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Financial services

Issue 6a

For information

Charles Aspden

OECD

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Status of issue 6a

Last meeting of the task force: 10-12 May 2005

The issue will be submitted for decision to the January 2006 AEG meeting

The final paper is being finalised and will be ready during September 2005.

As requested by the February 2004 AEG, the paper covers volume/price split.

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Main recommendations

New definition of financial corporations to reflect all financial services

Do not exclude own funds as a source of financial services

Allow the recording of production of financial services for units using exclusively own funds or which have only one client

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Main recommendations (ctd)

Impose a systematic allocation of FISIM Impose the calculation of FISIM based on a formula

using a reference rate Recommend limiting this formula to loans and

deposits. Exclude holding gains from the calculation of FISIM Allow for the recording of an output of « market-

makers »

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Main recommendations

Volume calculation of FISIM: – extrapolate using the rate of change of the stock of loans

and deposits deflated by a general price index– Build an indicator based on weighted quantity indicators

(number of loans, number of accounts, money transfers, etc…)

Volume calculation of non life insurance:– Extrapolate using gross premiums deflated by premium

price indices– Build an indicator using weighted number of policies, by

class of policies