FINANCIAL MARKET STATISTICS

Transcription

1 FINANCIAL MARKET STATISTICS Balance of Payments and Financial Market Statistics Unit, Statistics Sweden May July 2010 Produced by Statistics Sweden on behalf of Sveriges Riksbank FM5001 M05

2 Table of contents (to get to a specific table, click on the name of that table) Part 4 Specification of certain balance sheet items Specification of certain asset and liability items 4.1 Diagram certain balance sheet items 4.36 Specification of MFIs' overnight loans, repurchase agreements and other credits 4.2 Method certain balance sheet items 4.37 Specification of banks' overnight loans, repurchase agreements and other credits Method 4.38 Specification of securities MFI Lending to Swedish households and public sector 4.39 Specification of securities banks Quick facts 4.3 Lending to Swedish households and public sector 4.40 Specification of securities housing credit institutions 4.41 MFIs' derivatives, specification of counterpart Growth Index Specification of lending items broken down by maturity, purpose and collateral 4.42 Banks' derivatives, specification of counterpart 4.4 MFIs' lending broken down by maturity 4.43 Appendix for part 4 Specification of certain balance sheet items Part 1 Overview 4.5 Banks' lending broken down by maturity 1.1 MFIs' assets 4.6 Housing credit institutions lending broken down by maturity Part 5 Interest rate statistics 1.2 MFIs' liabilities 4.7 Lending to households incl. NPISH broken down by the sector of the lender and purpose 5.1 Diagram interest rate statistics 1.3 Lending to and deposits from Swedish non-mfi 4.8 MFIs' lending for housing loans to Swedish households broken down by maturity 5.2 Method interest rate statistics 1.4 Lending and deposit rates towards Swedish households and non-financial corporations 4.9 Banks' lending for housing loans to Swedish households broken down by maturity 5.3 MFIs' lending rates 1.5 Money supply 4.10 Housing credit institutions' lending for housing loans to Swedish households broken down by maturity 5.4 Banks' lending rates 1.6 Securities issued on the Swedish market in SEK 4.11 MFIs' lending broken down by collateral 5.5 Housing credit institutions' lending rates 1.7 Appendix for part 1 Overview 4.12 Banks' lending broken down by collateral 5.6 Lending rates to households broken down by sector of the lender and purpose 4.13 Housing credit institutions' lending broken down by collateral 5.7 Finance companies and other MFIs' lending rates Part 2 Money supply 4.14 Finance companies' lending broken down by collateral 5.8 Banks' deposit rates 2.1 Diagram money supply 4.15 MFIs' lending broken down by collateral 5.9 Banks' deposit and lending rates in comparison with a 6-month treasury bill 2.2 Method money supply 4.16 MFIs' purchased and sold loans each period, net 5.10 Housing credit institutions' deposit and lending rates in comparison with a 6-month treasury bill 2.3 Money supply, Notes and coins held by Swedish non-bank public, M1, M2 and M MFIs' lending rates, period ending stock, broken down by remaining interest rate period 2.4 Money supply, Notes and coins held by Swedish non-bank public, M1, M2 and M3 12-month growth rate % Specification of lending items broken down by type of credit plus card statistics 5.12 Banks' lending rates, period ending stock, broken down by remaining interest rate period 2.5 Former definition of Money supply, Notes and coins held by Swedish non-bank public and M MFIs' lending to Swedish and foreign non-mfi broken down by type of credit 5.13 Housing credit institutions' lending rates, period ending stock, broken down by remaining interest rate period 2.6 Monetary base 4.18 Banks' lending to Swedish and foreign non-mfi broken down by type of credit 5.14 Appendix for part 5 Interest rate statistics 2.7 Appendix for part 2 Money supply 4.19 Housing credit institutions' lending to Swedish and foreign non-mfi broken down by type of credit 4.20 Finance companies' lending to Swedish and foreign non-mfi broken down by type of credit Part 6 The securities market Part 3 Balance sheets 4.21 MFIs' lending to Swedish and foreign non-mfi broken down by type of credit 6.1 Diagram concerning the securities market 3.1 Diagram balance sheets 4.22 MFIs' lending in the form of convenience credit card and extended credit card credit 6.2 Method securities market 3.2 Method balance sheets 4.23 Banks' lending in the form of convenience credit card and extended credit card credit 6.3 Money market 4.24 Finance companies' lending in the form of convenience credit card and extended credit card credit 6.4 Bond market Balance sheet by reference sector, current period 4.25 Number of convenience credit cards and extended credit cards issued 6.5 Appendix for part 6 The securities market 3.3 MFIs' balance sheet 3.4 Banks' balance sheet Specification of housing credit institutions' lending items Part 7 MFIs' claims and liabilities outside Sweden 3.5 Housing credit institutions' balance sheet 4.26 Housing credit institutions' lending to Swedish and foreign non-mfi 7.1 Diagram MFIs' claims and liabilities outside Sweden 3.6 Finance companies' balance sheet 7.2 Method MFIs' claims and liabilities outside Sweden 3.7 MFIs' balance sheet Leasing 7.3 External positions of MFIs located in Sweden outstanding amounts 3.8 Banking companies, bank branches outside Sweden, foreign bank branches in Sweden and savings banks balance sheet 4.27 Leasing from MFIs, broken down by type of leasing object 7.4 Swedish owned MFIs' consolidated foreign claims 4.28 Leasing from banks, broken down by type of leasing object 7.5 External positions of MFIs located in Sweden time series Balance sheet by reference sector, time series 4.29 Leasing from finance companies, broken down by type of leasing object 7.6 Swedish owned MFIs' consolidated foreign claims ultimate risk basis, time series 3.9 MFIs' balance sheet time series 4.30 Leasing from MFIs, broken down by counterpart 7.7 Appendix for part 7 MFIs claims and liabilities outside Sweden 3.10 Banks' balance sheet time series 4.31 Leasing from banks, broken down by counterpart 3.11 Housing credit institutions' balance sheet time series 4.32 Leasing from finance companies, broken down by counterpart Glossary 3.12 Finance companies' balance sheet time series 3.13 MFIs' balance sheet time series Deposits from households and the households individual pension savings 3.14 Banking companies' balance sheet time series 4.33 MFIs' deposits from Swedish households 3.15 Bank branches outside Sweden balance sheet time series 4.34 Banks' deposits from Swedish households 3.16 Foreign bank branches in Sweden balance sheet time series 4.35 Individual pension savings

3 Method This Section describes how the publication is built-up and provides a comprehensive review of the methods generally used. For a more detailed description of either the money supply, interest rate statistics or the international receivables and liabilities of MFIs, refer to the respective Sections on Methods. Introduction The Riksbank has long compiled statistics with respect to Swedish Monetary Financial Institutions (MFI) and the financial markets - the Financial Market Statistics. The required information has mainly been collected on a monthly basis. Certain information has, nevertheless, been reported quarterly. The statistics are published in a short time after the reference month, which means that figures can be revised in later periods. Since Statistics Sweden has, on behalf of the Riksbank, assembled the Financial Market Statistics. This means that statistics regarding the circumstances as of and later are produced by Statistics Sweden. This applies generally with the exception that some parts of the interest statistics (part five) have been produced by the Riksbank up to and including Quarter 1, The information is assembled by Statistics Sweden and released monthly in this publication. Each new release of Financial Market Statistics is accompanied by a Press Release. The publication were published for the first time in this form in February 2006, referring to circumstances in From September 2010 and onwards there's a new version of this publication. The background is that all the reporting forms have been changed and at the same time this publication have been improved. A couple of new tables have been added and a few has been removed. Some tables have a different number than before, see the Table and graph index. Some tables have been revised due to a change in definitions. Further descriptions can be found in the method section for each part. Together with the new publication all tables have been updated to catch old revisions of the time series. The former publication with figures up to and including August 2010 can be found on the website for comparison. In connection to the publication for July 2011 there has been a number of updates. The time series for MFIs' balance sheet has been extended to 1975, using prior published material from Statistics Sweden and the Riksbank. Amounts and growth rates up until 1995 should be considered with precaution. The Statistics portray: - the comprehensive structure of the assets and liabilities of MFI, - the development of money supply and the extension of credit (deposits and lending), - the balance sheets of MFI, - the setting of interest rates by MFI, - the securities market. Contacts Contacts at Balance of Payments and Financial Markets Statistics Unit, Economic Statistics Department, Statistics Sweden: Anders Nyberg firstname.lastname@scb.se Jens Viklund firstname.lastname@scb.se Elin Henriksson firstname.lastname@scb.se Tina Hansson firstname.lastname@scb.se Telephone: fmr@scb.se Outline Composition of the publication A menu consisting of a set of tabs with headings appears on each page. A list of contents and this Method Section are included in the menu. In quick facts certain demanded tables are presented. The diagrams which appear in the publication can be found in the overview part as well as at the beginning of each respective part. The publication can be divided into the following parts: Part 1: Overview. This briefly describes the main series. These series are further broken down later in the relevant part of the publication. Part 2: Money supply and its development. The monetary base and the former money supply measurements can be found here as well. Part 3: The balance sheets of MFI. Current positions as well as changes in current positions are shown here (under the first tab). Time series follow (under the next tab). Part 4: Specifications for selected balance sheet items. This applies foremost to specifications of deposits and lending but also to leasing, securities and to individual pension savings that are reported. Part 5: MFI' deposit and lending rates. Part 6: The securities market: Both the bond and the money markets are accounted for. Part 7: Swedish MFIs' international receivables and liabilities. A distinction is made between the consolidated receivables and the receivables and liabilities calculated for the solely Swedish share of the institute.

4 Time series Time series are found in the tables included within the different parts of the publication. Complete time series are not included as a standard. In order to access complete time series, one must open the first row in a Table. In order to view any one single time series, click on the button displaying a + - sign. This little button is located at the furthest left-hand side of the time series. In order to hide the time series from view again, click on the button displaying the - sign and located furthest to the left of the time series. In order to view all time series within a tab, click on the little button with number 2 in the upper lefthand edge. In order to hide them from view again, click on the little button with number 1 in the upper left edge.

5 General Method All series in the publication, except for the money supply which is reported in Part 2 and the series for Swedish based MFIs in part 7, are calculated including foreign branches and excluding transactions with own foreign branches. This is in contrast to the data published by the European Central Bank, ECB, which is calculated excluding foreign branches but including transactions with own foreign branches. The money supply are counted with foreign branches excluded. The Reference Sector The reference sector refers here to that sector whose positions, particularly as lenders, receivers of deposits and issuers of securities, the statistics aim to describe. The publication generally presents the reference sector's Monetary Financial Institutions (MFI) which are then further divided into banks, housing credit institutions, finance companies and other MFI. In terms of the banks' balance sheets, a more refined breakdown, also to be found in the sector's structure, is available. General structure of the reference sector in the publication: Monetary Financial Institutions, MFI (21) Banks (excluding central banks) ( ) Banking companies Banking companies branches outside Sweden Foreign bank branches in Sweden (213) Savings banks Housing credit institutions (214) Finance companies (subset of sector 215) MFI Local government- and company-financing institutions (subset sector 215) Monetary investment funds (216) Monetary securities companies (217) Monetary Financial Institutions (219) As of and from April 2009 onward monetary investment funds (216), (sometimes called money market funds), are included in the MFI reference sector. Figures from March 2005 and onwards are included in the tables. The Riksbank (211) which is also classified as a MFI yet is not included in the MFI reference sector. The Association banks (Swedish "föreningsbankerna") are included in the group Banking companies. The local association banks were economic associations which in 1991merged into one bank and in 1992 became a limited banking company. The sector's code according to the Standard Classification by Institutional Sector 2000, INSEKT 2000, is given in brackets. This classification standard defines Swedish sectors, sub sectors and sub-sub sectors.1) Counterpart sector The counterpart sector refers here primarily to borrowers and deposit granters. The breakdown of counterparts depends to some extent on the different characteristics of items posted in the balance sheet. Those counterparts that are marked in bold are the usual counterparts. The sub-levels of the counterparts are shown here primarily for the purpose of describing them in the sector's details. The sub-levels of the sectors marked in bold are solely reported on in exceptional cases and in specific tables (applies in reality only to households and the public sector). For certain Tables and instruments, there exist only less detailed breakdowns or no breakdown of counterparts at all. The notion of 'the general public' as a counterpart sector occurs other than in the sectors presented here. See the next Section. The two sectors - Non-MFI and MFI - add up to the total of all sectors, that is, the total economy. Non-MFI (Swedish and foreign) Swedish Non-MFI Financial corporate sector, not MFI ( ) Non-monetary investment funds (222) Non-monetary securities' companies (223) Insurance corporations and pension institutes (23) s Financial service corporations (24) Non-Profit Institutions serving Financial corporations (25) Investment corporations (224) Credit market companies (221) financial institutions (229) Non-financial corporate sector (1) Public sector Swedish National Debt Office (312) Municipalities and county councils (4) Municipalities (41) County councils (42) Social insurance funds (50) Central government administrations excluding the Swedish National Debt Office (311 and 32) Households Entrepreneurial households (61) households (62) Non-profit institutions serving households (7)

6 Foreign Non-MFI Foreign Non-MFI (EMU countries) Public sector excluding central banks Central governments Regional governments Municipalities Social insurance funds counterparts Insurance corporations financial institutions Non-financial corporate sector Households Non-profit institutions serving households Foreign Non-MFI (Rest of the EU and rest of the world, excluding Sweden) Public sector Non-financial corporate sector Households counterparts MFI (Swedish and foreign) Swedish MFI (21) The Riksbank (211) Banks (excluding central banks) (212) Foreign bank branches in Sweden (213) Housing credit institutions (214) monetary credit market companies (215) MFI Monetary investment funds (216) Monetary securities companies (217) Monetary Financial Institutions (219) Foreign MFI 1) Foreign MFI (EU countries) Foreign MFI ( rest of the world excluding Sweden and the EU) 1) Foreign MFI also includes branches to Swedish MFI. Foreign MFI in EU countries follows the ECB definition for MFIs in the EU. MFI in the rest of the world includes banks and other financial institutions for which lending to the public and deposits or close substitutes to deposits from the public stands for a large part of the institutions activity. The general public Non-MFI The notion of the general public has been changed to non- MFI as much as possible in the new publication. The definition of non-mfi lies under the tree structure. The difference between the two concepts is that non-mfi contains the National Debt Office, social insurance funds, non-monetary securities companies, insurance companies and pension institutes which are not included in the general public. The notion of the general public appears today only in Part 2 Money supply. In this part the definition of the general public has a slight difference compared to the description above (see 2.2 Method). The tables and 4.26 are from September 2010 and onwards showing Swedish and foreign non-mfi. Before that the tables shows Swedish and foreign general public. At the extension of the time series to 1975, the above mentioned sectors have been included in non-mfi from the time when the statistic was available. The MFI population and the basis for this publication All Monetary Financial Institutions are bound to report financial market statistics according to The Riksbank's regulations and general guidelines (RBFS 2010:1) on the reporting by institutions of Financial Market statistics. At the end of August 2010, there were 173 institutions which were classified as MFI. Today, Banks, Housing credit institutions, Finance companies, Local government- and company-financed institutions as well as Monetary securities companies are classified as Monetary Financial Institutions. Monetary investment funds, sometimes called money market funds, are also classified as Monetary Financial Institutions although they are not currently subject to the same reporting requirements. Figures from these institutions are collected via their reporting to the Financial Supervisory Authority at a quarterly basis. The figures are updated one month after the reference month. For example the values for September are updated in the publication as of October. For months where no reporting occur the values of the most recent reporting period are used. This effect the balance sheet tables in section 3, and also the money supply measure M3 in section 2.3. Most of the information for the publication is obtained from an accounting-based form called the MFI form. The reporting parties are divided into three groups depending on the size of their balance sheet totals. Those included in the group which accounts for 95% of the MFI balance sheet total report monthly while the other parties report quarterly, or annually if they belong to the group which accounts for 0.5% of the balance sheet total. Over the years, the content of the MFI form has changed. The newer forms contain, above all, a greater number of breakdowns than the older forms. Today's MFI form came into use in September The greatest of content changes nevertheless occurred at the turn of the year 2001/2002 when a common form for all MFIs was introduced. Prior to this, different types of institutions used different forms for reporting purposes. The changeover to a common form may have led to cases in which certain time series in the publication include definitions which differ over time. Differences in the definition of the MFI population over time have also occurred. Finance companies have been reporting the MFI form since ember 2001 and Monetary securities companies since March Finance companies are included though in the MFI population even before that. Before 1980 the population differs somewhat compared to the present definition. Monetary securities companies are included in the group other MFI from 1996 and onwards. Explanation of Symbols - Nothing to present.. Data not available or too uncertain to be stated. Category not applicable

7 Quick facts Money supply - annual growth rate M1 10,1 % M2 6,6 % M3 4,1 % Table 2.4 MFIs' a) lending to Swedish households incl. NPISH b) - annual growth rate 5,3 % MFIs' lending to Swedish households incl. NPISH SEK millions Table MFIs' lending to Swedish households for housing loans SEK millions Table 4.7 MFIs' lending rates to Swedish households for housing loans Rates - new agreements during the month 2,56 % Table Rates - period ending stock 2,82 % Table MFIs' lending to non-financial corporations SEK millions Table Housing credit institutions' volumes of lending to households - new loans each month Flexible rate Fixed rate MFIs' lending to Swedish households broken down by collateral Loans with collateral in single-family dwellings, condominiums and tenant-owner apartments collaterals Unsecured credits SEK millions SEK millions SEK millions SEK millions SEK millions SEK millions SEK millions Table Table Convenience credit card and extended credit card credits to Swedish households SEK millions Table 4.22 MFIs' deposits from Swedish households Entrepreneurial households households Glossary SEK millions SEK millions SEK millions Table Glossary a) Monetary financial institutions (MFI) include banks, housing credit institutions, finance companies, local government- and company financing institutions, monetary securities companies and monetary investment funds (money market funds). b) Non-profit institutions serving households

8 Index growth rate The method used to calculate growth rate is based on the method used by the ECB. First a chain- index is calculated Where OB is the opening balance, CB the closing balance and the index I is 100 for the base period. From this, the annual growth rate is calculated as the year's percentage change in the index. The use of the chain- index makes the reclassifications related to the balance of the month in which they occur. The majority of the reclassifications and credit transfers are assumed to occur at the beginning of the period, wherefore the denominators in the equation are adjusted with reclassifications and loan transfers to compensate for the shift in level that would otherwise arise. In order to view all time series within a tab, click on the little button with number 2 in the upper left-hand edge. To hide the series click on button number 1. In order to view any one single time series, click on the button displaying a + sign. In order to hide the time series, click on the button displaying the - sign. More information about open/close time series Index. Adjusted for re-classification of purchased and sold loans. MFI:s lending to Swedish households incl. NPISH and non-financial corporations Money supply, M1, M2 and M3 Base period January 2005 Base period January 2005 Households incl. NPISH Non-financial corporations Total Consumption Housing Total M1 M2 M3 Jul Jul Aug Aug Sep Sep Oct Oct Nov Nov Jan Jan Feb Feb Mar Mar Apr Apr May May

9 1. OVERVIEW 1.1 MFIs' assets The reference sectors' share of MFIs' balance sheet total The reference sectors' share of MFIs' total lending 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% May May May May May May May May - May - May 0% May May May May May May May May - May - May 0% Banks Housing credit inst. Finance companies MFIs Banks Housing credit inst. Finance companies MFIs MFIs' assets, May 31,. SEK millions Balance sheet total Lending Securities Shares and other Derivatives other than shares equities assets Banks Housing credit institutions Finance companies MFI MFI total

10 1.2 MFIs' liabilities The reference sectors' share of MFIs' deposits The reference sectors' share of MFIs' issued securities etc. 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% May May May May May May May May - May - May 0% May May May May May May May May - May - May 0% Banks Housing credit inst. Finance companies MFIs Banks Housing credit inst. Finance companies MFIs MFIs' liabilities, May 31,. SEK millions Balance sheet total Deposits Securities etc Derivatives Equity issued liabilities Banks Housing credit institutions Finance companies MFI MFI total

11 1.3 Lending to and deposits from Swedish non-mfi Lending to Swedish non-mfi, 12-month growth rate Deposits from Swedish non-mfi, 12-month percent change 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% -5% -5% -10% % Households incl NPISH Non-financial corporations Swedish non-mfi Swedish non-mfi Households incl NPISH Non-financial corporations Lending to and deposits from Swedish non-mfi, , SEK millions Lending to Swedish non-mfi of which households of which non-financial corporations Deposits from Swedish non-mfi Banks Housing credit institutions Finance companies MFI MFI total

12 1.4 Lending and deposit rates towards Swedish households and non-financial corporations % MFIs' lending rates % % Banks' deposit rates % Households incl NPISH, period ending Non-financial corporations, period ending Households incl NPISH, period ending Non-financial corporations, period ending MFIs' lending and deposit rates towards Swedish households and non-financial corporations, percent MFIs' lending to Banks' deposits from Households Nonfinancial corporations Households Nonfinancial corporations May-13 3,40 3,15 0,99 0,89 Apr-14 3,01 2,84 0,74 0,66 May-14 3,00 2,83 0,72 0,64

13 1.5 Money supply % Money Supply M1 and M3-12-month percent growth rate M1 Growth rate M3 Growth rate Money supply M1, M2 and M3 12-mon change in 12-mon change in 12-mon change in M1, SEK millions M1, % M2, SEK millions M2, % M3, SEK millions M3, % May , , ,5 Apr , , ,2 May , , ,1 The growth rate are adjusted for re-classifications, please see 4. Method.

14 1.6 Securities issued on the Swedish market in SEK MSEK Outstanding amounts of Debt securities issued on the Swedish market Bond market, Central gov. Bond market, Housing credit inst. Money market, Central gov. Money market, Housing credit inst. To top of sheet/sheet's table of contents 1.7 Appendix for part 1 Overview September In September 2010 table changed and now shows deposit and lending rates from Swedish households and non-financial corporations instead of general public deposit and lending rates. September In September 2010 table changed so that governments issuing of bonds also includes lottery bonds. March. In connection with the March publication the statistics regarding debt securities (Part 6, The Securities Market) have been replaced by new Securities statistics. The new Securities statistics regarding debt securities is available at:

15 2. Money supply 2.1 Diagram Money supply % Money supply M1, M2 and M3-12 month growth rate in percent ( 3 month moving average ) M1 M2 M3 0

16 2.2 Method Money supply Introduction The money supply refers to the quantity of liquid mediums of exchange circulating in society. It is, nevertheless, not obvious what should be included in the definition of money. Normally, a number of measures of differing breadths are defined. The narrowest definition includes only cash while the broader definitions include different types of instruments which can be regarded as substitutes for money. The most usual study of the money supply may be investigations of different money supply measurements as indicators of inflation. The analysis of these aggregates may also be carried out for the purpose of obtaining complementary, primarily short-term, indicators of real activity such as GDP. Another purpose could be to investigate the significance of money in the context of the financial markets influence on demand in the economy. Background In order to measure the quantity of money one usually divides society into different sectors: issuers of money and bearers of money. The actual money supply can thus be defined as the debt instruments of the issuers held by the bearer sectors. Up until and including ember 2005, the issuer sector consisted of Swedish banks. Two central money supply measurements were calculated: Notes and coins held by Swedish non-bank public and, M3 inclusive of deposits in banks as well as certificates of deposit. M3+ also includes the Swedish public's holding of Treasury bills. Of all the foreign central banks is it mainly at the European Central Bank (ECB) that the analysis of money supply aggregates has been given a prominent role. ECB has produced definitions of the money supply for the EU area. One sweeping change in terms of the many previous national measurements was that the issuer sector was broadened so as to not only include the bank sector. Since other financial institutions mediate credit and accept deposits, the concept of Monetary Financial Institutions (MFI) was created. The Riksbank will produce, as of and from January 2006 onward, a set of money supply measurements - Notes and coins held by Swedish non-bank public, M1, M2 and M3 - which will to a great extent be harmonised with the ECB definition. The objective has been to achieve as extensive as possible a harmonisation without unnecessarily increasing the data provision burden on financial institutions. The issuer sector has been broadened to include those liabilities of the MFI and the Swedish National Debt Office (RGK) which are of a monetary nature. Moreover, the debt instruments proposed in the ECB definitions are, for the most part, included in the measurement of the money supply. The handling of foreign branches of Swedish institutions has changed; the new money supply is to be calculated exclusive of foreign branches but including unsettled claims with foreign branches. It has been possible to calculate these money supply measurements in an acceptable way since and including January In the autumn of 2012, ECB revised their guidelines regarding repurchase agreements in the monetary aggregate M3. As a consequence, repurchase agreements that are cleared through central counterparties are excluded from M3. In Europe the clearing of repurchase agreements through central counterparties began in the early 2000s. During the financial crisis the clearing through central counterparties increased, among other things in order to reduce counterparty risk. It is important that the monetary aggregate M3 remains consistent over time with the economic meaning of "money". In M3, MFI repos with non- MFIs are included. In this type of repurchase agreements, CCP never has full disposal of the deposit, but acts only as an intermediary between MFIs. Repurchase agreements that are cleared through a central counterparty should therefore not be included in the money supply. In Sweden, clearing through a central counterparty started in the fall of Repurchase agreements that are cleared through the CCP have in the statistics non- MFIs as counterparty (Financial auxiliaries). In the publication of November Sweden has adapted the above definition of M3. Repurchase agreements to central counterparties have therefore been excluded from M3 back to September By excluding repos with central counterparties back to the start there will be no break in series. For other series than the money supply, however, repurchase agreements with central counterparties are included in lending and deposits to non-mfis. Example of repos with central counterparty : If Bank A instead of a repurchase agreement directly to Bank B uses a central counterparty clearing, then Bank A will have lending in the form of repurchase agreement to the central counterparty (non-mfi), which in turn has lending in the form of a repurchase agreement to Bank B. Bank B then has a deposit in the form of a repurchase agreement from non-mfi. A more detailed description of repurchase agreements to central counterparties and the Money supply can be found in the ECB's "Monthly Bulletin, September 2012" Definition of the new money supply measurements The issuer sector: MFI (and National Debt Office's (RGK) liabilities of a monetary nature) Neutral sector: Central government sector excluding National Debt Office's (RGK) liabilities of a monetary nature The bearer sector (The general public): sectors, that is, local government, social security funds, households including non-profit organisations serving households (NPISH), non-financial corporations and non-monetary financial corporations. Notes and coins held by Swedish non-bank public In practice, notes and coins held by Swedish non-bank public are calculated as the total stock of banknotes and coins in circulation (formally a debt instrument in the Riksbank's balance sheet) minus the Swedish MFI's cash balances in Swedish krona. Since foreigners can also hold Swedish krona in cash, this calculation will yield a slightly overestimated measure of the Swedish public's holdings of banknotes and coins. However, it can be assumed that these foreign holdings are small relative to the total stock of banknotes and coins in circulation. The Swedish definition of banknotes and coins in circulation also includes commemorative coins. In ember 2009 the nominal value of commemorative coins was SEK 658 million. M1 M1 is equal to the sum of notes and coins held by Swedish nonbank public and on-demand deposits in MFI and RGK by the Swedish public. On-demand deposits are defined as overnight loans and deposits in transaction accounts. M3 M3 is equal to the sum of M2, repurchase agreements and the public's holdings of shares in money market funds and interest-bearing securities, with a term to maturity of up to and including 2 years, issued by Swedish MFIs. One practical problem with the calculation of M3 is that interest-bearing securities can be resold on secondary markets. It is hence impossible for the issuers of interestbearing securities to know how much of their debt burden is held by the Swedish public. In order to complete the calculation of M3 without having to seek information from the bearer sector, interest-bearing securities issued by MFIs in SEK is used as an approximation. Swedish MFIs holdings of these securities are excluded. Definition of the old money supply measurements Since financial analysis often requires long time series and the new money supply measurements can only be calculated in a satisfactory manner as of and from January 1998 onward, the publication of notes and coins held by Swedish non-bank public (Foremerly called M0) and M3, according to previous definitions, continues based on monthly data as of and from 1961 onward. Splicing of the time series for new and old money supply measurements has not been carried out in this publication. The Swedish general public's holdings of issued bank certificates are no longer reported. The figures are now estimated, starting in September The issuer sector: The Riksbank and banks. Neutral sector: Housing credit institutions, other monetary credit market companies, monetary securities companies and fund commissioners, other monetary financial institutions (of which none exist today), social security funds, non-monetary securities companies, insurance corporations and pension fund institutions The bearer sector (the general public): sectors, that is, the central government other than RGK, local government, monetary and non-monetary investment funds, financial auxiliaries, non-profit organisations of financial corporations, investment companies, nonmonetary credit market companies, other financial institutions, households including household non-profit organisations (NPISH) and the non-financial business sector. M2 M2 is equal to the sum of M1 and deposits, subject to certain terms, in Swedish MFI and RGK by the Swedish public. These term deposits comprise deposits redeemable at a notice of up to and including 3 months or deposits with a term to maturity of up to and including 2 years. Growth rate For information on how growth rate is calculated see 4. Method.

17 Table of differences between new and old money supply measurements, by sector Money issuing sector New money supply measurements MFI The Central Bank Banks (incl. foreign branches located in Sweden) Housing credit institutions monetary credit market companies Monetary investment funds (money market funds) Monetary securities companies and fund commissioners other monetary financial institutions (of which none exist today) National Debt Office's (RGK) liabilities of a monetary nature The new money supply is calculated exclusive of foreign branches but including transactions with own foreign branches Old money supply measurements The Central Bank Banks (including foreign branches located in Sweden) The former money supply was calculated including foreign branches Neutral sector Central government excluding National Debt Office's (RGK) Housing credit institutions liabilities of a monetary nature monetary credit market companies Monetary securities companies and fund commissioners other monetary financial institutions (of which none exist today) Social security funds Non-monetary securities companies and insurance corporations and pension funds Money holding sector / Local government Central government excluding National Debt Office (RGK) Non-bank public Non-monetary investment funds Local government Financial auxiliaries Monetary investment funds (money market funds) Non-profit institutions serving financial corporations Non-monetary investment funds Investment companies Financial auxiliaries Non-monetary credit market companies Non-profit institutions serving financial corporations financial institutions Investment companies Non-financial corporations Non-monetary credit market companies Households including NPISH financial institutions Social security funds Non-financial corporations Non-monetary securities companies and fund commissioners Households including NPISH Insurance corporations and pension funds

18 2.3 Money supply, Notes and coins held by Swedish non-bank public, M1, M2 and M3 Period ending stock, SEK millions Notes and coins in circulation Notes and coins Notes and coins held by Swedish held by MFIs Swedish nonbank public On demand-deposits in MFI and government sector, from Swedish non-bank public of which Financial corporate sector, not MFI Non-financial corporations Local government and Social securities fund Households excl. NPISH Non-profit institutionsserving households M1 (a) (b) (c)=(a)-(b) (d) (e)=(c)+(d) SEK SEK SEK TOT SEK For. cur. TOT TOT TOT TOT TOT TOT Jul Aug Sep Oct Nov Jan Feb Mar Apr May Continue money supply, Notes and coins held by Swedish non-bank public, M1, M2 and M3 of which Financial corporate sector, not MFI Non-financial corporations Local government and Social securities fund Households excl. NPISH Non-profit institutionsserving households M2 Repurchase agreements Money market fund shares Debt securities issued 2 yrs by MFIs, held by Swedish non-bank public (k) = (f) (g)=(e)+(f) (h) (i) (j) (g)+(h)+(i)+(j) TOT SEK For. cur. TOT TOT TOT TOT TOT TOT TOT TOT TOT TOT Jul Aug Sep Oct Nov Jan Feb Mar Apr May May : Revised figures Deposits with certain conditions in MFI and government sector, from Swedish non-bank public M3

19 2.4 Money supply, Notes and coins held by Swedish non-bank public, M1, M2 and M3 12-month percentage change Annual growth rate %, adjusted for reclassifications 12-month percentage change Notes & coins Sw M1 Stock non-bank public change M1 Growth rate M2 Stock change M2 Growth rate M3 M3 Growth rate Notes & coins Sw non-bank public 12-month percentage change in 3 month moving average M1 Stock change M1 Growth rate M2 Stock change M2 Growth rate M3 M3 Growth rate Jul -2,5 7,2 6,0 4,8 4,8 4,0 3,7-1,3 7,1 5,9 5,1 5,1 3,8 3,4 Aug -1,9 7,5 6,2 4,9 4,9 3,1 2,7-1,9 7,1 5,8 4,8 4,8 3,8 3,5 Sep -2,5 6,1 4,9 3,3 3,3 1,3 1,0-2,3 6,9 5,7 4,4 4,4 2,8 2,5 Oct -4,8 7,0 5,8 4,9 4,9 2,9 2,6-3,1 6,9 5,7 4,4 4,4 2,4 2,1 Nov -5,6 7,9 7,9 6,5 6,5 4,0 3,7-4,3 7,0 6,2 4,9 4,9 2,7 2,4-6,4 9,0 9,0 5,7 5,7 3,1 2,8-5,6 8,0 7,6 5,7 5,7 3,3 3,0 Jan -8,1 8,7 8,7 5,5 5,5 2,3 2,3-6,7 8,5 8,5 5,9 5,9 3,1 2,9 Feb -8,4 9,8 9,8 6,5 6,5 3,4 3,3-7,6 9,2 9,2 5,9 5,9 2,9 2,8 Mar -10,4 7,4 7,4 4,1 4,1 3,0 3,0-8,9 8,6 8,6 5,4 5,4 2,9 2,9 Apr -8,7 9,1 9,1 5,3 5,3 4,2 4,2-9,2 8,8 8,8 5,3 5,3 3,5 3,5 May -10,1 10,1 10,1 6,6 6,6 4,1 4,1-9,8 8,9 8,9 5,3 5,3 3,8 3,8

20 2.5 Former definition of Money supply, Notes and coins held by Swedish non-bank public and M3 Period ending stock, SEK millions Notes & coins Money Swedish non Bank deposits from Swedish non-bank public Bank- supply -bank public Total Households Non-financial corporate sector certificates a) M3 TOT SEK For. cur. SEK For. cur. SEK For. cur. SEK For. cur. SEK TOT Jul Aug Sep Oct Nov Jan Feb Mar Apr May

21 2.6 Monetary base Period ending stock, SEK millions Notes and coins in circulation Liabilities related to monetary policy operations of which Deposit facility Fine-tuning operations deposits deposits from credit institutions Debt certificates issued by The Riksbank Monetary base (a) (b) (c) (d) (e)= (a)+(b)+(c)+(d) SEK SEK SEK SEK SEK SEK SEK SEK Jul Aug Sep Oct Nov Jan Feb Mar Apr May

22 2.7 Appendix for part 2 Money supply a) From September 2010 issued bank certificate held by Swedish public are estimated values. From September 2010 the bank certificate refers to book values in distinction to earlier periods where nominal values were used. b) Before ember 2002 the growth rates are calculated as the change in stock. ember In ember 2003 a reporting institution reclassified parts of deposits. Deposits with certain conditions were transferred to on-demand deposits. April As of and from April 2009 onward monetary investment funds (money market funds), are included in the MFI reference sector. Due to this the historical money supply figures have been slightly revised. November In November 2009 a reporting institution reclassified parts of deposits. Deposits with certain conditions were transferred to on-demand deposits. September Table 2.3 have been revised for the time period January 1998-February 2002 due to an update of the included reporting institutions. The annual growth rate (table 2.4) have been revised for January 1999-February October Revisions for debt securities issued (column j) for January 2008-September November A number of accounts with restricted number of free withdrawals have previously been classified as on-demand deposits.they are re-classified to deposits with certain conditions. This affects M1 which decreases with SEK billion for the period ember 2003-October Smaller revisions have also been made November A change in conditions has resulted in a reclassification from deposits with certain conditions to on-demand deposits. ember In ember 2011 debt issued securities were revised from January November The growth rate of M3 in Table 2.4 have been revised for January - November April Revised figures from January 2012 until March 2012 due to change in definition in money market funds. As a consequence of this Swedish non-bank public holdings in money market shares is reduced with approximately SEK 72 billions. The change in definition are due to harmonising according to European standards which decreases the number of money markets funds. November. In 2012, ECB decided that repurchase agreements with central counterparties (CCP) should be excluded from M3. In Sweden, clearing with central counterparties started in september 2010.

23 3. BALANCE SHEETS 3.1 Diagram balance sheets MSEK MFIs' assets by instrument MSEK MFIs' liabilities by instrument Lending Securities other than shares Shares and other equities Derivatives assets Deposits Securities etc issued Derivatives liabilities Equity