Statistical Terms Glossary

Financial intermediaries are units which incur liabilities on their own account on financial markets by borrowing funds which they lend on different terms and conditions to other institutional units

Normally, an intermediary between the U.S. Treasury (or equivalent) and the market

World Bank loan to a financial intermediary, such as a central Bank.

Financial intermediation is a productive activity in which an institutional unit incurs liabilities on its own account for the purpose of acquiring financial assets by engaging in financial transactions on the market; the role of financial intermediaries on the market; the role of financial intermediaries is to channel funds from lenders to borrowers by intermediating between them.

Financial intermediation services indirectly measured (FISIM) is an indirect measure of the value of financial intermediation services provided but for which financial institutions do not charge explicitly.

The financial lease essentially is a method by which the lessee finances the purchase of goods. The financial lease entails a financial claim, which is the asset of the lessor and the liability of the lessee

A financial lease is a contract between lessor and lessee whereby the lessor purchases a good that is put at the disposal of the lessee and the lessee pays rentals that enable the lessor, over the period of the contract, to cover all, or virtually all, costs, including interest; all the risks and rewards of ownership are, de facto, transferred from the legal owner of the good (the lessor) to the user of the good (the lessee).

Financial leasing companies engage in financing the purchase of tangible assets. The leasing company is the legal owner of the goods, but ownership is effectively conveyed to the lessee, who incurs all benefits, costs, and risks associated with ownership of the assets

A financial liability (1) requires a debtor to make a payment, or payments, to a creditor in circumstances specified in a contract between them; or (2) specifies between the two parties certain rights or obligations, the nature of which requires them to be treated as financial

Covers the legal and administrative systems and procedures put in place to permit government ministries and agencies to conduct their activities so as to ensure correct usage of public funds which meets defined standards of probity and regularity.

Market for the exchange of capital and credit in the economy. It is divided into money market and capital market. Note that Raymond Barre, in his seminal Economy politique, defines marché des capitaux as the overall market, equivalent to the English financial market, the marché monétaire as le marché des capitaux à court terme (= money market) and the marcIU financier as le marchi des capitaux à long tenne (= capital market). However, various Francophone authors differ on this issue and you will frequently see marché financier used for the English financial market and marché de(s) capitaux used for capital market. Note also that, while Barre uses marche des capitaux, many writers use marché de capitaux.

Financial policies refers to policies related to the regulation, supervision, and oversight of the financial and payment systems, including markets and institutions, with the view to promoting financial stability, market efficiency, and client-asset and consumer protection.

Ratios which show a corporation's financial structure. They include liquidity and leverage ratios.

Distortion in the financial system, with negative interest rates, subsidy interest rates to some privileged borrowers, selective credit allocation, and excessive bureaucratic control over the financial system.

Financial risk protection is a key component of universal health coverage (UHC), which is defined as access to all needed quality health services without financial hardship.

The financial sector is the set of institutions, instruments, and the regulatory framework that permit transactions to be made by incurring and settling debts; that is, by extending credit.

A joint IMF and World Bank program introduced in May 1999, the FSAP aims to increase the effectiveness of efforts to promote the soundness of financial systems in member countries.

FSIs are indicators of the current financial health and soundness of the financial institutions in a country, and of their corporate and household counterparts. They include both aggregated individual institution data and indicators that are representative of the markets in which the financial institutions operate.

Income from loans and investments minus cost of borrowing.

The FSF was created in February 1999 to promote international financial stability through enhanced information exchange and international cooperation in financial market supervision and surveillance.

The accounts drawn up by an organisation to report its financial affairs. Financial statements are often prepared under regulations governing matters such as their content and publication.

Financial statistics consist of a comprehensive set of stock and flow data on the financial assets and liabilities of all sectors of an economy. The financial statistics are organised and presented in formats designed to show financial flows among the sectors of an economy and corresponding financial asset and liability positions

A financial system consists of institutional units and markets that interact, typically in a complex manner, for the purpose of mobilizing funds for investment, and providing facilities, including payment systems, for the financing of commercial activity.

In the balance of payments, transactions in the financial account component of the capital and financial account would correspond to entries in columns for the financial account of the rest of the world, but changes in assets of the rest of the world would represent changes in liabilities for the compiling economy and vice versa

Financial transactions between institutional units and between institutional units and the rest of the world cover all transactions involving change of ownership of financial assets, including the creation and liquidation of financial claims

The holding of assets (e.g. savings) in financial form (e.g. bills, bonds, cash) as opposed to in the form of fixed assets (e.g. gold, real property).