Private sector credit flow (tipspc)

Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Eurostat, the statistical office of the European Union


Eurostat metadata
Reference metadata
1. Contact
2. Metadata update
3. Statistical presentation
4. Unit of measure
5. Reference Period
6. Institutional Mandate
7. Confidentiality
8. Release policy
9. Frequency of dissemination
10. Accessibility and clarity
11. Quality management
12. Relevance
13. Accuracy
14. Timeliness and punctuality
15. Coherence and comparability
16. Cost and Burden
17. Data revision
18. Statistical processing
19. Comment
Related Metadata
Annexes (including footnotes)



For any question on data and metadata, please contact: EUROPEAN STATISTICAL DATA SUPPORT

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1. Contact Top
1.1. Contact organisation

Eurostat, the statistical office of the European Union

1.2. Contact organisation unit

Eurostat, C1, National accounts methodology. Indicators

1.5. Contact mail address

Office address:
Joseph Bech building
5, Rue Alphonse Weicker
2721 Luxembourg

Functional mail box: ESTAT-MIP@ec.europa.eu


2. Metadata update Top
2.1. Metadata last certified 22/11/2019
2.2. Metadata last posted 22/11/2019
2.3. Metadata last update 22/11/2019


3. Statistical presentation Top
3.1. Data description

The Private sector credit flow represents the net amount of liabilities (debt securities (F.3) and loans (F.4)) in which the sectors Non-Financial corporations (S.11) and Households and Non-Profit institutions serving households (S.14_S.15) have incurred through the year.

Financial flows and stocks data are often referred to collectively in the national accounts framework as 'financial accounts'. Financial flows consist of transactions and other flows, and represent the difference between the opening financial balance sheet at the start of the year and the closing balance sheet at the end of the year. The data are compiled in accordance with the European System of Accounts (ESA 2010), which came into force in September 2014.

The MIP scoreboard indicator is the consolidated Private sector credit flow, as a percentage of GDP. For MIP purposes, are also published annual consolidated and non-consolidated data by institutional sectors and financial instruments.  

3.2. Classification system

The classification system follows the European System of Accounts 2010 edition (ESA 2010). The indicators are categorised by institutional sectors and financial instruments.

3.3. Coverage - sector

The institutional sectors taken into account are:

  • Non-financial corporations (S.11) - the sector consists of institutional units which are independent legal entities and market producers, and whose principal activity is the production of goods and non-financial services. The non-financial corporations sector also includes non-financial quasi-corporations.
  • Households (S.14) - the sector consists of individuals or groups of individuals as consumers and as entrepreneurs producing market goods and non-financial and financial services (market producers) provided that the production of goods and services is not by separate entities treated as quasi-corporations. It also includes individuals or groups of individuals as producers of goods and non-financial services for exclusively own final use.
  • Non-profit institutions serving households (S.15) - the sector consists of non-profit institutions which are separate legal entities, which serve households and which are private non-market producers. Their principal resources are voluntary contributions in cash or in kind from households in their capacity as consumers, from payments made by general government and from property income.

For further information on institutional sectors and sub-sectors, see European System of Accounts 2010 edition (ESA 2010).

3.4. Statistical concepts and definitions

The MIP scoreboard indicator is the consolidated Private sector credit flow, as a percentage of GDP. It is the flow counterpart of Private sector debt (which is a stock indicator).
The calculation formula is: [PSCF/ GDPt] * 100. The indicative threshold for the indicator is 14%.

The considered institutional sectors are Non-Financial corporations (S.11) and Households and Non-Profit institutions serving households (S.14_S.15), as defined in p. 3.3. The instruments taken into account are Debt securities (F.3) - negotiable financial instruments serving as evidence of debt, and Loans (F.4) - loans are created when creditors lend funds to debtors.

Financial transactions take place between resident institutional units, and between them and the rest of the world. They are recorded in the financial account, which shows how the surplus or deficit of the capital account is financed by transactions in financial assets and liabilities. Thus, the balance of the financial account (B.9F) is conceptually equal in value to net lending / net borrowing (B.9) the balancing item of the capital account. The financial account indicates how net borrowing sectors obtain resources by incurring liabilities or reducing assets, and how net lending sectors allocate their surpluses by acquiring assets or reducing liabilities. The financial account also shows the contributions to these transactions of the various types of financial assets, and the role of financial intermediaries. Most transactions involving the transfer of ownership of goods or assets or the provision of services have some counterpart entry in the financial account. Moreover there are many transactions that are recorded entirely within the financial account, where one financial asset is exchanged for another or a liability is repaid with an asset. Financial assets may be created through the incurrence of liabilities. Such transactions change the distribution of the portfolio of financial assets and liabilities and may change their total amounts but do not affect the net lending / net borrowing (B.9).

Balance sheets are statements of the value of the stocks of assets and liabilities at a particular point of time and can be drawn up for institutional units, institutional sectors and the whole economy. The balancing item of the financial balance sheet (i.e., excluding non-financial assets) is the 'net financial assets' (BF.90), calculated as the difference between total financial assets and total liabilities. A closing financial balance sheet is equal to the opening balance sheet plus changes resulting from financial transactions and other flows (revaluations and other changes in volume of financial assets/liabilities).

Time of recording: In principle, flows are recorded on an accrual basis, that is when economic value is created, transformed or extinguished, or when claims and obligations arise, are transformed or are cancelled; the time of recording is often not when cash is exchanged.

Valuation rules: In principle, financial flows and stocks are recorded at exchange or market value. For detailed valuation rules that apply to some categories of financial instruments, see ESA 2010.

Consolidation refers to the elimination of reciprocal flows or stock positions in financial assets and liabilities between units when the latter are grouped. Consolidation is a method of presenting the accounts for a set of units as if they constituted one single entity (unit, sector, or subsector). It involves eliminating transactions and reciprocal stock positions and associated other economic flows among the units being consolidated, i.e. data do not take into account transactions within the same sector.

More details are provided in European System of Accounts 2010 edition (ESA 2010), Chapter 5 - Financial transactions.

3.5. Statistical unit

These are identified as the institutional units as defined in the European System of Accounts 2010 edition (ESA 2010), chapter 2. An institutional unit is an economic entity characterised by decision-making autonomy in the exercise of its principal function. A resident unit is regarded as constituting an institutional unit in the economic territory where it has its centre of predominant economic interest if it has decision-making autonomy and either keeps a complete set of accounts, or is able to compile a complete set of accounts.

To have autonomy of decision in respect of its principal function, an entity must be:

  • entitled to own goods and assets in its own right; it will be able to exchange the ownership of goods and assets in transactions with other institutional units;
  • able to take economic decisions and engage in economic activities for which it is responsible and accountable at law;
  • able to incur liabilities on its own behalf, to take on other obligations or further commitments and to enter into contracts; and
  • able to draw up a complete set of accounts, comprised of accounting records covering all its transactions carried out during the accounting period, as well as a balance sheet of assets and liabilities.
3.6. Statistical population

The target population consists of the sectors of the national economy, including its relations with the rest of the world and has a full coverage of transactions.

3.7. Reference area

The scoreboard presents national data for each EU Member State.

3.8. Coverage - Time

Details on data availability are available under the links:
tipspc20 Private sector credit flow, consolidated (% GDP);
tipspc10 Private sector credit flow, non-consolidated; 
tipspc13 Private sector credit flow: debt securities by sectors, non-consolidated (% of GDP);
tipspc14 Private sector credit flow: debt securities by sectors, non-consolidated (million units of national currency);
tipspc15 Private sector credit flow: loans by sectors, non-consolidated (% of GDP);
tipspc16 Private sector credit flow: loans by sectors, non-consolidated (million units of national currency);
tipspc23 Private sector credit flow: debt securities by sectors, consolidated (% of GDP);
tipspc24 Private sector credit flow: debt securities by sectors, consolidated (million units of national currency);
tipspc25 Private sector credit flow: loans by sectors, consolidated (% of GDP);
tipspc26 Private sector credit flow: loans by sectors, consolidated (million units of national currency).

3.9. Base period

Not applicable


4. Unit of measure Top

Data are presented in % of GDP and in million units of national currency.  


5. Reference Period Top

The reference period is the calendar year.


6. Institutional Mandate Top
6.1. Institutional Mandate - legal acts and other agreements

National accounts are compiled in accordance with the European System of Accounts (ESA 2010), which came into force in September 2014.

Compilation rules are further explained in the document: European system of accounts - ESA 2010 - Transmission programme of data

The indicator Private sector credit flow is one of the MIP Scoreboard indicators set up under Regulation (EU) No 1176/2011 of the European Parliament and of the Council.

6.2. Institutional Mandate - data sharing

Not available


7. Confidentiality Top
7.1. Confidentiality - policy

Regulation 2015/759 of 29 April 2015, amending Regulation (EC) No 223/2009 on European statistics of 11 March 2009 [recital 24 and Article 20(4)], stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those data with due account for technical developments and the requirements of users in a democratic society.

7.2. Confidentiality - data treatment

Not available


8. Release policy Top
8.1. Release calendar

There is no release calendar for the financial accounts data. Once checked and validated by Eurostat, data are released on the public web site. Revisions may occur at any time when new data are submitted. The data transmission rules are defined in:

Annual figures are published in T+9 months.

8.2. Release calendar access

There is no release calendar for MIP scoreboard indicators, neither for financial accounts data.

8.3. Release policy - user access

The MIP Regulation stipulates that “the Commission shall make the set of indicators and the thresholds in the scoreboard public” (Art. 4, para. 6, Regulation (EU) No 1176/2011 of 16 November 2011 on the prevention and correction of macroeconomic imbalances) and that “the Commission shall update the values for the indicators on the scoreboard at least on an annual basis” (Art. 4, § 8).

In line with the Community legal framework and the European Statistics Code of Practice, Eurostat disseminates European statistics on Eurostat's website (see §10 'Accessibility and clarity') respecting professional independence and in an objective, professional and transparent manner in which all users are treated equitably. The detailed arrangements are governed by the Eurostat protocol on impartial access to Eurostat data for users.


9. Frequency of dissemination Top

Annual. Nevertheless more frequent updates occur for countries sending their dataset more than once per year.


10. Accessibility and clarity Top
10.1. Dissemination format - News release

News releases on-line

10.2. Dissemination format - Publications

The indicators of the MIP Scoreboard are used to identify emerging or persistent macroeconomic imbalances in the EU Member States. The Scoreboard is part of an annual exercise, where the first step is the compilation of an Alert Mechanism Report (AMR).

10.3. Dissemination format - online database

See data availability for each table: tipspc20; tipspc10; tipspc13; tipspc14; tipspc15; tipspc16; tipspc23; tipspc24; tipspc25; tipspc26.

10.4. Dissemination format - microdata access

Not available

10.5. Dissemination format - other

Not available

10.6. Documentation on methodology

The methodological framework is defined in the European System of Accounts 2010 edition (ESA 2010). Documentation on sources and methods is available from national statistical offices, national central banks, and Eurostat.

10.7. Quality management - documentation

Eurostat's mission is to provide the European Union with a high-quality statistical information service - see: Eurostat quality framework.

Moreover, the statistics underlying the Scoreboard indicators are subject to a specific quality assurance framework developed within the MIP context.


11. Quality management Top
11.1. Quality assurance

Quality is assured by application of the European System of Accounts 2010 edition (ESA 2010) concepts and by a validation process on the data delivered by the EU Member States.

For the quality assurance of the statistics underlying the MIP Eurostat and the DG Statistics of the European Central Bank signed a Memorandum of Understanding (MoU) establishing a mutual recognition of the respective ESS and ESCB quality assurance frameworks, when the Member States have designated their National Central Banks for producing the datasets: Balance of payments and international investment position statistics and Financial accounts.

11.2. Quality management - assessment

Data are collected from reliable sources applying high standards with regard to methodology and ensuring high comparability.  Eurostat conducts an annual compliance exercise on the transmitted data, which focusses mainly on data availability and timeliness. The findings are made available to the national compliers.

The quality assurance framework for the Macroeconomic imbalance procedure (MIP) follows a three-level structure:

The first level assesses the reliability and comparability of MIP underlying statistics and addresses relevant quality issues; it also enhances the communication on quality assurance of MIP statistics towards the European Parliament and Council, policy makers and the public at large. This level draws on the information gathered in levels two and three (see below).

The second level consists of domain-specific quality reports produced by Eurostat and the ECB summarising the main findings for the euro area or the EU Member States. Reports assess the underlying compilation process and its robustness, describe its legal basis and evaluate whether the statistics are in line with international statistical standards.

The third level consists of national quality reports (self-assessments) produced by the institution compiling the national statistics. Most of these reports are voluntarily published by Members States on the CMFB’s website and their availability depends upon the statistical domain.


12. Relevance Top
12.1. Relevance - User Needs

The indicator Private sector credit flow, consolidated is one of the headline indicators of the MIP Scoreboard. The MIP Scoreboard is used as an early warning system in the context of the macroeconomic surveillance of the EU Member States. The MIP Scoreboard consists of a set of fourteen indicators, covering the major sources of macroeconomic imbalances. The aim of the scoreboard is to trigger in-depth studies, which will analyse whether potential imbalances identified in the early-warning system are benign or problematic.

12.2. Relevance - User Satisfaction

Not available

12.3. Completeness

According to the legislation, data for the EU Member States should be available from 1995 onwards. The following countries present a shorter time-series: HR and IE (from 2002), LU (from 1999).


13. Accuracy Top
13.1. Accuracy - overall

The MIP indicators are associated with a high level of overall accuracy. The data transmitted by Member States are checked in Eurostat for their consistency and plausibility. If any problem is detected, Eurostat contacts the relevant Member State asking to check the figures or to confirm the changes. Apart from internal consistency checks of the data, Eurostat undertakes revision analysis and additional checks. Data for general government sector is compared with other government finance statistics available at Eurostat. Due to the large size of the source dataset, it is difficult to measure overall accuracy.

13.2. Sampling error

Not available

13.3. Non-sampling error

Not available


14. Timeliness and punctuality Top
14.1. Timeliness

For EU Member States, data are transmitted once per year at T+9 months. A few countries transmit to Eurostat updated annual datasets each quarter, and several countries transmit data before T+6 months, in line with a gentlemen's agreement.

14.2. Punctuality

Punctuality depends on the delivery of basic data used for calculating the MIP indicators. In general, all Member States have transmitted the data within three weeks of the official deadline.


15. Coherence and comparability Top
15.1. Comparability - geographical

Comparability is assured by the application of common definitions: European System of Accounts (ESA 2010).

15.2. Comparability - over time

By using a common framework, the European System of Accounts 2010 edition (ESA 2010), data can be comparable over time. Information on data, breaks in series, flags are provided in the footnotes, published under each data table.

15.3. Coherence - cross domain

Financial accounts are part of an integrated set of national accounts. Therefore consistency checks are possible with the component data and with other national accounts tables submitted to Eurostat. Some variables can be cross-checked, for example, with government finance statistics, others to balance of payments statistics. National data might also be verified against official national sources.

 

15.4. Coherence - internal

Arithmetical consistency and other checks are made by Eurostat on each country's dataset. The EU and euro area aggregates are fully consistent with the country data, as these aggregates are automatically updated as soon as data for a country are revised.


16. Cost and Burden Top

Not applicable


17. Data revision Top
17.1. Data revision - policy

National data are revised according to national schedules. Additionally, the results of Eurostat's data checking process are sent to the countries, which may then revise the data.

17.2. Data revision - practice

Data are rarely flagged as provisional but may be subject to revision, as new input data become available. Benchmark revisions may occur to a country's dataset every few years. Minor changes in methodology may also be implemented and might not be widely announced. Major changes in methodology are the result of legislation, and therefore announced in the Official Journal of the European Union.


18. Statistical processing Top
18.1. Source data

Information may be derived directly from the units of the institutional sector for which they are needed, or else indirectly from counterpart information on other sectors. In many cases, financial intermediaries or institutions are the counterpart, acting as debtor or creditor.

Information in which the financial sector is not involved normally has to be obtained directly. However, in some cases (particularly in the households and non-profit institutions serving households sectors) there is a lack of direct or counterpart information and estimates have to be made. Residual methods (residuals may be obtained after the recording of other items in the accounting framework) may be used for calculating such estimates.

In general, the most important sources used to compile national annual financial accounts are statistics on financial intermediaries, particularly monthly money and banking statistics, and quarterly data provided by other financial institutions. Other main sources are balance of payments and international investment position statistics, government finance statistics and securities data of government debt management bodies, capital market statistics, direct information on non-financial corporations, and surveys of businesses or households. Although source data may come from surveys, the compilation of financial accounts is intended to be exhaustive.

18.2. Frequency of data collection

Annual

18.3. Data collection

Reporting tables of the ESA 2010 transmission programme, to be completed by national authorities. They are transmitted to Eurostat in SDMX format.

18.4. Data validation

The validation process consists of arithmetic consistency and other quality checks. Full data consistency is not always achieved before validation. The formal transmission at T+9 months undergoes a more thorough validation process as the data are compared to government finance / EDP statistics, and analysed for MIP purposes.

18.5. Data compilation

The rules on compilation of financial balance sheets are established according to European System of Accounts 2010 edition, see chapter 7. Balance sheets are usually compiled from a combination of stocks and flows source data.
The recorded values should reflect the prices observable on the market on the date to which the balance sheet relates. When there are no observable market prices, estimates should be made.
The data on credit flow can be either estimated from the direct data sources on transactions or derived from the stocks in balance sheets.

18.6. Adjustment

No adjustments are made to reported country data.


19. Comment Top

See the related metadata for additional information.


Related metadata Top
nasa_10_f_esms - Financial flows and stocks


Annexes Top