Government Finance Statistics Manual 2014

18 Government Finance Statistics Manual 2014

corporations or entities that provide loans from

own funds provided by only one sponsor. Cap-

tive insurance is the exception and is classifi ed as

an insurance corporation.

2.55 Financial intermediaries can be divided into

seven subsectors according to the intermediary’s activ-

ity in the market and the liquidity of its liabilities. Th ese

seven subsectors are: central bank; deposit-taking cor-

porations except the central bank; money market funds;

nonmoney market investment funds; other fi nancial

intermediaries except insurance corporations and pen-

sion funds; insurance corporations; and pension funds.

2.56 As indicated in Figure 2.3 and Table 7.11, in

GFS the fi nancial corporations are presented as fol-

lows for analytic purposes:

• Th e central bank


• Deposit-taking corporations except the central
  bank


• Other fi nancial corporations—including all fi -
  nancial intermediaries except deposit-taking
  corporations, fi nancial auxiliaries, and captive
  fi nancial institutions and money lenders.
  2.57 Th e fi nancial corporations sector includes
  public and private fi nancial corporations comprising:


• All resident fi nancial corporations (as defi ned
  in paragraphs 2.31–2.35), regardless of the resi-
  dence of their shareholders


• Th e branches of nonresident enterprises (see para-
  graph 2.20) that are engaged in fi nancial activity in
  the economic territory on a long-term basis


• All resident NPIs that are market producers of
  fi nancial services (see paragraph 2.36 – 2.37).

General government sector

2.58 Th e general government sector consists of

resident institutional units that fulfi ll the functions

of government as their primary activity. Th ese insti-

tutional units perform the principal economic func-

tions of government, as described in paragraph 2.38,

in addition to fulfi lling their political responsibilities

and their role of economic regulator. Th e general gov-

ernment sector comprises:

• All government units of central, state, provincial,
  regional, and local government, and social secu-
  rity funds (see paragraphs 2.76–2.103) imposed
  and controlled by those units


• All nonmarket NPIs that are controlled by gov-

ernment units (see paragraph 2.83).

2.59 Th e general government sector does not include

public corporations, even when all the equity of such

corporations is owned by government units, nor quasi-

corporations that are owned and controlled by gov-

ernment units. However, unincorporated enterprises

owned by government units that are not quasi-corpora-

tions remain integral parts of those units and, therefore,

must be included in the general government sector.

Households sector

2.60 Th e households sector consists of all resident

households (see paragraphs 2.28–2.29). Households

may be of any size and take a variety of diff erent forms in

diff erent societies or cultures. All physical persons in the

economy must belong to one and only one household.

Households supply labor, undertake fi nal consumption,

and, as entrepreneurs, produce market goods and non-

fi nancial (and possibly fi nancial) services.

Nonprofi t institutions serving households (NPISHs) sector

2.61 Th e nonprofi t institutions serving house-

holds (NPISHs) sector consists of resident non-

market nonprofi t institutions (NPIs) that are not

controlled by government. Th ey provide goods and

services to households for free or at prices that are not

economically signifi cant. One type of NPISHs is cre-

ated by associations of persons to provide goods or,

more oft en, services primarily for the benefi t of the

members themselves. For example, professional or

learned societies, political parties, trades unions, con-

sumers’ associations, churches or religious societies,

and social, cultural, recreational, or sports clubs. Th ey

do not include bodies serving similar functions that

are controlled by government units. Religious institu-

tions are usually excluded from general government

and classifi ed as NPISHs even when mainly fi nanced

by government units if this majority fi nancing is not

seen as empowering control by government. Political

parties in countries with one-party political systems

that are controlled by government units by means of

providing the necessary fi nance are included in the

general government sector. A second type of NPISHs

consists of charities, and relief or aid agencies that

are created for philanthropic purposes, while a third

type provides collective services, such as research

institutions that make their results freely available,

environmental groups, etc. By convention, nonmarket

NPIs controlled by foreign governments are classifi ed

as NPISHs in the host economy.