Monhly moneary saisics (excluding banking ineres raes) 13 March 2017 The moneary saisics mehodology applies o all counries of he euro area. As par of he Eurosysem s saisical sysem, he Banque de France collecs and analyses rends for France and he European Cenral Bank cenralises naional conribuions, calculaes and disseminaes euro area aggregaes. 1. Definiions Geographical areas Euro area = Ausria + Belgium + Cyprus + Esonia + Finland + France + Germany + Greece + Ireland + Ialy + Lavia + Lihuania + Luxembourg + Mala + Neherlands + Porugal + Slovakia + Slovenia + Spain The European Sabiliy Mechanism (ESM) and he European Financial Sabiliy Faciliy (EFSF) are also included in he geographical area "Euro area". France s erriory is defined as follows for he compilaion of moneary saisics (unless oherwise saed): France = meropolian France + Monaco + Overseas Deparmens (French Guyana, Marinique, Guadeloupe, Réunion, Mayoe) + Sain-Pierre-e-Miquelon + Sain Marin + Sain Barhélémy (Decision 2014-01 of he Governor of he Banque de France). Economic secors Money-issuing secor: moneary financial insiuions (MFIs), which include residen credi insiuions as defined in Communiy law and all oher residen financial insiuions whose business is o receive deposis/or close subsiues from eniies oher han MFIs and, for heir own accoun, o gran credis and/or o make invesmens in securiies. Under he erms of his definiion, he residen MFIs in France are he Banque de France, credi insiuions as defined under banking law oher han muual guaranee companies, he Caisse des dépôs e consignaions, money-marke funds. Paymen insiuions are no included in moneary financial insiuions.. Money-neural secor: cenral governmen. Cenral governmen agencies are no considered o be in eiher he money-holding or money-issuing secors, even hough heir mos liquid liabiliies in he form of deposis are included in he moneary aggregaes (see he descripion of cenral governmen deposis below). Money-holding secor: oher financial inermediaries, insurance companies and pension funds, as well as nonfinancial agens i.e.: general governmen, non-financial corporaions, households and non-profi insiuions serving households (NIPISHs). 1 Conac : DGS-DSMF
Money-issuing secor Moneary financial insiuions (MFIs) ECB and NCBs Credi insiuions Money marke funds Oher moneary financial insiuions Money-neural secor Cenral governmen Main caegories of economic agens General governmen oher han cenral governmen Social securiy adminisraions Local governmen Money-holding secor Privae secor nonfinancial agens Non-financial corporaions Households (sole raders, privae individuals) Non-profi insiuions serving households Oher financial inermediaries Insurance companies and pension funds Non-money marke funds Invesmen firms Financial vehicle corporaions Clearing houses, ec. Non-financial agens General governmen Privae secor Moneary asses and aggregaes Deposis wih agreed mauriy: deposis ha are no immediaely disposable because hey are subjec o a fixed erm, or which are only disposable before he agreed erm by forgoing some or all of he agreed ineres. Deposis redeemable a noice up o hree monhs: deposis of liquid savings ha offer less immediae liquidiy han overnigh deposis. In France, his covers ax-free passbook savings accouns such as livre A, livre bleu, Codevi, compe d épargne-logemen, livre d épargne populaire, livre jeune, and axable passbook savings accouns Repurchase agreemens: an agreemen whereby an asse is sold while he seller simulaneously obains he righ and obligaion o repurchase i a a specific price on a pre-deermined fuure dae 1. Securiies oher han shares: in France, his covers negoiable deb securiies 2 and bonds, governmen securiies (governmen bonds, Treasury bills) and paricipaing securiies. M1: currency in circulaion 3 and overnigh deposis. M2: M1 + deposis redeemable a noice up o hree monhs + deposis wih agreed mauriy up o wo years. M3: M2 + repurchase agreemens + money marke fund shares/unis + deb securiies issued wih mauriy up o wo years by moneary financial insiuions. Only posiions vis-à-vis euro-area residens oher han MFIs or cenral governmen insiuions are included in he M1, M2 and M3 aggregaes. All of he asses covered by he M3 aggregae are called moneary asses. The classificaions of moneary asses are based on an assessmen of he liquidiy of he asses, regardless of he currency hey are denominaed in, so as o ake accoun of possible subsiuions beween euro asses and foreign currency asses and o avoid any breaks in he saisical series.an original mauriy hreshold is also used o selec deposis wih agreed mauriy and deb securiies of a moneary naure. The hreshold is wo years, which is he same maximum mauriy for credi insiuions eligible liabiliies for he calculaion of reserve requiremens. Furhermore, in some euro area counries (Ialy, Belgium, Ireland), he Treasury and/or he Pos Office are eniled o ake deposis and gran loans. Even hough hese eniies are no moneary financial insiuions (MFIs), he deposis ha hey receive are included in he euro area moneary aggregaes if hey mee he crieria for inclusion. In France, overseas deparmens and heir public insiuions are required o cenralise heir deposis wih he Treasury. In addiion, La Banque Posale is a credi insiuion and herefore an MFI. 1 See ECB (February 2004) General Documenaion on Eurosysem Moneary Policy Insrumens and Procedures Glossary (page 83). 2 In his caegory, a disincion is made for deb securiies issued by moneary financial insiuions wih mauriy up o wo years, which are considered o be close subsiues for deposis. 3 Banknoes and coins do no appear in he French componen of M1, as published in he "sa info money". Banknoes and coins in he M1 aggregae (euro area) are broken down according o he share of each Eurosysem NCB in he capial of he ECB. 2 Conac : DGS-DSMF
Counerpars of M3 The counerpars of M3, which are he primary sources of money supply, are idenified or derived from he MFI balance shee iems ha are no included in he aggregaes: Longer erm financial liabiliies 4 (excluding capial), Invesmens of MFIs in securiies issued by non-mfis, Loans graned by MFIs o non-mfis, Ne exernal asses of MFIs 5, Balance of claims and liabiliies beween MFIs 6, Residual iem. Loans include housing loans (all loans graned o finance households invesmen in housing: home improvemen loans, loans for purchases of new or exising housing), cash loans, oher loans, gross non-performing loans, leasing, holdings of nonnegoiable securiies and subordinaed deb in he form of deposis or loans. 2. Sources The moneary saisics are produced and analysed in he Direcorae General Saisics by he Moneary and Financial Saisics Direcorae and more specifically by he European Saisics Division. The European Cenral Bank (ECB) calculaes he euro area moneary aggregaes by compiling he daa supplied by he Eurosysem cenral banks. The balance shee daa collecion arrangemen applies primarily o MFIs, in accordance wih Regulaion No.1071/2013 of he ECB concerning he balance shee of he moneary financial insiuions secor (ECB/2013/33). Decision No. 2014-01 of he Governor of he Banque de France ses ou he procedures for implemening his regulaion a he Banque de France. In operaional erms, he ransmission of daa o he Banque de France passes hrough differen channels, depending on he caegory of reporing agens: The main source of informaion abou credi insiuions is heir financial saemens and he noes o hese saemens, which hey file wih he General Secrearia of he Auorié de conrôle prudeniel e de résoluion on a monhly or quarerly basis, depending on heir business volume. Noice No. 2014-01 from he Moneary and Financial Saisics Direcorae ses ou he forms for he saemens; Daa from money marke funds are repored o he Direcorae General Saisics (Financial Savings and Securiisaion Division). This Division is he poin of enry ino he Banque de France sysem for saisics provided by invesmen funds. Noice 2014-01 from he Moneary and Financial Saisics Direcorae ses ou he deailed conen of he daa colleced; In he case of he Banque de France, he basic informaion is provided by he Accouning Direcorae. Deailed daa from he auxiliary accouns kep by he Direcorae General Operaions are used o compile he saisics relaing o he Banque de France s securiies porfolio; In accordance wih he definiions conained in he firs par of Annex II o aforemenioned Regulaion (EC) 1071/2013, he populaion reporing o he Banque de France for he purposes of hese saisics includes he branches and subsidiaries of credi insiuions wih heir regisered office or paren company locaed ouside of France. For he purposes of his regulaion, he reporing populaion includes he branches and subsidiaries of credi insiuions from oher European Union counries. Informaion abou deposis aken by he Treasury is obained direcly from he Direcorae General of he Treasury. 3. Mehods In accordance wih Regulaion 1071/2013 of he ECB, he Banque de France, along wih he oher naional cenral banks (NCBs) in he Eurosysem, produces an aggregaed balance shee for MFIs wih heir regisered office 4 Longer erm financial liabiliies: bonds, fixed-erm deposis and deb securiies wih an agreed mauriy of over 2 years, deposis redeemable a noice over hree monhs, capial and réserves. 5 Ne exernal asses of MFIs can cover wo aspecs: on he one hand, MFIs carry ou operaions wih non-residens for heir own accoun (invesmen of a euro area bank in a non-residen bank subsidiary); on he oher, MFIs record in heir balance shee he counerpar of he ransacions of he non-financial secor (firms, insurance companies, ec.) wih non-residens. 6 The balance of claims and liabiliies beween MFIs is no necessarily equal o zero due o he lag in he dae a which operaions are recorded. 3 Conac : DGS-DSMF
locaed in he naional erriory (excluding heir foreign branches) on a monhly basis. This MFI balance shee is he cornersone of he moneary saisics producion sysem a he naional and European levels. Liabiliies are broken down wih he aim of idenifying liquidiies ha could be included in he moneary aggregaes: currency in circulaion, overnigh deposis, deposis wih agreed mauriy, deposis redeemable a noice, repurchase ransacions, deb securiies, money marke fund shares/unis, money marke insrumens, capial and reserves, and oher resources. Asses are broken down ino loans, holdings of deb securiies, money marke insrumens and shares and oher equiy, fixed asses and oher asses. Under he provisions of Regulaion (EC) 1071/2013 of he European Cenral Bank of 24 Sepember 2013 (ECB/20013/33), deposis and loans mus be repored a he gross nominal amoun ousanding a he end of he monh for saisical purposes. Nominal amoun means he amoun of principal ha a debor is conracually obliged o repay a credior. NCBs are sill allowed o coninue presening loans ne of provisions, as long as hey have informaion ha makes i possible o adjus for he changes in ousanding socks semming from ne provisions. This can be obained eiher by adjusing he ousanding amouns for he changes in he sock of provisions, or by valuing he ousanding amouns a he price agreed a he ime of acquisiion (which may be differen from he repayable value if loans are ransferred before mauriy). Furhermore, mos of hese daa are broken down by original mauriy, residence and he counerpary secor. This leads o a disincion beween claims and liabiliies vis-à-vis euro-area residens and residens of he res of he world, and a disincion beween claims and liabiliies vis-à-vis MFIs and non-mfis, which makes i possible o disinguish moneary asses held by non-mfis residen in he euro area and hus include cross-border asses held in he euro area in he money supply. The NCBs compile he aggregaed MFI balance shee monhly on he basis of daa colleced from he MFIs. The saisics in he moneary balance shee are ransmied o he ECB wihin fifeen working days of he end of he reference monh. In order o ease he reporing burden of MFIs, monhly daa collecion may be resriced o a subse of MFIs, provided ha heir oal balance shee accouns for a leas 95% of oal balance shee for he MFI secor. Supplemenary daa are colleced quarerly. The purpose of hese daa is o provide a deailed breakdown of he main balance shee iems by currency, counry, secor and purpose. The welve counries paricipaing in he Moneary Union have been fulfilling hese requiremens since mid-1998. This means ha we now have a consolidaed balance shee for he MFIs in he euro area, which is used o calculae he euro area moneary aggregaes as a simple sum of he moneary componens on he balance shee. In France, he monhly saisics are colleced only from credi insiuions wih business ha mees a leas one of he following condiions: a oal balance shee of more han EUR 2 billion, ousanding cash loans o households above EUR 500 million, ousanding leases o residen non-financial corporaions above EUR 500 million, ousanding leases o residen households above EUR 200 million. In addiion, he quarerly financial saemens ha he Auorié de conrôle prudeniel e de résoluion requires all credi insiuions o file are used o esimae he monhly balance shee of insiuions ha are no required o repor on a monhly basis and o obain quarerly breakdowns. Naional indicaors are obained by aggregaing he basic iems for each financial nework. This aggregaion includes he daa colleced for he reference monh in quesion, as well as he laes informaion available for insiuions reporing on a quarerly basis. Furher informaion abou he specific feaures of he French financial sysem help o refine he racking and analysis of residens invesmen and borrowing paerns (e.g. securiisaion, breakdown of lending by purpose and breakdown of deposis by ineres rae caegory, passbook savings accouns, ec.). 4 Conac : DGS-DSMF
4. Revisions The iems on he Banque de France moneary balance shee are subjec o revisions only under very excepional circumsances. The process for revisions of credi insiuions daa is organised as follows: The resuls for a given monh are firs revised when he resuls for he following monh are published o ake accoun of insiuions ha ransmied heir repors lae and whose resuls were esimaed when firs published, as well as correcions of any errors; The resuls are revised a second ime, when he repors for he las monh of a quarer are aligned wih he quarerly repors. This alignmen makes i possible o inegrae he laes available daa relaing o insiuions ha are only required o repor on a quarerly basis and o refine he informaion provided by hose ha repor on a monhly basis. Changes are generally made effecive when he resuls for he end of he nex quarer are published; Under excepional circumsances, and no more han once a year, a final revision is made o ake accoun of he reconciliaion of moneary saisics wih he final financial accouns. Revisions for money marke funds are made on he same basis as revisions for credi insiuions. However, revisions for money marke funds are due solely o he inegraion of daa from funds ha ransmi heir repors lae and o correc anomalies. 5. Flow saisics Moneary and financial flows are he variaions in he balance shee of he moneary financial insiuions secor semming from economic ransacions, such as deposi-aking, ne issuance and acquisiions of securiies, and graning and collecing loans. They are calculaed by adjusing variaions in socks a he end of he monh for effecs ha do no arise from economic ransacions. F Where ) C ( E E 1 A X -C, reclassificaions and oher saisical effecs These effecs include changes affecing he populaion of MFIs (enries, deparures, mergers and akeovers),reclassificaion of asses and liabiliies (defeasance, securiisaion) and correcion of reporing errors. - A, revaluaions and wrie-offs The effecs concerned here are hose semming from variaions in he marke value of securiies and loan wrie-offs ha lead o a decrease in he ousanding amouns of loans shown in he financial saemens. Revaluaions of credi insiuions rading book securiies are calculaed on he basis of securiy-by-securiy reporing of he porfolio. No revaluaion calculaions are required for he oher caegories of securiies porfolios since ousanding amouns are repored a heir acquisiion price afer neuralising any provisions - X, he revaluaions linked o exchange rae flucuaions affecing he amoun convered ino euros of foreign currency denominaed operaions. This correcion is made by he ECB and is deailed in he Handbook for he compilaion of flows saisics on he MFI balance shee (2006) 7. Calculaing growh raes The monhly growh rae of a ime series a dae is defined by: where: - F : monhly flow for he period - E 1 : ousanding amoun observed a he end of he monh 1. F E 1 The annual growh rae in percen a dae, denoed a, is calculaed as follows: 7 hp://www.ecb.in/pub/pdf/oher/handbookcompilaionflowsaisicsmfibalance200602en.pdf 5 Conac : DGS-DSMF
11 a = 1 F i 1 * 100 i0 Ei1 The hree-monh growh rae, denoed q, is calculaed as follows: 2 q = 1 1 * 100 0 1 F i i E i The annualised growh rae over hree monhs, denoed QA, is calculaed as follows: 4 2 qa = 1 1 * 100 0 1 F i i E i If daa on reclassificaions and revaluaions are available, he ECB and he Banque de France prefer his calculaion mehod based on flows and socks, because i provides a more accurae measuremen of moneary changes. However, some of he daa presened do no include any adjusmens, as in he case of deposis. In his case, he annual percenage rae of change, denoed g, is derived from gross ousanding amouns using he following formula: E g = 1 * 100 E 12 I is easy o check ha boh calculaions produce he same resul (a = g) if no reclassificaions or revaluaions occurred in he previous welve monhs. Calculaing conribuions o growh The calculaion of conribuions o growh is also based on a mehodology ha reranscribes he changes in he aggregaes as bes as possible. For a ime series (x), is conribuion o growh, denoed c, of he dependen ime series (y) is defined as follows: 12 12 F ( x) 1 c = * ( y) 12 g F ( y) 1 where: F ( x) : sum of he 12-monh flows of he explanaory variable; 1 12 1 g F ( y) : sum of he 12-monh flows of he dependen variable; (y) : growh rae of he dependen variable calculaed using he above-menioned mehodology. 6 Conac : DGS-DSMF
Thus, if y is he sum of k componens x s, wih s ranging from 1 o k, is growh rae a is he sum of he k conribuions a of he componens x s. 6. Noional socks saisics In addiion o he ousanding amouns and flow saisics, noional socks are calculaed. The idea is o faciliae he work of daa users, by allowing hem o have hisory of socks direcly relaed o he annual growh raes. These noional amouns are calculaed as follows: E N,-1 = Where: E N, noional sock a dae E ousanding amoun a dae F flow a dae EN, 1 F / E 1 7. Seasonal adjusmen mehod The residen MFI balance shee iems ha make up he moneary aggregaes and loans o he residen privae secor in France are adjused for seasonal effecs based on he X12 procedure. The firs sep, known as preadjusmen, aims a exending he unadjused series - previously adjused for ouliers, wih he excepion of hose deeced over he recen period8 - using 12-monh forecass. The second sep consiss in carrying ou a seasonal adjusmen via he X12 algorihm. The revision policy of seasonally-adjused daa is uniform: he SARIMA models and ouliers, for which a specificaion is done once a year, in January, are re-esimaed every monh. Each seasonally-adjused daa series (sum or componen) is seasonally adjused individually. If, in unadjused daa, a series is he sum of several ohers, here will a priori be a discrepancy beween his seasonally-adjused series and he sum of is seasonally-adjused componens. 8. Taking accoun of securiisaion in loan saisics The mehod applied by he BdF consiss in correcing he "accouning" socks of credi insiuions by adding he securiised socks. These securiised socks are repored on a monhly basis by credi insiuions. 8 More specifically, he no oulier consrain applies o an inerval ha ranges from he welve monhs preceding he annual specificaion phase (in January) o he 12 + m-1 las monhs, where m is he curren monh. 7 Conac : DGS-DSMF