The statistical treatment of securitisation vehicles Bank of England comments on the draft of chapter 4 of SNA Rev1

1
The statistical treatment of securitisation
vehiclesBank of England comments on the draft
of chapter 4 of SNA Rev1

• OECD Working Party on Financial Statistics, 2-3
  October 2007

2
Is it always appropriate to treat SPEs as
separate institutional units?

• Economic reality versus legal form
• SPEs often have
• - no employees / production activity
• - little or no autonomy
• - balance sheets not economically meaningful (if
  assets not derecognised)
• IMF CG (3.112) recommends consolidation of some
  SPEs

3
Bank of England interest in SPEs

• Are SPEs money-holders or money-creators?
• - Project to redefine UK broad money.
• Additional volatility in bank credit data

4
Recommendations

• Review and clarify the SNA Rev1 designation of
  SPEs as institutional units (4.48-4.54)
• Consider instead a definition of SPEs as
  artificial subsidiaries
• - not for SPEs in other jurisdictions
• Promote wider international debate about the
  implications of asset securitisation for monetary
  and financial statistics

5
For discussion

• The WPFS are invited to
• Review the arguments set out in the paper
• Comment on any comparisons with securitisation
  activity in their own countries
• Consider whether and how tests should be
  established for the institutional status of
  securitisation SPEs