Classification in the non-financial sector of issuing subsidiaries of non-financial corporations

Chapter 21. Primary market for securities

A common practice of large non-financial corporate groups when raising funds on the capital markets is to establish subsidiaries specialised in issuing debt securities. The funds raised in these issues are routed to the parent company as loans.

 To date, these subsidiaries were considered to be financial in nature, given their intermediation role in raising funding for their parents, and they were classified in the financial sector. However, following the institutional classification applied in the European System of Central Banks’ (ESCB) securities issues statistics, it is now considered these issuing subsidiaries should be under the non-financial sector, along with the units that control them.  

Accordingly, this update includes those issuers that are subsidiaries of non-financial corporations in the non-financial sector, having previously classified them in the financial sector. That entails a change in the statistics relating to securities issues by both financial institutions and by non-financial corporations. The tables in chapter 21 affected by this change are the following: 21.1 (columns 2, 4 and 9), 21.2 (2, 4 and 9), 21.3 (4, 5, 6, 10, 11 and 12), 21.4 (4, 5, 6, 10, 11 and 12), 21.5 (5, 6, 7 and 8), 21.6 (9, 10, 11 and 13), 21.7 (9, 10, 11 and 13), 21.20 (all columns), 21.22 (2, 4 and 8) and 21.23 (2, 4 and 8).

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