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Institutional sectors and subsectors in the financial accounts

Australian System of National Accounts: Concepts, Sources and Methods
Reference period
2020-21 financial year

15.30    The institutional sector classification used in the financial accounts and balance sheets is the same as that used in the rest of the ASNA and the SESCA:

  • non-financial corporations;
  • financial corporations;
  • general government;
  • households (including non-profit institutions serving households); and
  • rest of the world.
     

15.31    In the financial accounts and balance sheets, the non-financial corporations, financial corporations and general government sectors are broken down into subsectors, as shown below:

  • Non-financial corporations
    • Private
      • Non-financial investment funds
      • Other private non-financial corporations
    • Public
  • Financial corporations
    • Central bank
    • Authorised deposit-taking institutions (ADIs)
    • Other broad money institutions
    • Pension funds
    • Life insurance corporations
    • Non-life insurance corporations
    • Money market financial investment funds
    • Non-money market financial investment funds
    • Central borrowing authorities
    • Securitisers
    • Other financial corporations
  • General government
    • National
    • State and local.
       

15.32    The institutional sector and subsector classification shown above is also used to classify the counterparty transactions and positions shown for each institutional sector and subsectors. Chapter 4 provides a description of the sectors and subsectors used in the financial accounts.

15.33    As financial transactions and other flows take place between institutional units, and financial positions are held between institutional units, the transactions, flows and positions are classified to the sectoral classification twice, once from the asset holder's point of view and the other from the liability issuer's point of view. For example, household deposits with ADIs are classified to household sector assets and ADI sector liabilities as a party/counterparty pair. The double classification is applied symmetrically for parties and counterparties to flows or positions.

15.34    In the formal sectoral presentation of the financial accounts, all transactions and positions between entities in the same subsector or each successive aggregation of subsectors is eliminated. Consider an ADI that incurs a deposit liability and in turn places the funds on deposit with another, but unrelated, ADI. The question of ''what is the value of ADI sector deposits'' is most properly answered from a sectoral behaviour point of view by consolidation (elimination) of the intra-ADI sector deposits. One consequence of this type of consolidation is that aggregation of subsectors to broad sectors, say all subsectors of the financial corporations sector, will produce a lower aggregate value for a particular transaction category than the simple summation of the components. Consolidation of financial accounts for all domestic sectors to a whole of economy aggregate will result in an exact counterpart to the Rest of World accounts.

15.35    For some types of economic analysis, the formal sectoral consolidation has some drawbacks. For financial market analysis, say, for determining potential for issuing various instruments, it is useful to know the gross rather than net size of the market. The entries eliminated in the example given above are thus retained for the financial accounts presentation of financial instrument markets data. The ADI deposits markets table will disclose the value of ADI deposits with ADIs.