Page 462 - Invited Paper Session (IPS) - Volume 1

IPS177 Sayako K. M. et al.
banking (a more advanced ambition); and (3) a template for the collection of
from-whom-to-whom data (a more advanced ambition). This section focuses
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on our progress on the general template . The BOJ has been working on
compiling the sectoral financial balance sheet of the general template of (1) in
collaboration with the Cabinet Office.
3.2 What are our challenges?
There are primarily three issues in compiling the financial accounts: (1)
breaking down of loans and debt securities by currency type and maturity
(original and remaining) on both the asset and liability sides of each economic
sector; (2) breaking down foreign securities in the FFA into respective
transaction categories, debt securities, equities, and investment trusts in
alignment with the DGI-2 template; and (3) breaking down foreign direct
investment in the FFA into respective transaction categories, debt securities,
equities, etc. The following section introduces the methodology for (2)
mentioned above and the tentative results of foreign debt securities whereas
both (1) and (3) are left as future issues.
3.3 Methodology
The foreign securities termed as outward investment in securities in the
FFA include foreign debt securities, foreign equities, and foreign investment
funds by definition, however, these three sub-components are not compiled
in the FFA. In the absence of microdata, we take the following steps to measure
the three sub-components.
• Investigate data sources for the breakdown of foreign securities. The
data availability varies with each sector. Major data sources include
financial balance sheets publicly available and sharing information on
bank examination and monitoring, etc.
If the source data are available, proceed through either the following (1)
or (2).
(1) If the data cover an entire sector, reporting data are compiled by
grossing up the source data without any estimation.
(2) If the data have limited coverage, consider if the data can be used as
a benchmark to estimate an entire sector.
• If the data are not available, examine an alternative methodology
based on relevant assumptions. The alternative solutions include: (a)
use the same composition ratio (foreign debt securities, foreign
equities, and foreign investment funds) with that of similar
industries/entities which have common features in business structures;

G-20 DGI templates are available from Principal Global Indicator’ website
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(http://www.principalglobalindicators.org/?sk=E30FAADE-77D0-4F8E-953C-
C48DD9D14735&sId=1452784383161).
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