Calculation method

3.16.2.1. Central banking (NACE 65.11)

284. NACE 65.11 contains only the National Bank of Hungary. The data source is NBH aggregate profit and loss account its statement of operating expenditure.

Output

285. Other non-market output of the National Bank of Hungary is recorded as a sum of costs.

The calculation method is the following:

Other non-market output is the sum of P.2 Intermediate consumption, K.1 Consumption of fixed capital, D.1 Compensation of employees.

Output P.1 = P.2+K.1+D.1

Table 3.39 Other non-market output of Central Bank, 2002 (million HUF)

P.2 Intermediate

Intermediate consumption

286. Intermediate consumption covers material costs, cost of contracted services, cost of other services, expenses related to money circulation, wages and salaries in kind and commission expenses.

Intermediate consumption P.2 = P.21+P.22+P.23+P.24-P.26+P.28

Table 3.40 Intermediate consumption of Central Bank, 2002 (million HUF)

P.21 Material costs

3.16.2.2. Other monetary intermediation (NACE 65.12)

287. The production account is based on data collected by the Hungarian Financial Supervisory Authority.

Output

288. In 2002 the value of output was the following:

Table 3.41 Output of other monetary intermediation, (million HUF)

P.11 Financial activity P.119+P.112 562 357

P.119 FISIM output own estimation 373 841

P.112

Commission revenue and profit/loss of other financial transactions

Profit and loss account of credit

institutions 188 516

P.12 Profit/loss of other business activities

Profit and loss account of credit

institutions -1 005

P.13 Items adjusting sales to

valuation at basic-price Corporate profit tax return -8 176 P.14 Capitalised own performance Corporate profit tax return 351 P.15 Imputed value of welfare

services Corporate profit tax return 484

P.16 Imputed value of own-produced

services provided to employees Corporate profit tax return 3 169

P.1 Output P.11+P.12+P.13+P.14+P.15+P.16 557 180

289. Within the financial activities (P.11) FISIM (P.119) is an important item.

FISIM is the financial intermediation services indirectly measured. It measures the service output of financial intermediation without an explicit fee, included in the amount of interest.

Total FISIM output of NACE 65 industry was split in 4 digit level FISIM producing classes as other monetary intermediation (S.122), financial leasing and other credit granting (S.123) based on the ratio of their loans and deposits.

FISIM methodology and its impact on the level of GDP and GNI is described in Chapter 9.

Holding gains and losses are not taken into account in the gross output of other monetary intermediation.

290. The P.112 contains the total of commission revenues from services and profit/loss of other financial transactions. Foreign exchange and security dealers' margins realized by other monetary financial intermediation are accounted as part of their output. P.112 contains payment and transaction commissions, guarantees, other fees and commissions.

291. The P.12 Other business activities contains P.121 Profit/loss of other business, non-financial activities including the profit and loss of non-financial and investment services and other revenues.

P.13 Items adjusting sales to valuation at basic price:

Product taxes

292. P.1363 Cultural contribution, the amount of which is taken from the “Declaration of the liabilities against the budget” tax return forms.

293. P.1365 The local business tax is a product tax payable also by financial enterprises with the exception of pension funds and insurance associations. The report on the execution of the budget contains the total amount of local business tax, of which we estimate an amount for the financial corporations sector. The local business tax calculated for the financial sector is distributed in

294. In terms of P.14 Capitalised own performance the data reported on the corporate profit tax returns are used. Own-account GFCF includes the total (consolidated) amount of the capitalized value of own-account assets (recorded within assets) in the financial year. Similarly to non-financial enterprises, welfare services (P.15) and own produced services provided to employees (P.16) are also imputed in the case of other monetary intermediation.

Intermediate consumption

295. In 2002 the intermediate consumption of other monetary intermediaries is illustrated in the following table.

Table 3.42 Intermediate consumption of other monetary intermediation, (million HUF)

P.21 Material costs Corporate profit tax return 14 612

P.22 Costs of contracted

services Corporate profit tax return 145 832

P.23 Costs of other services P.231+P.232+P.233 21 292

P.231 Banking expenses Corporate profit tax return 985

P.232 Insurance services used Corporate profit tax return 689

P.233 Regulatory fees Corporate profit tax return 19 618

P.26

Expenses classified as wages and salaries in kind

Corporate profit tax return 4 381

P.27 Cost of small tools Corporate profit tax return 1 834 P.28 Commission expenses Profit and loss account of credit institutions 53 992 P.291 Part of output of Central

Bank Profit and loss account of National Bank 18 466 P.2 Intermediate

consumption P.21+P.22+P.23-P.26+P.27+P.28+P.291 251 647 296. The P.21 Material costs and P.22 Costs of contracted services derive from the corporate profit tax return. P.22 “Costs of contracted services” included original cost of material- and non-material-type services used during the financial year, including any non-deductible value added tax, used during the financial year as invoiced, paid and contracted. This is not material cost referring to this sub-sector, this item consists of IT, accounting, renting, telecommunication services provided by another corporation.

297. P.23 Costs of other services = P.231 Banking expenses + P.232 Insurance services used + P.233 Regulatory fees.

The P.231 Banking expenses are also corporate profit tax return data. They contain those banking costs, which are recorded as fees and commissions payable. The P.232 Insurance services are estimated from insurance premiums paid by financial enterprises, which are corrected according to national account concept. The premiums payable to the insurance companies by the insured parties must be divided into two parts: an amount covering the risks and the service fee. This latter amount has to be recorded as intermediate consumption in ESA95. P.232 = P.2321 Insurance premiums paid multiplied by a coefficient. The estimation of the coefficient is based on insurance corporations claims / gross premiums ratio. This ratio is for covering risk and 1- claims / gross premiums has to be accounted as intermediate consumption.

We do not have any direct data source for P.233 Regulatory fees. The regulatory fees can be calculated by deducting the banking expenses and insurance premium from the total of other services in the corporate profit tax returns.

298. The P.26 Expenses classified as wages and salaries in kind includes purchased goods and services provided to employees and the value of services of cars provided for personal use of employees, which are (on the basis of the income tax of 44% paid by the employer) multiplied by the coefficients calculated under Section 4.7.2. This item is recorded among the material-type costs in the profit and loss accounts of the enterprises, but in ESA95 it is a component of D.1.

299. Purchase of small tools are recorded as P.27. In business accounts cost of small tools below HUF 50 000, can be accounted in one lump sum. The Hungarian regulation defines a lower threshold which is used in the national accounts.

300. P.28 contains the commission expenses of credit institutions. These are expenses paid by these economic organisations for the financial services of other resident or non-resident economic organisations.

301. P.291 item comprises a proportional part Central Bank output, allocated to intermediate consumption of NACE 65 without NACE 6511 National Bank.

302. Intermediate consumption P.2 = P.21+P.22+P.23-P.26+P.27+P.28+P.291 3.16.2.3. Other financial intermediation (NACE Rev.1.1. 65.2)

Output

303. The output of enterprises classified under NACE 65.2 in 2002 is illustrated in the following table:

Table 3.43 Calculation of output of other financial intermediation, (million HUF)

Code Item Source

P.119 FISIM output own estimation 5 518

P.12 Other financial activity P.121-P.122 89 320

P.121 Net sales revenues Corporate profit tax return 272 915 P.122 Value of services purchased for

resale Corporate profit tax return 183 595

P.13 Items adjusting sales to valuation

at basic price P.1363+P. 1365 -1 431

P.1363 Cultural contribution Corporate profit tax return - 8 P.1365 Local business tax and tourism

tax Government statistics - 1 423

P.14 Capitalised own performance Corporate profit tax return - 1 P.15 Imputed value of welfare

services Corporate profit tax return 57

P.16 Imputed value of own produced

services provided to employees Corporate profit tax return 374

P.1 Output P.119+P.12+P.13+P.14+P.15+P.16 93 837

304. The other financial intermediaries (financial leasing enterprises, other credit granting outside the banking system, factoring companies, securities brokerage firms trading on their own accounts, etc.) are recorded on the basis of the corporate profit tax return of enterprises with double-entry and single-entry bookkeeping.

statistical requirements. Interest income and repayment of principal and FISIM are separated from the fee of leases and factoring, FISIM is deducted from the interest income of loans. In case of financial lease companies FISIM is accounted.

Accounting in 2002 is the following:

306. FISIM output is recorded as output for FISIM producers of NACE 65.2 and intermediate consumption for FISIM consumers. Total FISIM output of NACE 65 industry was split to various 4 digit level FISIM producing classes as other monetary intermediation (S.122), financial leasing and other credit granting (S.123) based on the proportion of their loans and deposits.

For the reference year 2002, there was no supervisory profit and loss statement information available for other financial intermediation classified NACE 65.2. These kind of enterprises were accounted based on corporate profit tax return items. Unit of observation is based on institutional level, not on activity level.

The second component of the output is P.12 Other financial activity. These data are available from the corporate profit tax return. The guidelines for completing corporate profit tax return contains the following definition for the net sales revenues of financial enterprises: interest and interest-type revenues less interest and interest-type expenses increased by revenues of other financial services, revenues of investment services and net sales revenues of non-financial services.

P.121 Net sales revenue at NACE 65.2 consists of fees and commissions received from fund and portfolio management.

The value of services purchased for resale is also taken from the corporate profit tax return. P.122 Value of services purchased for resale at NACE 65.21 is the acquisition cost of sold vehicles against receivables by the financial leasing company.