1 C E N T R A L B A N K O F C H I L E NOVEMBER 2009

Project“Quarterly Accounts for Institutional Sectors”

OECD Working Party on Financial StatisticsConference Centre, La Muette

2–4 November 2009

2 C E N T R A L B A N K O F C H I L E NOVEMBER 2009

ContentsContents

Objectives

Institutional accounts framework in Chile

Project phases and current status

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I. Objectives

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To enhance the analysis of nominal statistics of To enhance the analysis of nominal statistics of income, expenditures, and financial flows.income, expenditures, and financial flows.

The emphasis for the national accounts in Chile has been placed on measuring the technical-economic relations of production (real economy).

The project aims at providing statistics that broaden the vision to include the study of economic agents’ financial and economic behavior (nominal economy).

To increase the frequency of indicators available for decision-making (currently based on annual data).

To supply financial data for the analysis of economic policy and financial stability.

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The development phase of the project incorporated the close study of developed countries’ experiences in statistical areas, including the quarterly accounts of the euro area and the flow-of-funds accounts of the U.S. Federal Reserve.

The importance of pursuing this objective has been highlighted by the international financial crisis.

To meet international standards in the area of To meet international standards in the area of quarterly institutional statistics.quarterly institutional statistics.

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II. Institutional accounts framework in Chile

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The Central Bank of Chile currently publishes The Central Bank of Chile currently publishes annual institutional accounts with a lag of 15 annual institutional accounts with a lag of 15 months.months.

The Central Bank’s Department of National Accounts (DNA) has been in charge of preparing the institutional accounts (financial and nonfinancial) since 1990.

The statistics are annual and are published with a lag of 15 months relative to the reference period.

The current frequency and lag reduce the usefulness of the statistics for timely analysis.

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An initiative to develop quarterly estimates of these accounts has been under way in Chile since 2008.

In comparison with the 15 months annual accounting lag, international evidence suggests quarterly accounts have a lag of around 90 days.

This will allow the Central Bank to make more rapid and better informed decisions.

International evidence points to quarterly International evidence points to quarterly institutional accounts with a lag of around 90 institutional accounts with a lag of around 90 days.days.

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Correspondence of Institutional Accounts, Balance Correspondence of Institutional Accounts, Balance of Payments and the IIP within the Central Bank of of Payments and the IIP within the Central Bank of ChileChile

In the Central Bank of Chile, the financial and non financial accounts are integrated in the National Accounts Department.

The National Accounts Department is under the same Management as the Balance of Payments Department.

This proximity has certain advantages: Integration of information statistics systems Timely solution of possible differences Coherence between some relevant results

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III. Project phases and current status

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The QAIS project was designed in three phases. The QAIS project was designed in three phases. An internal trial run is planned for next year, prior An internal trial run is planned for next year, prior to the publication of the results.to the publication of the results.

•Annual methodology to the short-term series adapted•Financial accounts seminar and expert consultant services (November 2009)

Methodological documentation

2008 2009 2010 2011

QAIS

Individual sector accounts

Preparatory phase Qtrly. financial accts. phase (QFA) Qtrly. nonfinancial accts. phase (QNFA)

Publication in March 2011

Reconciled nonfinancial accounts

Reconstruction of historical series; methodological study; new data

sources

Individual sector accounts

Reconciled financial accounts

Basic information collected and standardized•Monthly/quarterly financial statements of the institutional sectors•Securities and stock markets

•Nonfinancial area will be addressed•Internal QFA trial, 2003Q1-2009Q4

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When fully operational, publication will be quarterly, with a lag of around 90 days.

The analytical breakdown will incorporate: financial balances and opening/closing link disaggregation by instrument and sector integrated economic table by institutional

sectors (nonfinancial accounts)

Based on international experience (ECB, Fed, Banco de España).

The full set of quarterly accounts for institutional The full set of quarterly accounts for institutional sectors is expected to be published in March sectors is expected to be published in March 2011.2011.

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Project“Quarterly Accounts for Institutional Sectors”

OECD Working Party on Financial StatisticsConference Centre, La Muette

2–4 November 2009