Transcript Document
National Balance Sheet
Accounts in Israel
Methods and Uses
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Contents
• Introduction
• Sources and Methods
• Main findings - 2011
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Introduction
• The national balance sheet accounts were
first published in 2002 for the year 1995.
• Since then the balance sheets have been
prepared for the years 2001 to 2011.
• Over the years some changes have been
made (no’ of sub sectors and types of
instruments).
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Sources and Methods
• The value of asset/liability can be
derived from :
- method related to an institutional
sector
- distribution of the total value of
an asset/liability among various
sectors.
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Sources and Methods
• First phase: assets and liabilities are
recorded in accordance with the data in
each sector’s financial statements.
• Second phase: comparison between
the sums of assets and the
corresponding liabilities. Choosing the
most reliable estimate.
• Third phase: if no information is
available we use the “counterpart”
method or the “residual derivation”
method.
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Sources and Methods
• Non Financial Corporations, Other
Financial Intermediaries and
Financial Auxiliaries – based on the
analysis of the balance sheets of the
corporations.
• Households – balance sheets of
other sectors and information about
specific assets known for the
households (deposits and loans).
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Sources and Methods
• Deposit Money Corporations – the main
source is the Central Bank, Supervisor
of banks, and some details are
collected directly from the large banks.
• Pension and Provident Funds and
Insurance Corporations – the source is
the report of Capital Market of the
Insurance and Saving division of the
Ministry of Finance.
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Sources and Methods
• Central Government – the source is
the Ministry of Finance, Office of the
Accountant General.
• NPISH and GNPI – survey of balance
sheets for public and private NPI
held by the CBS.
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Sources and Methods
• The Tel Aviv Stock Exchange is the
source for the market values of the
quoted governmental bonds, quoted
private bonds and shares.
• The source for the non financial assets
is the net capital stock calculated in the
NA using the PIM method (doesn’t
include land).
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Plans for the future
• Breakdown of assets and liabilities
by maturity (to analyze liquidity risks).
• Compilation of up-to-date full quarterly
national balance sheets.
• Adjustment to SNA 2008
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Main findings - 2011
• Israel’s total national wealth – NIS
2,091 billion, which is 2.4 times GDP.
• The total assets – NIS 7,250 billion,
which is 8.3 times GDP.
• The government debt (mainly bonds)
– NIS 656 billion.
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Main findings - 2011
• The total credit – NIS 1,763 billion.
The loans from the banks – 44% from the
total credit. Were mainly given to NonFinancial Corporations (33%) and the
households (42%).
Total credit to Non-Financial Corporations NIS 502 billion
Total credit to the Households – NIS 413
billion.
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Distribution of assets - 2011
Non
Financial
Corporation
s 17.6%
Households
and NPISH
42.1%
Financial
Corporation
s 32.6%
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Governmen
t, Local
Authorities
and GNPI,
7.7%
Distribution of liabilities - 2011
Non
Financial
Corporations
17%
Financial
Corporations
52%
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Households
and NPISH
10%
Government,
Local
Authorities
and GNPI
21%
Ratio of financial assets to nonfinancial assets
3.20
3.10
3.00
2.90
2.80
2.70
2.60
2.50
2.40
2.30
3.09
3.00
2.62
YEAR
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3.05
Conclusions
• The balance sheets were first developed
within the NA.
• The collaboration with the Central Bank
has proved fruitful and has lead to wider
use of the balance sheets, mainly for
financial stability.
• The constant development of the balance
sheets will make it possible to have
further analyses in the future.
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