Sub-sector: Other financial intermediaries, except insurance corporations and pension funds (S.123)

2.53 Definition:

The sub-sector other financial intermediaries except insurance corporations and pension funds (S.123) consists of all financial corporations and quasi-corporations which are principally engaged in financial intermediation by incurring liabilities in forms other than currency, deposits and/or close substitutes for deposits from institutional units other than monetary financial institutions, or insurance technical reserves.

2.54 Sub-sector S.123 includes various types of financial intermediaries especially those which are predominantly engaged in long-term financing. In most cases this predominant maturity forms the basis of a distinction from the other monetary financial institutions sub-sector. Based on the non-existence of liabilities in the form of insurance technical reserves, the borderline with the insurance corporations and pension funds sub-sector can be determined.

2.55 In particular, the following financial corporations and quasi-corporations are classified in sub-sector S.123 unless they are MFIs:

  1. corporations engaged in financial leasing;
  2. corporations engaged in hire purchase and the provision of personal or commercial finance;
  3. corporations engaged in factoring;
  4. security and derivative dealers (on own account);
  5. specialised financial corporations such as venture and development capital companies, export/import financing companies;
  6. financial vehicle corporations, created to be holders of securitized assets;
  7. financial intermediaries which receive deposits and/or close substitutes for deposits from MFIs only;
  8. holding corporations which only control and direct a group of subsidiaries principally engaged in financial intermediation and/or in auxiliary financial activities, but which are not financial corporations themselves (see paragraph 2.43).

2.56 Sub-sector S.123 does not include non-profit institutions recognised as independent legal entities serving other financial intermediaries except insurance corporations and pension funds, but not engaged in financial intermediation. They are classified in sub-sector S.124 (see paragraph 2.44.).