Reporting guidelines for outstanding credit 2016

1(9) Reporting guidelines for outstanding credit 2016

2(9) CONTENTS 1 REPORTING GUIDELINES... 3 Data delivery... 3 Changes in activity... 3 Filling in questionnaire data... 3 Variable-specific guidelines... 4 Contact information and inquiries... 4 1.1 TABLE 1: DISTRIBUTION OF CREDITS BY BORROWER SECTOR... 5 2 CLASSIFICATIONS... 6 2.1 CLASSIFICATION OF SECTORS... 7 Classification of Sectors applied to the statistics on outstanding credit... 7 2.2 CLASSIFICATION OF FINANCIAL ASSETS AND LIABILITIES... 8 APPENDIX 1. INSTRUCTIONS FOR AND ENCRYPTION OF EXCEL WORKBOOKS FOR OUT- STANDING CREDIT

3(9) 1 REPORTING GUIDELINES The aim of Statistics Finland's inquiry on outstanding credit is to establish the credits granted by data suppliers to Finland and abroad in euros and other currencies according to borrower sector. Data are inquired in the data collection on new loans withdrawn during the quarter and their outstanding capital at the end of the quarter. The response burden has been reduced so that the 20 to 30 biggest lenders among the lender sector belonging to other financial corporations S125-S127 deliver workbook 2016L1 (LK11) Table 1 to Statistics Finland. Tables 2 and 3 do not have to be filled in. Data delivery Outstanding credit data are delivered to Statistics Finland with the Excel reporting form. The instructions for the Excel workbook can be found in Appendix 1. Machine-language reports made with the excel workbooks are delivered to Statistics Finland using an encrypted, secure data transmission facility. The data delivery is carried out at http://www.tilastokeskus.fi/keruu/luka/lomake. The user ID and password required for the service are sent upon request in two separate emails. You should store the user ID and password as soon as you receive them because the email is only available for 30 days after it has been sent. Changes in activity Merger If your enterprise is involved in a merger you should notify Statistics Finland immediately. The stock data of a merging financial institution are not reported as new credits in the report. After the merger, Statistics Finland adds up the outstanding credit stocks of the merged financial institutions. Filling in questionnaire data The Business ID is used for identifying enterprises. In addition to contact information, the enterprise's Business ID (in the form 1234567-8) and the reporting time (in the form yyyymmdd) are recorded on the workbook tab "General information". The reporting accuracy of outstanding credit is EUR one thousand (1,000). NB: Shares, fund shares, deposit certificates and derivatives are not included in the reporting, Money market funds outside the balance sheet are not included in the reporting either. To make responding easier, Statistics Finland has set up a classification service for data collections from enterprises, where data suppliers can check the basic classifications of enterprises and corporations. The classification service is available at: http://www.stat.fi/tup/yrluok/index_en.html.

4(9) Variable-specific guidelines Change of classification or correcting of classification errors Changes to classifications or corrections of classification errors are not to be corrected as new credit in the report. These corrections are only taken into consideration in the stock data. This should be reported when returning the outstanding credit data. New credits The concept includes withdrawals of new credits and renewal of credits with essentially altered conditions. Changes in interest rate tying do not constitute such change if other conditions, such as the loan period, remain unchanged. Only the proportion exceeding the amount of the old loan is reported of loan renewals in which the total amount of credit exceeds the amount of the credit that is being renewed. Purchases of the lending stock are not included in new credits. Credit losses Allocated credit loss reserves are removed from the outstanding credit only when they are directed to the customer and the credit loss is recorded. Accounts receivable Credits included in the outstanding credit for which usually a promissory note is a proof. Accounts receivable from an employer enterprise or a real estate company belonging to the group are not included in the outstanding credit. If a promissory note is made for the accounts receivable, this is included in the outstanding credit. (See section 2.2 Account overdrafts). Contact information and inquiries Kerttu Helin, tel. +358 29 551 3330 Sari Kuisma, tel. +358 29 551 2645 Email: luottokanta.rahoitus@stat.fi

5(9) 1.1 TABLE 1: DISTRIBUTION OF CREDITS BY BORROWER SECTOR New credits and the stock of outstanding credits by financial asset category and borrower sector are reported in Table 1. The classifications included in the table are described in more detail in Section 2. Rows Borrower sectors: The Excel form contains ready-made formulas that automatically calculate the sums of sub-sectors for the main sectors. EURO-DENOMINATED ITEMS BY FINANCIAL ASSET CATEGORY Column 01 Account overdrafts, stock The unpaid capital of revolving loans and actual account overdrafts/overdraft facilities at the end of the quarter. Column 02 Credit card credits, stock The unpaid capital of actual credit card credits (extended credit card credits) and convenience credits at the end of the quarter. Column 03 Other loans, new New credits raised during the quarter from other loans than account overdrafts and credit card credits. Column 04 Other loans, stock The unpaid capital of other loans than account overdrafts and credit card credits at the end of the quarter. Column 05 Total lending, stock Euro-denominated stock of lending = stock of account overdrafts + stock of credit card credits + stock of other loans at the end of the quarter. The Excel workbook calculates this sum automatically. ITEMS IN FOREIGN CURRENCIES BY FINANCIAL ASSET CATEGORY Column 08 Lending, new New, other than euro-denominated loans raised during the quarter. New, other than eurodenominated credits are converted into euros using the mean rate of the day when the loan was raised. Column 09 Lending, stock The outstanding capital of all credits not denominated in euro converted into euros using the mean rate of the end of the quarter.

6(9) 2 CLASSIFICATIONS The following classifications confirmed by Statistics Finland are applied to the statistics on outstanding credit: CLASSIFICATION OF SECTORS CLASSIFICATION OF FINANCIAL ASSETS AND LIABILITIES The Classification of Sectors is directed at the borrower in the statistics on outstanding credit. The Classification of Sectors classifies the activities, financing modes, owner types and legal forms of economic decisionmaking units into broader equivalent categories. The sector data of outstanding credit are reported based on the Classification of Sectors 2012. The Classification of Financial Assets and Liabilities is directed at individual credits. The Classification of Financial Assets and Liabilities describes the form of the financial asset or liability.

7(9) 2.1 CLASSIFICATION OF SECTORS The Classification of Sectors 2012 is based on the revised European System of Accounts of the European Union (ESA 2010: The Commission proposal for a Regulation of the European Parliament and of the Council on the European system of national and regional accounts in the European Union on 20 December 2010), which is uniform with the global reform of the System of National Accounts (SNA 2008: United Nations, European Commission, OECD, IMF, World Bank: System of National Accounts 2008). The Classification of Sectors 2012 has entered into force for the statistics on outstanding credit from 1 January 2014. The Classification of Sectors is here presented only at the accuracy at which it is applied to outstanding credit. Classification of Sectors applied to the statistics on outstanding credit S.11101 Public non-financial corporations, excl. housing corporations S.11102-S.11103 National private and foreign controlled non-financial corporations, excl. housing corporations S.111 Non-financial corporations, excl. housing corporations, total S.1121 Housing corporations S.1122 Other housing corporations S.112 Housing corporations, total S.11 (S111 and S112) Enterprises, total S.121 Central bank S.1221 Deposit banks S.1222 Other credit institutions S.1223 Other monetary financial institutions, excl. credit institutions S.123 Money market funds (MMF) S.124-S.127 Other financial corporations S.128 Insurance corporations S.129 Pension funds S.128-S.129 Insurance corporations and pension funds S.12 Financial and insurance corporations, total S.1311 Central government S.1313 Local government S.13141 Employment pension schemes S.13149 Other social security funds S.13 General government, total S.141 Employers and own-account workers S.143 Employees S.144 Recipients of property and transfer income S.14 Households, total S.15 Non-profit institutions serving households, total S.21 Member States and Institutions and Bodies of the European Union S.22 Non-member countries and international organisations non-resident of the EU S2 Rest of the world, total S11-S2 TOTAL Detailed category descriptions are available at: https://www.tilastokeskus.fi/meta/luokitukset/sektoriluokitus/001-2013/index_en.html. NB! To make responding easier, Statistics Finland has set up a classification service for data collections from enterprises, where data suppliers can check the basic classifications of enterprises and corporations. The classification service is available at: http://www.stat.fi/tup/yrluok/index_en.html.

8(9) 2.2 CLASSIFICATION OF FINANCIAL ASSETS AND LIABILITIES A financial asset or liability is classified as a document, security or similar proving the existence of a claimdebtor relationship. The enclosed Classification of Financial Assets and Liabilities is here presented only at the accuracy at which it is applied to outstanding credit. The Classification of Financial Assets and Liabilities does not contain separate categories of assets and liabilities in euro and in foreign currency. However, for the statistics on outstanding credit the assets and liabilities are asked to be reported broken down into euro-denominated and foreign currency-denominated items. ACCOUNT OVERDRAFTS (SEE ITEM 1 Reporting guidelines/accounts RECEIVABLE) The category includes both standby credit limits and actual (account) overdrafts. A standby credit limit is an agreement between the lender and borrower, whereby the borrower may take out loans up to an agreed limit over a time period agreed in advance and repay the loans at a desired point of time prior to a specified date. Standby credit limits meet all the following four criteria: 1. The borrower may use or withdraw assets up to a limit agreed in advance without notifying the lender about it. 2. The amount of the available credit may increase or decrease according to the borrowing and repayment of the assets. 3. The credit can be reused several times. 4. There is no obligation concerning regular repayments for the assets. The amount which the borrower has received but not yet repaid is reported under this item. The total amount of the credit is reported irrespective of whether it is under or over the amount and/or the maximum duration of the credit agreed in advance by the lender and borrower. Claims in respect to hire purchase contracts, factoring and confirming credits of accounts receivable are also classified as standby credit limits when the four conditions of standby liquidity credit limits are met in full or almost in full. If the data supplier's agreement with the customer is of promissory note format, it is reported under the claim "Other credits". Overdrafts (on current accounts) include the balances of all accounts with overdraft facility at the end of a quarter. The total amount of the credit is reported irrespective of whether it is under or over the credit limit and/or the maximum duration agreed in advance by the lender and borrower if the overdraft has not been recorded in other receivables in the data provider s information systems. CREDIT CARD CREDITS The category includes both actual credit cards (extended credit card credits) and charge card credits. Extended credit card credit is defined as the credit granted after the due dates of the previous billing cycle or cycles have passed, i.e. debit amounts on the card account have not been settled when this was first possible. Interest rate exceeding 0 per cent is usually charged on the extended credit. The rate of interest may also be tiered. Payment period credit card credit is specified as a loan that is granted at zero interest rate for the period between the payment transaction(s) made with the card during one invoicing period and the due date of the balance of debts for the same invoicing period. Convenience credit can be granted either via a card with a delayed charge facility (debit card) or via a credit card (i.e. cards providing convenience credit and interest bearing credit, or extended credit card credit).

9(9) OTHER CREDITS Bills of exchange, direct promissory note loans, loans granted from central government funds, factoring and confirming credits of accounts receivable, hire purchase contracts, financial leasing, rental financing credit, repos and other promissory note loans (incl. state subsidised home purchase savings scheme credits), voluntary reborrowing of pension contributions, and other loan advances not belonging to any other claim category. The item includes housing loans, loans to own-account workers and student loans. Hire purchase receivables, and factoring and confirming credits are classified as account overdrafts when the four conditions on standby credit limit are fully or almost fully met (see Overdrafts on current account). However, if the data supplier's agreement with the customer is of promissory note format, it is included in other credits.