intermediation services indirectly measured isincluded
as a memorandum item to EBOPS; another
memorandum item, financial services including FISIM,identifies the total of financial services directly
and indirectly measured.
3.111. Included in financial services (excluding FISIM)
are, for example:
(a) Explicit and implicit commissions and fees
associated with financial transactions, such as:
(i)
Deposit taking and lending, including
mortgage and non-mortgage loan services
for business and personal purposes;
(ii) Letters of credit, bankers’ acceptances,
lines of credit and other similar instruments;
(iii) Financial
leasing;
(iv) Factoring;
(v) Financial derivative transactions;
(vi) Underwriting, placement of issues,
brokerage and redemption of securities,
including commissions related to the income
payments related to securities;
(vii) Clearing of payments;
(b) Financial advisory services;
(c) Custody services for financial assets or bullion;
(d) Financial asset management services;
(e) Merger and acquisition services;
(f) Corporate finance and venture capital services;
(g) Credit card and other credit granting services;
(h) The spread on foreign exchange transactions;
(i) Administration of financial markets;
(j) Credit rating;
(k) Service charges on purchases of IMF resources;
(l) Charges associated with undrawn balances
under standby or extended arrangements with the IMF.
3.112. Excluded from financial services are, for
example:
(a) Interest earned on deposits, loans, financial
leases and debt securities (this is investment income, not
included in services);
53
(b) Dividends earned;
(c) Life insurance and pension intermediation
services (included in life insurance and pension funding);
(d) Other insurance services;
(e) Non-financial advisory services provided by
banks (such as management advisory services, which are
included in business and management consultancy and public relations services);
(f) Gains and losses made on purchase and sales of
securities and financial derivatives on own account;
(g) FISIM.
3.113. In addition to explicit fees that may be charged
for the conversion of foreign exchange, implicit service
fees for foreign exchange transactions are valued as the
spread between the mid-point rate and the buying or
selling rate. Not all fees are invoiced separately; they
may be included indistinguishably with the financial
transactions to which they relate. An example is the
invoiced price of a security that includes a charge for the
brokerage service provided, as well as charges for the
international transfer of foreign currency. Although such
services are difficult to record, if possible estimates
should be included in financial services. Note that fees
paid by non-bank agents may be directly paid on
accounts held abroad, or they may be included
indistinguishably with related financial transactions.
3.114. Transactions in financial derivatives may take
place through an intermediary. In this case, implicit or
explicit service charges may be involved. The present
Manual recommends that, where charges are explicitly
made, they should be included in financial services, and
where such services are not explicitly charged, FISIM
should be estimated for inclusion in the memorandum
item financial intermediation services indirectly measured, in line with the revised treatment of financial
derivatives in balance of payments and national accounts
statistics.
54
53
But see the discussion on FISIM in box 5.
54
See International Monetary Fund, Financial Derivatives: A Supplement to the Fifth Edition (1993) of the Balance of Payments Manual (Washington, D.C., 2000).