Manual on Statistics of International Trade in Services

Box 5.   Financial intermediation services indirectly measured (FISIM)
 
What is FISIM?
 
Some financial intermediaries are able to provide services for which they do not charge explicitly. FISIM is the 
measure of the value of these services. Financial intermediaries do this by paying to lenders (those from whom they 
borrow funds in the form of deposits and/or loans) rates of interest lower than the rates that they charge to those to 
whom they lend through loans (and to different categories of these lenders and borrowers). The resulting net receipts 
of interest are used by the financial intermediaries to defray their expenses and to provide an operating surplus. This 
method of operation avoids the need to charge customers directly for services provided and leads to the pattern of 
interest rates that can be observed in practice in most economies (that is, interest rates paid to depositors/lenders are 
lower than the interest rates charged to borrowers). In addition, financial intermediaries offer differential interest 
rates to depositors based on a range of factors, such as the size of the deposit, accessibility to funds and 
arrangements for cheque-writing facilities. Differential interest rates are charged to borrowers based on perceptions 
of the credit risk of the borrower, as well as on the collateral provided to the intermediary. 
Although BPM5 does not recommend the inclusion of FISIM in financial services, the 1993 SNA does make such 
a recommendation.
a
  
Over time, as financial institutions charge explicitly for a wider range of services, growth in the money value of 
financial services excluding FISIM will be larger than if the institutions continue with the same charging policies––
that is, financial services explicitly charged will show some growth that is due to a switch in charging policy, not 
necessarily an increase in the services provided. To ensure that a more complete and consistent picture is given of 
the total trade in financial services, the present Manual recommends that FISIM should be shown as a memorandum 
item, and that financial services including FISIM should also be included as a memorandum item. In addition, 
financial derivatives transactions may take place through an intermediary. In this case and where explicit service 
fees are not charged, a service may be provided, in which case it should be indirectly measured.
b