Page 247 - Invited Paper Session (IPS) - Volume 1

IPS152 Paul F.
3.4 Entities performing loan origination
Finally, some entities grant loan to non-affiliated entities. Their magnitude
is much smaller than that of the three previous types. Loans outside the group
are classified Other Investment.
In addition, main counterpart countries for operations of Luxembourg
SPEs are US, GB, IE and NL. Operations with US have been declining since 2017,
probably because of the tax reform.

4. Selected methodological issues on SPEs statistics
Luxembourg survey strategy on captive financial institutions
Captive Financial Institutions provide the BCL with a monthly security-by-
security report and a quarterly full balance sheet. The BCL is therefore in a
position to keep track of large and frequent balance sheet movements in an
efficient manner. In a nutshell, the BCL collects positions and derives
transactions. An ad hoc editing system spots large variations of positions (at a
monthly basis on security items and on a quarterly basis for remaining items).
There are indeed some blurred lines between transactions and price effects. A
super dividend or a share premium would bring about a transaction, while an
impairment would generate a price effect.

Editing system for SPEs operations
Luxembourg SPEs hold and issue illiquid financial instruments. The
integration of those institutions to Luxembourg b.o.p./i.i.p. requires an ad hoc
editing system, at semi aggregate and aggregate levels.

- Semi aggregate level
As has been previously emphasized, MNEs set up a network of financial
institutions in Luxembourg. The network as a whole, takes external liabilities

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