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1993 SNA Update Information - AEG recommendations for issue:
Allocation of the output of central banks

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The 1993 SNA recommends that the services of central banks be measured on the basis of receipts from fees, commissions, and financial intermediation services indirectly measured (FISIM). This method sometimes results in unusually large positive or negative estimates of output. In 1995, the ISWGNA therefore decided to allow countries to measure the output of central banks, as a second best, at cost. However, the ISWGNA did not provide further guidance on the implications of this method. The review seeks to clarify the impact of the different roles that central banks perform on the nature of their output and the appropriate valuation and allocation to associate with the output of central banks.
AEG recommendations
Number of AEG recommendations for selected issue:2
  Corresponding meetingDate postedRecommendation
 Jan-Feb 200607/04/2006Output of Central Banks
(a) The AEG agreed in principle with the proposal to distinguish between market and non-market output. Non-market output should be valued at cost. The group noted that exact implementation might be very resource intensive and that the issue may not be of significant importance. It was therefore agreed that countries should have flexibility in the degree to which they applied the distinction.
Use of Central Bank services
(b-c) It was agreed that the non-market services of central banks should be treated as acquisition of services by general government financed by an imputed transaction. Market services of the central bank are provided to a range of institutional units who pay for them.
Valuation of Market Services
(d) It was noted that the interest rates set by the central bank may be so high or low as to represent inclusion of an implicit tax or subsidy. The AEG agreed these should be identified explicitly as such when they are significant. Then, they should be recorded as taxes or subsidies.
 February 200427/04/2004MEASUREMENT OF THE OUTPUT OF CENTRAL BANKS The AEG reviewed the recommendation made by the ISWGNA in 1995 on the measurement of the output of central banks. The Group agreed that, because of the unique functions that may be performed by central banks, the value of their output obtained by the method recommended by the 1993 SNA (the difference between property income receivable less interest payable) may sometimes be exceptionally large or small or even negative. In such cases the output of central banks or at least part of it could be measured at cost. Further work is needed to clarify these cases. This does not imply reclassifying the central bank to the government sector. Clarification is needed of which sectors consume the output of the central bank.
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