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IPS177 Sayako K. M. et al.
This feature has not changed (Chart 3) Proportion of issues with long
significantly since 2012, but remaining maturity
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OFCs , which account for around
20% of the total debt securities,
has gradually increased the ratio
of foreign currency issues,
reflecting the recent increase in
TLAC bonds issues by Japanese
bank holding companies to
support their growing overseas
business. The NFCs have also
increased foreign currency note: more than one year in the remaining
issues partly due to their strong maturity
demands for foreign currency in
the midst of recent corporate overseas development and business expansion.
Meanwhile, it has to be noted that estimation accuracy for the NFC figures are
relatively low as they are calculated as residuals.
The maturity structure by economic sector in Chart 3 shows that debt
securities with a remaining maturity of more than one year make up more than
two-thirds of the total debt securities outstanding. With regard to the
government bonds, an increase of the outstanding amount with long
remaining maturity reflects the strong demand from institutional investors
such as insurance companies and pension funds to balance the maturity of
assets and liabilities. In addition, the "Debt Management Report 2018"
released by the Ministry of Finance Japan explains that "in a bid to reduce
future interest rate hike risks in the low interest rate environment, the
government has lengthened the average maturity of JGB issues in recent
years."

3. Institutional Sector Accounts
3.1 Requirements
Recommendation II.8 on institutional sector accounts calls for "the G-20
economies to compile and disseminate, on a quarterly and annual frequency,
sectoral accounts flows and balance sheet data, based on the internationally
agreed template, including data for the other (non-bank) financial
corporations sector, and develop from-whom-to-whom matrices for both
transactions and stocks to support balance sheet analysis." The template of
institutional sector accounts consists of three parts: (1) a general template
(principal target for 2021); (2) a template for the collection of data on shadow

OFCs issuing debt securities include: nonbanks; public financial institutions; financial dealers
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and brokers; financial auxiliaries; and public captive financial institutions.
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