for S. 124: • Unified Financial Reporting System of Capital Market Dealer Companies compiled from Capital Market Dealer’s Association • Detailed balance sheet items of Savings Deposit Insurance Fund

Insurance Corp. and Pension Funds Insurance Corporations and Pension Funds (S. 125) in ESA 95: ‘ …. All financial corporations which are principally engaged in financial intermediation as the consequence of the pooling of risks. ’ (paragraph 2. 60)

Insurance Corp. and Pension Funds Institutional Units in S. 125: • • • insurance corporations reinsurance corporations (autonomous) pension funds

Insurance Corp. and Pension Funds Data Sources for S. 125: • Financial reports of Insurance Companies and Pension Funds compiled by Treasury COVERAGE OF INSURANCE COMPANIES AND PENSION FUNDS Insurance Companies 41 Reinsurance Companies 1 Pension Funds 17 TOTAL Source : Undersecratariat of Treasury 59

Insurance Corp. and Pension Funds Thousand TRY 2012 Financial corporations Other financial Financial auxiliaries intermediaries Insurance corporations and pension funds Total Monetary financial institutions Central Bank Other monetary financial institutions S. 121+S. 122 S. 121 S. 122 S. 123 S. 124 S. 125 1. 729. 127. 699 1. 584. 998. 314 253. 637. 684 1. 331. 360. 630 59. 274. 639 53. 652. 937 31. 201. 810 36. 965. 494 0 0 34. 297. 820 0 0 0 Stocks of financial instruments Financial assets Monetary gold and SDRs Monetary gold Special drawing rights Currency and deposits Currency Transferable deposits Other deposits Securities other than shares 2. 667. 674 0 0 237. 696. 503 211. 525. 065 6. 858. 542 204. 666. 523 6. 718. 431 7. 690. 588 11. 762. 419 13. 509. 156 13. 501. 788 790. 220 12. 711. 568 5. 646 1. 401 321 172. 986. 327 160. 923. 102 0 160. 923. 102 479. 432 464. 642 11. 119. 152 51. 201. 019 37. 100. 175 6. 068. 322 31. 031. 853 6. 233. 353 7. 224. 545 642. 946 458. 642. 356 434. 281. 643 177. 164. 873 257. 116. 770 2. 794. 499 12. 590. 577 8. 975. 638 455. 902. 888 0 431. 545. 510 2. 736. 133 177. 164. 873 0 254. 380. 637 2. 736. 133 2. 794. 499 0 12. 587. 241 3. 336 8. 975. 638 0 901. 684. 725 850. 643. 893 32. 603. 352 818. 040. 541 45. 982. 383 4. 818. 840 239. 609 34. 447. 664 29. 057. 632 45. 424 29. 012. 209 1. 664. 956 1. 783. 314 1. 941. 762 34. 200. 467 29. 057. 632 45. 424 29. 012. 209 1. 664. 956 1. 783. 314 1. 694. 565 n. a n. a 247. 197 - - - - 59. 690. 957 22. 524. 587 0 22. 524. 587 2. 114. 370 26. 769. 618 8. 282. 383 Securities other than shares, excluding financial derivatives Financial derivatives Loans Shares and other equity, excluding mutual funds shares Mutual funds shares Insurance technical reserves Other accounts receivable

Insurance Corp. and Pension Funds Thousand TRY 2012 Financial corporations Total Monetary financial institutions Central Bank Other monetary financial institutions Other financial intermediaries Financial auxiliaries Insurance corporations and pension funds S. 121+S. 122 S. 121 S. 122 S. 123 S. 124 S. 125 1. 744. 007. 371 1. 624. 828. 425 246. 661. 396 1. 378. 167. 029 54. 662. 143 24. 801. 461 39. 715. 342 1. 059. 702. 174 1. 054. 960. 214 223. 328. 150 831. 632. 064 0 4. 741. 961 0 60. 525. 482 0 0 305. 842. 197 144. 528. 524 161. 313. 673 0 0 0 693. 334. 495 688. 592. 534 18. 274. 144 670. 318. 391 0 4. 741. 961 0 50. 444. 486 47. 255. 597 0 47. 255. 597 3. 085. 139 103. 750 0 46. 092. 164 42. 908. 577 0 42. 908. 577 3. 085. 139 98. 448 0 4. 347. 020 0 5. 301 0 Stocks of financial instruments Financial Liabilities Currency and deposits Currency Transferable deposits Other deposits Securities other than shares, excluding financial derivatives Financial derivatives Loans n. a 4. 347. 020 n. a 223. 094. 385 186. 564. 511 1. 379. 950 185. 184. 561 35. 697. 805 661. 004 171. 065 327. 419. 755 285. 858. 623 21. 581. 843 264. 276. 781 12. 476. 448 11. 400. 693 17. 683. 990 319. 403. 191 285. 858. 623 21. 581. 843 264. 276. 781 4. 459. 884 11. 400. 693 17. 683. 990 n. a 0 0 0 8. 016. 564 n. a 0 Insurance technical reserves 19. 166. 818 - - - 19. 166. 818 Other accounts payable 64. 179. 753 50. 189. 480 371. 454 49. 818. 026 3. 402. 751 7. 894. 053 2. 693. 469 Shares and other equity, excluding mutual funds shares Mutual funds shares

CBT’s Experience: Financial Assets of Non-Bank Financial Sector

CBT’s Experience: Financial Liabilities of Non-Bank Financial Sector

CBT’s Experience FINANCIAL SECTOR RATIOS IN PERCENT OF GDP Total Assets in Millions of TRY In Percentage of as of 2012 GDP Monetary Financial Intitutions 1. 584. 998 111, 9% Other Financial Intermediaries 59. 275 4, 2% Financial Auxiliaries 53. 653 3, 8% Insurance Companies and Pension Funds 31. 202 2, 2% Source: CBT, Turkstat

CBT’s Experience Asset Composition of Non-Bank Financial Institutions

CBT’s Experience Liability Composition of Non-Bank Financial Institutions

CBT’s Experience Periodic Reports on Non-Bank Financial Sector • OECD Institutional Investors’ Survey • Financial Accounts (OECD, Eurostat, CBT web site) • Statistics on Non-Bank Financial Sector (CBT web site)

• Venture Capital Companies • Asset Leasing Companies • Aggregating financial assets and liabilities of non-bank financial corporations SNA and ESA Revisions • Pension Mutual Funds Other Financial Corporations Survey Strengthening Coverage of OFI Future Work • Disaggregation of Non-MMF Investment Funds from OFIs • Disaggregation of Insurance Companies and Pension Funds

PLEASE CONTACT FOR FURTHER INFORMATION: AYCAN ÖZEK PHONE: +90 312 5076915 E-MAIL: aycan. ozek@tcmb. gov. tr CENTRAL BANK OF TURKEY STATISTICS DEPARTMENT MONETARY AND FINANCIAL STATISTICS DIVISION