Flow of Funds USA, Europe, Japan

*In this paper, major sectors are compared either among Japan, the United States, and the Euro area

or between Japan and the United States.

Flow of Funds- Overview of Japan, US, and the Euro area -

Bank of Japan

December 21, 2012Research and Statistics Department

Ⅰ . Overview: Japan, US, and the Euro area　―　 Data for Japan and the US are those as of September-end 2012; those for the Euro area as of June-end 2012.

Chart 1 Financial assets and liabilities of financial intermediaries

JapanAssets ( 2,694trillion yen ) Liabilities ( 2,682trillion yen )

Depository corporations

( 1,575 trillion yen ) ( 1,598 trillion yen )

Insurance and Pension funds

( 516trillion yen ) ( 488 trillion yen )

Other financial intermediaries

( 603 trillion yen ) ( 596 trillion yen )

Percentage ratio to the total financial assets or liabilities of the financial intermediaries

United StatesAssets ( 66.1 trillion dollars ) Liabilities ( 63.7 trillion dollars )


( 18.5 trillion dollars ) ( 16.9 trillion dollars )






Euro areaAssets (58.6 trillion euro) Liabilities (57.3 trillion euro)


(35.8 trillion euro) (34.8 trillion euro)






* "Depository corporations" for Euro area includes central bank sector.

** "Others" is the residual which is the remaining after deducting "Currency and deposits","Deposits with the Fiscal Loan Fund"(Japan only),"Loans", "Bonds",

　 "Investment trusts","Shares and equities" and "Insurance and pension reserves" from total financial assets/liabilities.

*** "Currency and deposits" held by depository corporations includes "Vault cash" and "Reserves at Federal Reserve".

Currency and deposits 4%



Loans 6%

Loans 1%

Loans 23%

Bonds 5%

Bonds 5%

Bonds 12%

Investment trusts 2%



Shares and equities 9%



Others 0%

Others 3%

Currency and deposits45%

Borrowings 6%

Borrowings 1%

Bonds 5%

Bonds 9%






Insurance and pension reserves 11%

Others 2%

75 50 25 0 25 50 75




Loans 17%

Loans 1%

Loans 13%

Bonds 13%

Bonds 9%

Bonds 5%










Borrowings 3%

Borrowings 0%

Borrowings 2%

Bonds 18%

Bonds 0%

Bonds 2%








Others 4%

Others 3%

Others 5%

Others 3%

Others 4%

Others 7%

75 50 25 0 25 50 75



Loans 15%

Loans 2%

Loans 25%

Bonds 2%

Bonds 10%

Bonds 18%





Others 3%

Others 4%

Others 7%


Deposits with the Fiscal Loan Fund 2%

Borrowings 8%

Borrowings 6%

Bonds 7%

Bonds 1%






Others 1%

Others 1%

Others 4%

75 50 25 0 25 50 75

1

Chart 2 Financial assets held by households

( 1,510 trillion yen )

( 53.6 trillion dollars )

(19.0 trillion euro)

Percentage ratio to the total financial assets

* "Others" is the residual which is the remaining after deducting "Currency and deposits", "Bonds","Investment trusts",

"Shares and equities" and "Insurance and pension reserves" from total financial assets.

( 1,002 trillion yen )

　　　　　　　　　


(25.7 trillion euro)

Percentage ratio to the total financial liabilities

* "Others" is the residual which is the remaining after deducting "Loans", "Bonds", and "Shares and equities" from total financial liabilities.

** Figures for the Euro area consist of nonfinancial corporations, which include both public and private nonfinancial corporations.

Chart 3 Financial liabilities owed by private nonfinancial corporations

Currency and deposits (36.4%)

Currency anddeposits (14.3%)


Bonds (7.0%)

Bonds(8.7%)

Bonds (2.2%)

Investment trusts(7.0%)

Investment trusts

(12.3%)

Investment trusts (3.8%)

Shares and equities(14.3%)


Shares and equities (5.8%)

Insurance and pension reserves(31.8%)



Others (3.4%)

Others (3.3%)

Others (4.4%)

0 10 20 30 40 50 60 70 80 90 100

Euro area

United States

Japan

Loans(33.0%)

Loans(7.6%)

Loans(32.0%)

Bonds (3.7%)

Bonds (20.0%)

Bonds (6.8%)




Others (15.8%)

Others (18.2%)

Others (27.0%)

0 10 20 30 40 50 60 70 80 90 100

Euro area

United States

Japan

2

Chart 4 Financial surplus and deficit of major sectors (as a percentage of nominal GDP)

Japan

United States

Euro area

* Figures for 2012 are the sum of the data of the most recent four quarters: up to the 3rd quarter of 2012 for Japan and the United States, and up to the 2nd quarter

of 2012 for the Euro area.

** See notes on the last page for the definition of each sector.

*** Figures for the Japanese general government are recalculated to neutralize the following effects: the classification of the Japan Expressway Holding and Debt Repayment

Agency into the central government; transfer of reserves in the FILP Special Account to the central government; and investment in equities to the Japan Post Holdings.

-15

-10

-5

0

5

10

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(%)

Calendar year

Private nonfinancial corporations General government

Households Rest of the world

(Financial surplus)

(Financial deficit)

-15

-10

-5

0

5

10

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(%)

Calendar year

Private nonfinancial corporations General government


(Financial surplus)

(Financial deficit)

-15

-10

-5

0

5

10

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(%)

Calendar year

Nonfinancial corporations General government


(Financial surplus)

(Financial deficit)

3

　　　Ⅱ． Overview: Japan and US　　　　　　―　 Data for Japan and the US are those as of September-end 2012.

Chart 5 Financial assets held by investment trusts

(91.7 trillion yen)



* "Others" is the residual which is the remaining after deducting "Currency and deposits","Loans","Bonds","Shares and equities" and "Outward investment in securities"(Japan only)

from total financial assets.

** US Flow of Funds data include both outward and domestic investment in securities.

Chart 6 Financial assets held by pension funds

(120.1 trillion yen)



* "Others" is the residual which is the remaining after deducting "Currency and deposits","Loans","Bonds","Investment trusts","Shares and equities"

and "Outward investment in securities"(Japan only) from total financial assets.


Chart 7 Financial assets held by insurance

(395.8 trillion yen)



* "Others" is the residual which is the remaining after deducting "Currency and deposits","Loans","Bonds","Investment trusts","Shares and equities"

and "Outward investment in securities"(Japan only) from total financial assets.




Loans (0.7%)

Loans (2.4%)

Bonds (19.2%)

Bonds (31.5%)

Investment trusts

(24.5%)



Sharesand

equities(8.5%)

Outward investment in securities (0.0%)


Others (16.2%)

Others (27.6%)

0 10 20 30 40 50 60 70 80 90 100

United States

Japan



Loans(7.2%)

Loans(12.9%)

Bonds (53.4%)

Bonds (61.3%)

Investment trusts (3.2%)





Outwardinvestment

in securities(11.7%)

Others(9.4%)

Others (4.3%)

0 10 20 30 40 50 60 70 80 90 100

United States

Japan


Currency and deposits(0.3%)

Loans(6.3%)

Loans (5.5%)

Bonds (43.5%)

Bonds (19.0%)





Others (0.5%)

Others (22.5%)

0 10 20 30 40 50 60 70 80 90 100

United States

Japan

4

Data sourceBank of Japan, Flow of Funds Accounts, released on December 21, 2012

http://www.boj.or.jp/en/index.htm

http://www.federalreserve.gov/releases/z1/Current/

http://www.ecb.int/stats/acc/html/index.en.html

Sectors and instruments

SectorsDepository corporations[US] U.S.-Chartered Depository Institutions excluding Credit Unions, Foreign Banking Offices in U.S., Banks in U.S.-Affiliated Areas, Credit

Unions, Holding Companies

[EA] Monetary Financial Institutions : Includes Central Bank as well as Depository Corporations.Insurance and pension funds (Sectors marked with an asterisk indicate pension funds)[US] Life Insurance Companies, Property-Casualty Insurance Companies, Private Pension Funds*, State and Local Government Employee

Retirement Funds*, Federal Government Retirement Funds*

[EA] Insurance Corporations and Pension Funds - In Euro Area Accounts, insurance corporations and pension funds are combined into one sector.

Other financial intermediaries (Sectors with an asterisk indicate investment trusts. Sectors with double asterisks indicate nonbanks)[US] Money Market Mutual Funds*, Mutual Funds*, Closed-End and Exchange-Traded Funds*, Government-Sponsored Enterprises, Agency-and

GSE-backed Mortgage Pools**, Issuers of Asset-Backed Securities**, Finance Companies**, Real Estate Investment Trusts, SecurityBrokers and Dealers, Funding Corporations

[EA] Other Financial Intermediaries - In Euro Area Accounts, investment trusts and financial auxiliaries are included in Other Financial Intermediaries.

Private nonfinancial corporations[US] Nonfinancial Corporate Business[EA] Non-financial Corporations : Includes both private and public nonfinancial corporations.General government[US] State and Local Governments, Federal Government : Social security funds not included.[EA] General Government : Includes social security funds.Households[US] Households and Nonprofit Organizations[EA] Households, Including Non-profit Institutions Serving Households

- In Japan's FFA, "households" excludes "Private nonprofit institutions serving households."Assets/Liabilities

Currency and deposits[US] U.S. Deposits in Foreign Countries, Checkable Deposits and Currency, Time and Saving Deposits[EA] Currency and DepositsLoans[US] Net Interbank Liabilities, Federal Funds and Security Repurchase Agreements, Depository Institution Loans Not Elsewhere Classified, Other

Loans and Advances, Consumer Credit, Total Mortgages, Security Credit[EA] LoansBonds[US] Open Market Paper, Treasury Securities, Agency-and GSE-backed Securities, Municipal Securities and Loans, Corporate and Foreign

Bonds[EA] Short-term Debt Securities, Long-term Debt SecuritiesInvestment trusts[US] Money Market Mutual Fund Shares, Mutual Fund Shares[EA] Mutual Fund SharesShares and equities[US] Corporate Equities, Proprietors' Equity in Noncorporate Business, Investment by parent[EA] Quoted Shares, Unquoted Shares and Other EquityInsurance and pension reserves[US] Life Insurance and Pension Fund Reserves[EA] Insurance Technical ReservesFinancial surplus and deficit[US] Net Lending (+) or Borrowing (-) (Financial Account)[EA] Net Lending (+) / Net Borrowing (-) from Financial Accounts

Note

FRB, Flow of Funds Accounts of the United States, Third Quarter 2012, released on December 6, 2012

Notes to Charts 1 to 7

Sectors and instruments of the United States [hereafter "US"] and Euro area [hereafter "EA"] are reclassified according to Japan's Flow of FundsAccounts (see below). Note that "Bonds" is equivalent to "Securities other than shares (excluding investment trusts)."

Some items with small amount outstanding are not explicitly shown on charts.

ECB, Euro Area Accounts, released on October 30, 2012

5

Documents

Flow of Funds USA, Europe, Japan