Table 11.3
Example of imports of Financial Services Indirectly Measured (FSIM)

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  Canadian residents deposits in other countries Canadian residents borrowing in other countries
dollars

Value of deposits or loans of Canadian residents in other countries

Empty cell  600 Empty cell  500

Observed flow (interest received or paid)

(600 × 8%) 48 (500 × 12%) 60

Flow at reference rate2 (interest received and implicitly received or paid and implicitly paid)

(600 × 10%) 60 (500 × 10%) 50

Implicit service charges (FSIM)

(60 - 48) 12 (60 - 50) 10

FSIM imports1

(deposits portion + borrowing portion): (12 + 10 = 22)

1. FSIM imports are implicit service charges paid by Canadian residents to residents of other countries.

2. A reference rate represents the pure cost of borrowing funds - that is, a rate from which the risk premium had been eliminated to the greatest extent possible and which does not include any intermediation services. A rate of 10% is used in this table.

Source: Guide to the Income and Expenditure Accounts, Statistics Canada, catalogue no.13-017-X