classIFICATION OF FINANCIAL TRANSACTIONS
5.19 . The financial transactions are classified in categories subdivided into sub-categories and some of which are further subdivided into sub-positions. The classification of the transactions in financial assets and liabilities corresponds to the classification of financial assets and liabilities (see paragraphs 5.06. - 5.08.). Therefore, the definitions of the categories, sub-categories and sub-positions and the supplementary explanations are provided only once in the ESA - in this section of the financial transactions chapter. The balance sheets chapter does not repeat the definitions and their explanations in its main text but it provides in its Annex 7.1 a summary of all assets and liabilities defined in the system.
5.20 . The classification of financial transactions and of financial assets and liabilities is based primarily on the liquidity and the legal characteristics of the financial assets. The classification does not contain functional categories with the exception of a memorandum item related to direct foreign investment. The definitions of the categories, sub-categories and sub-positions are in general independent of the classification of institutional units. As the need arises, however, the classification of financial assets and liabilities can be further detailed by a cross classification with the classification of institutional units. The class deposits between monetary financial institutions would be an example. The detail in which the classification of financial assets and liabilities may be employed depends on the institutional sector to be analysed.
| Table 5.1
Classification of financial transactions |
| Classification
of financial transactions |
Code
|
|
|
|
|
| Monetary
gold |
F.11 |
|||
| Special
drawing rights (SD_Rs) |
F.12 |
|||
Currency and deposits |
F.2 |
|||
| Currency
|
F.21 |
|||
| Transferable
deposits |
F.22 |
|||
| Other
deposits |
F.29 |
|||
Securities other than shares |
F.3 |
|||
| Securities
other than shares, excluding financial derivatives |
F.33 |
|||
| Short-term
|
F.331 |
|||
| Long-term
|
F.332 |
|||
| Financial
derivatives |
F.34 |
|||
Loans |
F.4 |
|||
| Short-term
|
F.41 |
|||
| Long-term
|
F.42 |
|||
Shares and other equity |
F.5 |
|||
| Shares
and other equity, excluding mutual funds shares |
F.51 |
|||
| Quoted
shares |
F.511 |
|||
| Unquoted
shares |
F.512 |
|||
| Other
equity |
F.513 |
|||
| Mutual
funds shares |
F.52 |
|||
Insurance technical reserves |
F.6 |
|||
| Net
equity of households in life insurance reserves and in
pension funds reserves |
F.61 |
|||
| Net
equity of households in life insurance reserves |
F.611 |
|||
| Net
equity of households in pension funds reserves |
F.612 |
|||
| Prepayments
of insurance premiums and reserves for outstanding claims
|
F.62 |
|||
Other accounts receivable/payable |
F.7 |
|||
| Trade
credits and advances |
F.71 |
|||
| Other
|
F.79 |
Memorandum item: Direct
foreign investment |
|
F.m |
5.21 . Analyses of the monetary policy transmission channels may require to identify measures of money in the balance sheets and also in the financial accounts of the sectors and the rest of the world. However, the definitions of the measures of money applied vary among countries and in time. In addition, they are composed of components which in most of the cases do not correspond with the categories, sub-categories or sub-positions of financial assets and liabilities as defined in the system. Moreover, the money-creating, money-holding and money-neutral sectors depend on the definition of the monetary aggregate under consideration. Therefore, measures of money are not defined in the system. Nevertheless, a method is provided in the Annex 5.1 to this chapter which allows to show any measure of money in the balance sheets and the financial accounts.
5.22 . Innovations in financial markets have diminished the usefulness of a short-term/long-term distinction for financial assets and liabilities. However, when maturity analysis is important, such as for analysis of interest rates and asset yields, a breakdown of a range of maturities may be required. Therefore, maturity distinction is recognised as a secondary classification criterion when relevant.
Definition:
Short-term
financial assets (liabilities) are financial assets (liabilities)
whose original maturity is normally one year or less, and in
exceptional cases two years at the maximum 
.
Long-term financial assets (liabilities) are financial assets (liabilities) whose original maturity is normally more than one year, and in exceptional cases more than two years at the minimum.
5.23 . Many of the categories, sub-categories and sub-positions of the financial assets and liabilities may be broken down by the units in which they are denominated.
Definition:
Financial assets (liabilities) in national currency are financial assets (liabilities) which are denominated in the currency unit(s) of the country's legal tender.
Financial assets (liabilities) in foreign currency are financial assets (liabilities) which are not denominated in the currency unit(s) of the country's legal tender.
Financial assets in foreign currency include financial assets denominated in a currency basket, for example ECU or SDR, and financial assets denominated in gold. A distinction between national and foreign currency is particularly useful for the category currency and deposits (AF.2).