All other countries;Canada; Payments; Other investment income (v61914577); from Cube 36100014: Balance of international payments, current account and capital account

Series Attributes:

Unit and Multiplier:

Dollars, Millions

Frequency:

Annual

Valuation Type:

Market prices (value at)
“Market prices” refer to amounts of money that buyers are willing to pay to acquire goods, services or assets from willing sellers. The exchanges are made between independent parties and on the basis of commercial considerations only, sometimes called “at arm’s length”. It includes all taxes, retail, wholesale, transportation and other margins less any subsidies on production or products.

Seasonal Adjustment:

Not seasonally adjusted
A time series is said to be “not seasonally adjusted” when no adjustments have been made to it to remove predictable seasonal regularities due to normal variations in climate through the year, the schedule of religious, civic and other holidays, established social patterns such as the timing of the school year and other factors of this nature. Time series that have not been seasonally adjusted are also not adjusted for calendar effects, as for example when one month has more working days (Mondays to Fridays) than another. Time series that are not seasonally adjusted are typically more volatile than time series that are seasonally adjusted.

Principal Data Sources:

Canada's Balance of International Payments, Statistics Canada

Methods:

Other investment income:

Data on investment income related to the other investment category (official reserves - receipts only, loans, currency and deposits, trade credit and advances, other accounts receivable/payable) are mostly compiled from survey results, administrative data sources or derived from relevant interest rates applied to outstanding positions. Activities of banks account for the vast majority of the other investment income category.

On the receipts side, interest receipts on loans and currency and deposits held abroad by Canadian banks, including deposits between affiliates and branches, are obtained directly from the Quarterly Bank Earnings (QBE) report. This information is available by geographical region.

Other interest receipts on currency and deposits held abroad by Canadian residents other than banks are derived by applying relevant interest rates to positions obtained from the U.S. Treasury, the Bank of England and the Bank of International Settlements (BIS).

Earnings on international reserves are compiled from official records obtained from the Bank of Canada.

Similarly, interest receipts on loans related to government-financed export credits are based on administrative records. Interest receipts on cross-border repurchase agreements activity are derived from a detailed inventory of securities and represent the difference between the selling and purchasing prices of securities used as collateral to the loan for a given period.

Receipts on all other types of international assets (trade credit and advances as well as other accounts receivable) are collected from annual and quarterly surveys. Results from annual surveys, which are more complete, replace those compiled from quarterly surveys when revisions to the accounts are performed. When information from surveys are not available, income data are imputed by multiplying relevant interest rates to outstanding positions.

On the payment side, interest paid on currency and deposits held by non-residents at Canadian banks, including deposits between affiliates and branches, by non-residents are obtained directly from the QBE report. This information is available by regional allocation of foreign holders.

For the Canadian non-bank sector, interest paid on loans is calculated from a detailed inventory of loans where information on coupon rate, coupon frequency, currency, par value and maturity is available on an instrument by instrument basis. Income on these instruments is recorded on an accrual basis and represents essentially income paid on coupon. When detailed information by instrument is not available, interest payments are derived using relevant interest rates applied to outstanding positions. Interest payments on cross-border repurchase agreements activity are derived from a detailed inventory of securities and represent the difference between the purchasing and selling prices of securities used as collateral to the loan for a given period.

Payments on all other types of international liabilities (trade credit and advances as well as other accounts payable) are collected from annual and quarterly surveys. Results from annual surveys, which are more complete, replace those compiled from quarterly surveys when revisions to the accounts are performed. When information from surveys are not available, income data are imputed by multiplying relevant interest rates to outstanding positions.

Data on investment income are collected net of withholding taxes but published inclusive of withholding taxes, which is the portion of the investment income retained by central governments. The articulation of investment income and associated withholding taxes is as follows: investment income is recorded inclusive of withholding taxes and then the withholding taxes flow back to the country where the income was generated (Canada or abroad) under a current transfer entry in the secondary income account.

Data on investment income are also presented net of financial intermediation services charges indirectly measured (FISIM). FISIM refers to the financial service implicitly included in interest receipts and payments on cross-border loans and currency and deposits between financial institutions. FISIM are estimated by comparing the effective interest rate on debt instruments to a reference rate which excludes indirect charges. FISIM are excluded from the investment income data and recorded as a financial service in the services category of the current account.

Additional Information:

Other data sources for this account include the following:

Quarterly bank earnings report (QBE) is the main data sources for interest receipts on bank loans and deposits. Interest receipts and payments by the non-bank sector is derived using annual and quarterly surveys. The US Treasury, the Bank of England and the Bank of International Settlements (BIS), Canadian official and other administrative records are also used.