Latest Developments in the Canadian Economic Accounts
An overview of revisions to the Financial and Wealth Accounts, 1990 to 2019

Release date: December 13, 2019

Background

Statistical revisions are carried out regularly in the Canadian System of Macroeconomic Accounts (CSMA) to incorporate the most current information available. Generally, these revisions are limited to the months or quarters within a given reference year, or, on an annual basis, to the preceding two to three years.

Periodically, comprehensive revisions are conducted, which generally entail revisions beyond the scope of the standard revision window. These provide an opportunity to enhance estimation methods and incorporate improved data sources and concepts.

A number of comprehensive revisions were incorporated in the third quarter 2019 release of the Financial and Wealth Accounts (FWA), which is comprised of the Financial Flow Accounts (FFA), the Other Changes in Assets Account (OCAA) and the National Balance Sheet Accounts (NBSA), and which represents an integrated set of accounts within the larger Canadian System of Macroeconomic Accounts (CSMA). The revisions were carried back to 1990 for certain instruments and sectors.

There were three main sources of revisions with the third quarter 2019 release of the FWA: the incorporation of new financial sectors, which resulted in new and restructured financial sub-sectors; the inclusion of additional instruments into a from-whom-to-whom (FWTW) framework; and statistical revisions arising from updates to specific concepts and methodologies. Altogether, these updates further align the FWA to international guidelines for compiling national accounts such as the System of National Accounts 2008 (SNA2008).

Extension to the existing classification of financial sectors

The FWA publishes a detailed set of accounts by institutional sector. The coverage of these sectors is comprehensive and greatly expands upon the five main institutional sectors that make up the domestic economy, namely non-financial corporations, financial corporations, general government, non-profit institutions serving households, and households. A detailed delineation of sub-sectors exists within the financial corporations sector. This is in recognition of their crucial role in the financial system at large and in their capacity as financial intermediaries and repositories of wealth.

The sector classification standard currently used in the CSMA is the Canadian Classification of Institutional Units and Sectors 2012 (CCIUS2012). This classification reflects many particularities of the Canadian economy and deviates to a degree from the SNA2008 recommendations. While the sector classification used in the FWA is generally aligned with the recommended Canadian and international standards, notable differences exist.

As a result, to improve sectoring within the FWA, selected financial sectors were re-aligned with the internationally standardized nomenclature and a catch-all sector was decomposed into more distinct and analytically useful sub-sectors where distinctive business models and intermediation activities could be better isolated. This will increase the analytical usefulness and transparency of the estimates by providing better distinctions between entities based on the risk they assume and the role they serve in the financial system. Additionally, many domestic and international stakeholders including policy makers, government departments and agencies, and international organizations require more detailed information to better understand and identify financial vulnerabilities within the financial system. More precise sector delineations help support these goals.

Table 1 presents the current classification of financial sectors used in the FWA, highlighting where changes have been made. Specifically, the previous sector “Other financial institutions” has been decomposed into four new sub-sectors. “Sales, finance and consumer loan companies” now includes other non-depository intermediaries and has been renamed to “Financial corporations engaged in lending”. “Asset-backed securities” has been re-titled “Financial vehicle corporations engaged in securitization transactions”. Finally, certain sectors have been grouped under the new aggregate “Other financial intermediaries, except insurance corporations and pension funds”.


Table 1
Summary of changes to the financial corporations sector classification
Table summary
This table displays the results of Summary of changes to the financial corporations sector classification. The information is grouped by New sector classification for Financial corporations (appearing as row headers), Summary of changes (appearing as column headers).
New sector classification for Financial corporations Summary of changes
Financial corporations No changes
Total monetary authorities No changes
Total chartered banks and quasi-banks No changes
Chartered banks No changes
Quasi-banks No changes
Insurance and pension funds No changes
Life insurance business No changes
Segregated funds of life insurance companies No changes
Trusteed pension plans No changes
Property and casualty insurance companies No changes
Total other private financial institutions No changes
Mutual funds Improved coverage of closed-end funds
Money market funds No changes
Other mutual funds Improved coverage of closed-end funds
Other financial intermediaries, except insurance corporations and pension funds New aggregation of sub-sectors
Financial vehicle corporations engaged in securitization transactions Renamed from ''Issuers of asset-backed securities''
Financial corporations engaged in lending Renamed from “Sales, finance and consumer loan companies” and expanded to include other non-depository credit intermediaries.
Security and derivative dealers The previously published sector “Other private financial institutions” has been decomposed into these new sectors.
Specialized financial corporations and other financial intermediaries
Financial auxiliaries
Captive financial institutions and money lenders

Extension of the From-Whom-to-Whom framework

A complimentary approach for identifying systemic risk in the financial system and enhancing analytical usefulness in the FWA involves the compilation of financial transactions and balance sheet information within a From-Whom-To-Whom (FWTW) framework.  This approach explicitly identifies the financial interconnectedness across all sectors of the economy by linking financial assets and liabilities with their corresponding counterparties (i.e., a debtor borrowing funds from a creditor represents the two sides of a contractual loan agreement). This greatly aids in the identification of financial vulnerabilities and how risk may impact the broader financial system.

With the third quarter 2019 release of the FWA three new instruments have been added to the FWTW data visualization tool: currency and deposits in both domestic and foreign currencies and consumer credit. In the case of currency and deposits there are multiple options for where depositors can place their money. This adds to the complexity of the counterparty relationships, but also provides a powerful tool for examining the coherence of estimates. For this reason, the development of FWTW estimates for certain instruments also resulted in statistical revisions at the aggregate level.


Table 2
A comparison of detail available in Financial and Wealth Accounts versus a From-Whom-to-Whom framework
Table summary
This table displays the results of A comparison of detail available in Financial and Wealth Accounts versus a From-Whom-to-Whom framework Third quarter 2018, Fourth quarter 2018, First quarter 2019, Second quarter 2019 and Third quarter 2019, calculated using millions of dollars units of measure (appearing as column headers).
Third quarter 2018 Fourth quarter 2018 First quarter 2019 Second quarter 2019 Third quarter 2019
millions of dollars
Financial and Wealth Accounts
Household currency and deposit assets 1,335,149 1,371,200 1,381,226 1,402,089 1,417,911
From-Whom-to-Whom
Liabilities with households 1,335,149 1,371,200 1,381,226 1,402,089 1,417,911
Total monetary authorities 57,931 58,881 58,718 59,918 60,091
Chartered banks 980,674 1,010,508 1,015,232 1,028,084 1,041,641
Quasi-banks 272,767 277,445 282,863 289,576 291,557
Financial government business enterprises 19,755 20,334 20,339 20,439 20,504
Federal government 4,022 4,032 4,074 4,072 4,118

Other statistical, conceptual, and methodological revisions

Securities reconciliation and integration—equities

The International Accounts and Trade Division (IATD) at Statistics Canada produces information on securities statistics. This includes debt securities such as bonds and commercial paper and equities such as shares listed on public exchanges. As part of the comprehensive revision, updated information for debt securities, which had been previously incorporated into the FWA, was integrated across a number of instruments on the issuer (liability) side. Additionally, to coincide with IATD's release of detailed information on equities, the FWA conducted a reconciliation exercise to align listed share liabilities by institutional sector. Some differences exist between the FWA and IATD due to classification and methodological differences and these will be addressed going forward.

Chart 1 Total listed share liabilities, Financial Wealth Accounts versus Securities Statistics

Data table for Chart 1 
Data table for Chart 1
Table summary
This table displays the results of Data table for Chart 1 Canadian listed shares, Financial Wealth Accounts and Canadian listed shares, Securities Statistics , calculated using billions of $ units of measure (appearing as column headers).
Canadian listed shares, Financial Wealth Accounts Canadian listed shares, Securities Statistics
billions of $
2015
Quarter 1 2,351 2,289
Quarter 2 2,302 2,238
Quarter 3 2,089 2,029
Quarter 4 2,061 2,014
2016
Quarter 1 2,148 2,100
Quarter 2 2,266 2,210
Quarter 3 2,400 2,337
Quarter 4 2,510 2,443
2017
Quarter 1 2,610 2,543
Quarter 2 2,576 2,504
Quarter 3 2,655 2,582
Quarter 4 2,766 2,695
2018
Quarter 1 2,631 2,560
Quarter 2 2,779 2,708
Quarter 3 2,760 2,680
Quarter 4 2,442 2,373
2019
Quarter 1 2,751 2,667
Quarter 2 2,767 2,681
Quarter 3 2,791 2,706

Revisions to other sectors and instruments

Table 3 summarizes other changes that were incorporated into certain FWA time series.


Table 3
Other changes incorporated into the Financial and Wealth Accounts (FWA) time series
Table summary
This table displays the results of Other changes incorporated into the Financial and Wealth Accounts (FWA) time series. The information is grouped by Revision (appearing as row headers), Description of change (appearing as column headers).
Revision Description of change
Revisions and reclassifications to currency and deposits

Statistics Canada uses aggregate information provided by Canadian chartered banks and other deposit-taking institutions to estimate the stock of currency and deposits by sector. This information follows prevailing business accounting rules in classifying chartered bank deposit liabilities. As such, it includes covered bonds, bearer-deposit notes, and other securities issued by chartered banks. In the past these bank liabilities have been re-classified to bonds and other short-term securities from currency and deposits to better align with recommended international macroeconomic accounting standards. With this revision additional amounts of negotiable securities contained in currency and bank deposit liabilities were identified and re-classified. Additionally, the information used to estimate non-resident currency and deposit assets held by Canadian banks also underwent significant reclassification to better delineate securities and ensure these securities were only being accounted for in one instrument.

Additionally, the treatment of cash and coins in circulation was revisited resulting in re-allocations between primarily the household and non-financial corporations sectors. This was done to better reflect the distribution of physical cash and coins held by Canadian households and businesses such as retailers that have physical cash on premises.

Revised treatment of bankers' acceptances Previously, the FWA did not fully articulate the role of banks as intermediaries regarding bankers’ acceptances. This treatment has been revised to identify the relationship between banks and non-financial corporations as one of lender and borrower with the latter having a loan liability with banks, who possess the corresponding loan asset and who are shown as issuers of these acceptances that can be bought and sold on financial markets. The end result was a reduction in short-term paper liabilities for non-financial corporations with a corresponding increase in their loan liabilities with banks. Overall, the total liabilities of non-financial corporations did not change because of this new methodology. For the chartered banking sector, total lending increased by the amount attributed to the loan aspect of bankers’ acceptances while short-term paper liabilities of banks increased by the amount of bankers’ acceptances issued by the institutions (i.e., excluding own acceptances purchased).
Revisions to household sector non-mortgage loans and consumer liabilities Revisions to household non-mortgage and consumer credit liabilities were primarily due to the incorporation of updated information on student loans as well as data on credit unions.
Enhanced coverage of closed-end funds in the Other mutual funds sector The Other mutual funds sector now includes closed-end funds that were not captured in existing data sources. While the levels of assets of these types of funds are relatively small this helps lay the groundwork for a more granular accounting of open versus closed-end funds.
Revisions to foreign direct investment in equity to better delineate listed from unlisted shares in the FWA In the FWA a distinction is made between equities that are listed on public exchanges and those that are not. To improve the split between listed and unlisted shares in the FWA, work was undertaken to obtain information on the shares of foreign direct investment, previously considered as unlisted shares, that was in fact publically listed. These amounts were subsequently re-classified as listed equity in the FWA.

Chart 2 Revisions to currency and deposits assets, private non-financial corporations

Data table for Chart 2 
Data table for Chart 2
Table summary
This table displays the results of Data table for Chart 2 Currency and deposits, current and Currency and deposits, published, calculated using billions of $ units of measure (appearing as column headers).
Currency and deposits, current Currency and deposits, published
billions of $
1990
Quarter 1 37,970 35,970
Quarter 2 38,751 35,251
Quarter 3 38,302 37,302
Quarter 4 44,425 44,425
1994
Quarter 1 39,525 40,525
Quarter 2 43,493 43,993
Quarter 3 42,152 43,152
Quarter 4 44,488 45,988
1992
Quarter 1 43,627 45,127
Quarter 2 46,614 48,114
Quarter 3 48,455 49,955
Quarter 4 52,170 52,170
1993
Quarter 1 48,176 48,176
Quarter 2 57,430 57,430
Quarter 3 53,385 53,385
Quarter 4 55,236 55,236
1994
Quarter 1 55,124 55,124
Quarter 2 49,120 53,120
Quarter 3 54,236 57,236
Quarter 4 54,418 55,418
1995
Quarter 1 52,770 53,770
Quarter 2 52,573 55,573
Quarter 3 51,522 57,522
Quarter 4 51,061 52,061
1996
Quarter 1 49,643 50,643
Quarter 2 56,328 57,328
Quarter 3 57,879 58,879
Quarter 4 60,107 62,607
1997
Quarter 1 55,420 57,420
Quarter 2 56,869 61,369
Quarter 3 65,478 65,478
Quarter 4 74,558 76,558
1998
Quarter 1 75,678 76,678
Quarter 2 87,252 89,252
Quarter 3 91,054 92,054
Quarter 4 87,864 88,864
1999
Quarter 1 97,450 97,450
Quarter 2 104,726 106,726
Quarter 3 105,697 105,697
Quarter 4 115,145 115,145
2000
Quarter 1 123,221 123,221
Quarter 2 121,204 121,204
Quarter 3 130,667 130,667
Quarter 4 121,061 121,061
2001
Quarter 1 127,880 127,880
Quarter 2 133,800 133,800
Quarter 3 130,327 130,327
Quarter 4 145,876 145,876
2002
Quarter 1 141,111 145,111
Quarter 2 147,922 150,922
Quarter 3 146,837 147,837
Quarter 4 156,687 157,687
2003
Quarter 1 153,783 153,783
Quarter 2 175,254 175,254
Quarter 3 170,877 171,877
Quarter 4 175,519 178,519
2004
Quarter 1 186,146 186,146
Quarter 2 200,599 200,599
Quarter 3 193,494 194,994
Quarter 4 200,939 204,439
2005
Quarter 1 204,983 204,983
Quarter 2 212,928 212,928
Quarter 3 215,043 215,543
Quarter 4 218,701 218,701
2006
Quarter 1 217,440 217,440
Quarter 2 226,119 226,119
Quarter 3 227,065 227,065
Quarter 4 238,611 238,611
2007
Quarter 1 244,327 244,327
Quarter 2 252,059 252,059
Quarter 3 265,394 265,394
Quarter 4 268,088 268,088
2008
Quarter 1 248,608 246,894
Quarter 2 277,600 275,633
Quarter 3 271,839 273,879
Quarter 4 280,880 286,000
2009
Quarter 1 279,643 279,424
Quarter 2 279,925 284,547
Quarter 3 278,548 286,571
Quarter 4 290,360 294,018
2010
Quarter 1 277,984 281,410
Quarter 2 295,905 301,364
Quarter 3 304,902 309,220
Quarter 4 303,909 307,101
2011
Quarter 1 314,566 316,588
Quarter 2 317,648 319,160
Quarter 3 335,132 341,156
Quarter 4 325,638 337,691
2012
Quarter 1 320,458 336,311
Quarter 2 333,344 350,678
Quarter 3 335,131 343,836
Quarter 4 341,489 360,982
2013
Quarter 1 353,907 375,942
Quarter 2 365,803 389,212
Quarter 3 372,772 400,083
Quarter 4 381,402 399,898
2014
Quarter 1 379,480 425,421
Quarter 2 384,148 403,173
Quarter 3 407,458 436,088
Quarter 4 395,442 432,470
2015
Quarter 1 419,229 440,781
Quarter 2 415,531 425,815
Quarter 3 426,135 430,501
Quarter 4 429,481 438,433
2016
Quarter 1 426,766 420,277
Quarter 2 436,398 451,763
Quarter 3 444,395 458,843
Quarter 4 471,397 481,597
2017
Quarter 1 473,476 484,186
Quarter 2 491,486 505,871
Quarter 3 495,125 498,507
Quarter 4 496,577 497,858
2018
Quarter 1 492,829 501,097
Quarter 2 500,173 518,758
Quarter 3 505,666 522,306
Quarter 4 524,189 543,730
2019
Quarter 1 496,542 510,459
Quarter 2 522,459 545,189

Chart 3 Revisions to short-term paper and non-mortgage loan liabilities, private non-financial corporations

Data table for Chart 3 
Data table for Chart 3
Table summary
This table displays the results of Data table for Chart 3 Short-term paper, current, Short-term paper, published, Non-mortgage loans, current and Non-mortgage loans, published, calculated using billions of $ units of measure (appearing as column headers).
Short-term paper, current Short-term paper, published Non-mortgage loans, current Non-mortgage loans, published
billions of $
1990
Quarter 1 10,206 48,226 181,092 159,181
Quarter 2 10,641 51,787 184,743 160,388
Quarter 3 12,057 53,700 184,906 160,511
Quarter 4 12,511 49,620 183,239 162,950
1994
Quarter 1 11,318 46,103 183,045 166,614
Quarter 2 10,031 41,322 179,111 175,451
Quarter 3 9,643 41,944 176,487 161,754
Quarter 4 8,747 37,898 177,952 163,364
1992
Quarter 1 9,135 31,334 177,407 170,694
Quarter 2 9,663 34,133 176,648 169,355
Quarter 3 7,884 34,465 175,130 174,028
Quarter 4 6,988 24,458 171,473 185,301
1993
Quarter 1 8,409 24,646 167,781 177,985
Quarter 2 10,060 29,783 167,544 172,759
Quarter 3 11,202 33,453 169,805 169,979
Quarter 4 11,229 30,400 169,720 182,596
1994
Quarter 1 10,894 29,726 169,689 183,227
Quarter 2 12,708 32,303 171,977 180,218
Quarter 3 12,886 34,339 171,410 178,612
Quarter 4 11,829 31,436 176,507 179,148
1995
Quarter 1 13,103 37,259 182,115 172,366
Quarter 2 11,389 34,781 184,325 174,962
Quarter 3 10,574 36,402 182,022 168,618
Quarter 4 12,032 33,733 190,623 175,226
1996
Quarter 1 13,641 36,779 197,705 176,453
Quarter 2 15,364 37,874 193,037 176,266
Quarter 3 16,436 37,193 192,900 177,157
Quarter 4 17,875 51,840 191,980 192,522
1997
Quarter 1 19,293 55,506 201,667 192,114
Quarter 2 20,356 59,085 209,926 198,020
Quarter 3 22,475 62,433 214,258 199,297
Quarter 4 20,646 60,819 216,653 210,609
1998
Quarter 1 23,940 66,601 227,853 211,074
Quarter 2 25,706 69,722 235,019 219,970
Quarter 3 28,022 73,876 235,417 214,077
Quarter 4 23,492 69,415 234,947 215,659
1999
Quarter 1 26,994 74,305 238,633 230,369
Quarter 2 28,633 76,611 233,673 239,449
Quarter 3 28,391 75,209 231,229 233,597
Quarter 4 29,053 76,116 235,504 230,212
2000
Quarter 1 29,214 79,907 252,638 239,094
Quarter 2 30,767 81,653 258,032 242,235
Quarter 3 31,854 83,017 257,520 245,287
Quarter 4 29,247 80,764 255,162 242,256
2001
Quarter 1 28,383 78,894 269,301 247,708
Quarter 2 27,449 74,472 262,327 248,783
Quarter 3 28,895 75,719 264,467 260,622
Quarter 4 28,156 72,443 257,119 246,972
2002
Quarter 1 32,006 76,831 264,719 254,771
Quarter 2 28,613 69,655 260,288 246,141
Quarter 3 26,829 68,012 254,609 231,957
Quarter 4 24,608 61,988 256,202 233,621
2003
Quarter 1 21,547 61,810 240,635 224,182
Quarter 2 17,145 53,843 236,521 220,910
Quarter 3 17,793 53,900 230,684 213,703
Quarter 4 16,764 49,081 224,630 211,926
2004
Quarter 1 15,979 49,459 232,787 207,640
Quarter 2 15,393 49,229 234,473 213,112
Quarter 3 16,540 49,604 228,434 203,514
Quarter 4 16,556 49,122 231,438 206,085
2005
Quarter 1 17,264 51,940 229,152 199,150
Quarter 2 14,865 50,259 235,990 204,446
Quarter 3 14,765 53,022 237,293 202,100
Quarter 4 13,585 52,686 236,550 197,952
2006
Quarter 1 14,536 58,858 248,892 206,341
Quarter 2 14,935 60,791 258,299 212,606
Quarter 3 14,362 62,066 261,177 207,685
Quarter 4 15,006 67,773 266,057 217,883
2007
Quarter 1 15,337 70,469 276,313 218,314
Quarter 2 13,215 69,685 286,895 240,827
Quarter 3 10,908 72,576 301,432 249,285
Quarter 4 12,776 72,426 317,897 265,623
2008
Quarter 1 15,973 79,292 325,643 269,601
Quarter 2 17,074 77,663 318,044 262,393
Quarter 3 16,590 76,212 322,653 272,646
Quarter 4 10,204 74,190 347,431 285,755
2009
Quarter 1 11,723 74,162 345,901 293,490
Quarter 2 11,373 69,227 327,050 266,855
Quarter 3 10,668 67,142 307,284 265,595
Quarter 4 11,140 59,769 291,716 258,769
2010
Quarter 1 10,738 58,198 279,090 229,163
Quarter 2 11,439 58,437 274,642 217,285
Quarter 3 10,326 57,886 271,870 212,832
Quarter 4 12,042 57,887 273,435 221,851
2011
Quarter 1 11,265 60,717 277,710 218,950
Quarter 2 11,321 61,812 275,138 221,623
Quarter 3 12,206 64,770 287,088 223,281
Quarter 4 9,351 57,277 281,708 224,711
2012
Quarter 1 10,749 64,380 309,330 233,913
Quarter 2 8,476 63,334 315,353 237,692
Quarter 3 6,918 64,623 319,360 253,424
Quarter 4 6,918 62,335 315,353 275,008
2013
Quarter 1 10,140 66,177 327,820 276,079
Quarter 2 11,679 70,703 352,284 282,253
Quarter 3 11,055 69,610 351,314 294,739
Quarter 4 9,811 68,156 348,728 304,035
2014
Quarter 1 11,740 75,226 367,894 313,859
Quarter 2 9,843 75,689 380,814 307,955
Quarter 3 12,250 81,558 398,993 317,233
Quarter 4 12,599 78,414 399,923 332,151
2015
Quarter 1 10,707 83,469 417,568 334,279
Quarter 2 9,871 85,171 438,696 341,861
Quarter 3 9,588 80,676 440,690 356,450
Quarter 4 9,300 82,724 456,382 392,447
2016
Quarter 1 10,852 79,000 439,153 403,346
Quarter 2 8,724 84,249 465,742 409,740
Quarter 3 5,569 84,345 464,984 422,661
Quarter 4 6,347 77,451 465,922 429,950
2017
Quarter 1 7,000 77,236 473,443 456,380
Quarter 2 8,486 84,262 487,942 494,354
Quarter 3 8,996 92,472 503,274 488,767
Quarter 4 7,886 92,220 495,814 482,690
2018
Quarter 1 9,488 99,272 514,534 496,528
Quarter 2 8,834 103,534 540,565 528,335
Quarter 3 8,785 106,083 554,994 550,443
Quarter 4 8,790 104,024 568,683 588,741
2019
Quarter 1 12,255 112,879 585,304 594,449
Quarter 2 14,566 110,810 611,086 618,149

Future directions

There are other future developments planned for the FWA, including further incorporation of instruments into a from-whom-to-whom framework. Additionally, further alignment of the current FWA sector and category classification with international standards is under review. Lastly, the portion of the NBSA covering lending to both households and non-financial corporations will be expanded and estimated on a monthly basis as the Monthly Credit Aggregates program.


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