Part 1--Proposed New Industry Structure for Finance and Insurance

Section A--NAICS Structure

North American Industry Classification System (NAICS)

Agreement Number 24

  This Document represents the proposed agreement on the structure of the North American
Industry Classification System (NAICS) for the following sector:
Finance and Insurance.
  The detailed NAICS structure along with a brief description of the structure is attached
(Attachments 1 and 2).  Each country agrees to release a copy of the proposed NAICS structure
to interested data users.  Comments received will be shared among the countries and additional
discussions will be held before a final decision on the structure is made.  Each country may add
additional detailed industries, below the NAICS industry level of NAICS, as necessary to meet
national needs, so long as this additional detail aggregates to the NAICS industry level in order
to ensure full comparability among the three countries.  This NAICS structure was presented and
provisionally accepted at the 
NAICS Committee meeting held on December 12 and December 13, 1995 in Washington, D.C.

ACCEPTED:           Signature           Date

Canada              /s/ Jacob Ryten          12/13/95
Mexico              /s/ Enrique Ordaz        12/13/95
United States            /s/ Jack E. Triplett          12/13/95

ATTACHMENT 1--NAICS STRUCTURE

52    FINANCE AND INSURANCE
521     Monetary Authorities - Central Bank
5211      Monetary Authorities - Central Bank
52111       Monetary Authorities - Central Bank
522     Credit Intermediation and Related Activities
523     Securities, Commodity Contracts, and Other Intermediation and Related Activities
5231      Securities and Commodity Contracts Intermediation and Brokerage 
5232      Securities and Commodity Exchanges
52321       Securities and Commodity Exchanges
5239      Other Financial Investment Activities
524     Insurance Carriers and Related Activities
5241      Insurance Carriers
5242      Agencies, Brokerages, and Other Insurance Related Activities

Attachment 2--North American Industry Classification System

Draft Classification for:
Finance and Insurance

  Representatives of the statistical agencies of Canada, Mexico, and the United States agree to
a draft classification for these industries.
  This draft classification constitutes the sector Finance and Insurance.  This sector is
composed of four subsectors:  Monetary Authorities - Central Bank; Credit Intermediation and
Related Activities; Securities, Commodity Contracts, and Other Intermediation and Related
Activities; and Insurance Carriers and Related Activities.  These subsectors are subdivided into
six industry groups.  
  In addition, Canada and the United States will further subdivide the NAICS structure,
creating, in all, nine industry groups and 25 industries; this structure is shown in Attachment 3. 
Mexico will have its own industry detail to reflect the very different financial institutions that
exist in Mexico.

A General Outline

  The Finance and Insurance sector consists of establishments primarily engaged in financial
transactions that is, transactions involving the creation, liquidation, or change in ownership of
financial assets or in facilitating financial transactions.  Three principal types of activities can
be identified:
      Some establishments raise funds by taking deposits and/or issuing securities, and, in
      the process, incur liabilities.  They use these funds to acquire financial assets by
      making loans and/or purchasing securities.  Putting themselves at risk, they channel
      funds from lenders to borrowers and transform or repackage the funds with respect to
      maturity, scale and risk.  This activity is known as financial intermediation, and that
      term will be used in the rest of this agreement. 
      Some establishments are engaged in the pooling of risk.  They collect fees insurance
      premiums or annuity considerations; build up reserves; invest those reserves; and make
      contractual payments.  Fees are based on the expected incidence of the insured risk and
      the expected return on investment.
      Some establishments are engaged in providing specialized services facilitating, or
      supporting, financial intermediation, insurance, and employee benefit programs.
  In addition, establishments charged with monetary control the monetary authorities are
included in this sector.
  The subsectors, industry groups, and industries within this sector have been defined on the
basis of their unique production processes.  As with all industries, the production processes are
distinguished by their use of specialized human resources and specialized physical capital.  In
addition, the way in which these establishments acquire and allocate financial capital their
source of funds and the use of those funds provides a third basis for distinguishing
characteristics of the production process.   For instance, the production process in raising funds
through deposit taking is different from the process of raising funds in bond or money markets. 
The process of making loans to individuals also requires 

different production processes than does the creation of investment pools or the underwriting of
securities.  
  Most of the Finance and Insurance subsectors contain one or more industry groups of
intermediaries with similar patterns of raising and using funds and another industry group of
establishments engaged in activities that facilitate, or are otherwise related to, that type of
financial or insurance intermediation.
  The subsector Monetary Authorities - Central Bank consists of establishments engaged in
such central banking functions as issuing currency, regulating the supply of credit, managing the
nation's international reserves, holding deposits that represent the reserves of other banks and
other central banks, and acting as fiscal agent for the central government.  The institutional
arrangements for performing these functions may differ among countries.   In Canada these
functions are performed by the Bank of Canada, in Mexico by the Bank of Mexico, and in the
United States by the Federal Reserve banks. 
          The subsector Credit Intermediation and Related Activities consists of two types of
     establishments: those that intermediate in credit markets and those that facilitate such
     intermediation.  Establishments in the first group lend funds to the public or to other borrowers, 
     raising the funds that they lend by accepting deposits from the public, by borrowing from other
     financial intermediaries, or by issuing commercial paper and debt in the capital markets. 
     Establishments that facilitate credit intermediation are engaged in such activities as mortgage and
     loan brokerage, clearinghouse and reserve services, and check cashing services.
     
          The subsector Securities, Commodity Contracts, and Other Intermediation and Related
     Activities contains three industry groups.  The first industry group, Securities and Commodity
     Contracts Intermediation and Brokerage, consists of establishments that put capital at risk in the
     process of engaging in underwriting securities issues or in making markets for securities and
     establishments that, as agents and brokers, act as intermediaries between buyers and sellers,
     usually charging a commission.  The second industry group, Securities and Commodity
     Exchanges, consists of securities and commodity exchanges that provide administrative,
     monitoring, and enforcement services for financial markets.  The third industry group, Other
     Financial Investment Activities, consists of establishments that facilitate the marketing of other
     financial contracts or provide portfolio management, other investment advisory services, trust,
     fiduciary, and custody services.
          The subsector Insurance Carriers and Related Activities contains two industry groups.  The
     first industry group, Insurance Carriers, consists of establishments that intermediate as the
     consequence of pooling risks.  They invest premiums to build up a portfolio of financial assets to
     be used against future claims.  Industries are defined in terms of the type of risk being insured
     against, such as, death, loss of employment because of age or disability, and property damage. 
     Contributions and premiums are set on the basis of actuarial calculations of probable payouts
     based on risk factors from experience tables and expected investment returns on reserves.  The
     second industry group, Agencies, Brokerages, and Other Insurance Related Activities, consists of
     agencies and brokerages selling insurance and establishments providing other insurance- and
     employee-benefit-related services.
          Background: Existing industry classification structures for this sector typically have been
     specified at the enterprise level by type of financial institution banks, life insurance companies,
     etc.  Until recently, the functions that could be performed by particular institutions were
     constrained by the regulatory structure in each country; but this situation is rapidly changing,
     particularly in Canada and the United States.  The NAICS classification proposed for Finance
     and Insurance is a bridge between the existing institutional basis and a structure based on the
     activities performed within these institutions.
          Industries are defined in terms of activities for which a production process can be specified,
     and many of these activities are not exclusive to a particular type of financial institution. 
     Although the activities carried out by establishments in the Finance and Insurance sector appear
     to be broadly similar in the three countries, the manner in which they have been organized and
     delivered are unique to each country depending on laws, regulations, tradition, and
     technological advancements.  The extent to which these activities can be separately identified
     and measured is not clear; consequently, three-country NAICS is specified, for the most part,
     only at the subsector or industry group level.
          To deal with the varied activities taking place within existing financial institutions, the
     approach is to split these institutions into components performing specialized services.  This
     requires defining the units engaged in providing those services and developing procedures that
     allow for their delineation.  These units are the equivalents for Finance and Insurance of the
     establishments defined for other industries.  There are differences in the present definition of the
     production unit in the three countries, ranging from the location in the United States to the
     enterprise in Mexico.  This requires that, in designing the classification structure, consideration
     be given to the appropriate definition and delineation of the producing unit to be classified.
          The output of many financial services, as well as the inputs and the processes by which they
     are combined, cannot be observed at a single location and can only be defined at a higher level of
     the organizational structure of the enterprise.  Additionally, a number of independent activities
     that represent separate and distinct production processes may take place at a single location
     belonging to a multi-location financial firm.  Activities are more likely to be homogeneous with
     respect to production characteristics than are locations, at least in financial services.  The
     classification proposed defines activities broadly enough that it can be used both by those
     classifying by location and by those employing a more top-down approach to the delineation of
     the establishment.
     
     Limitations and Constraints of the Classification
     
          The classification of establishments engaged in activities that facilitate, or are otherwise
     related to, the various types of intermediation have been included in individual subsectors, rather
     than in a separate subsector dedicated to services alone.  This is because these services are
     performed by intermediaries as well as by specialist establishments, and the extent to which the
     activity of the former can be separately identified is not clear.  An aggregate that includes all of
     the service, wherever it is produced, is preferable to one that misses much of it.  In particular, in
     many instances Mexico proposes to collect data on an institutional basis and would be unable to
     separate services.  Aggregates for related activities are identified at the 3-digit industry group
     level, wherever possible.  They can be reaggregated to a services subsector if desired.
          The boundaries of the Finance and Insurance sector have been defined so as to encompass
     establishments primarily engaged in financial transactions that is, transactions involving the
     creation, liquidation, or change in ownership of financial assets or in facilitating financial
     transactions.  Financial industries are extensive users of electronic means for facilitating the
     verification of financial balances, authorizing transactions, transferring funds to and from
     transactors' accounts, notifying banks (or credit card issuers) of the individual transactions and
     providing daily summaries.  Since these transaction processing activities are integral to the
     production of finance and insurance services, establishments that principally provide a financial
     transaction processing service are classified to this sector, rather than to the data processing
     industry in the Information sector.
          Funds, trusts and other financial vehicles that are not separate production units and do not
     have employees are excluded from the structure in the three-country agreement.  The
     management of these funds can require significant human and capital resources, however, and
     the management activity is a major source of the value added in the investment intermediary
     industry.  In NAICS, where there are separate establishments and employees devoted to the
     management of funds, they are classified in "Other Financial Investment Activities" by all three
     countries. 
     
          These legal entities that hold portfolios of assets on behalf of others are significant, however,
     and data on them are required for a variety of purposes.  All three countries may include these
     legal entities in the compilation of financial and other statistics, but whereas Canada and Mexico
     do not propose to include them in their compilation of production statistics, the United States
     proposes to do so.  The United States, therefore, has extended the boundary to include funds,
     trusts and other financial vehicles in a fifth subsector.
     
     Relationship to ISIC
     
     All of the industries included in this sector are contained within Divisions 65, Financial
     Intermediation, Except Insurance and Pension Funding; 66, Insurance and Pension Funding, and
     67, Activities Auxiliary to Financial Intermediation in the current International Standard
     Industrial Classification of All Economic Activities (ISIC, Revision 3) of the United Nations. 
     ISIC Division 67, however, also includes actuarial consulting services, which are in the
     Professional, Scientific, and Technical subsector of NAICS.
     For Finance and Insurance, NAICS differs from ISIC, Rev.3, in the following respects:  there
     are fewer detailed industries in NAICS; NAICS does not distinguish between monetary
     intermediation and other intermediation; NAICS monetary authorities (ISIC central banking) are
     not part of depository credit intermediation; NAICS includes activities related to financial
     intermediation within each subsector, although to the extent that such industry groups are
     identified, they can be reaggregated to approximate ISIC Division 67; and those holding
     companies, pension funds, and other funds that are included in ISIC are excluded from NAICS.
     
     Some Changes to the National Classifications
     
          For Canada, an important revision is that the retail operations of banks, trust companies, and
     other related institutions, as well as the corporate and institutional activities of these institutions,
     are classified to Commercial Banking, which is in the Depository Credit Intermediation industry
     group.  There are no longer separate classes for institutions as defined in the 1980 Canadian
     Standard Industrial Classification (CSIC), except credit unions.
          The classes contained in Major Group 71 of the CSIC are to be found in a new industry group
     entitled Non-Depository Credit Intermediation in NAICS, with the exception of Venture Capital
     Companies, which are in the industry Miscellaneous Intermediation.
          Activities related to depository and non-depository credit intermediation are included in a
     single industry group, Activities Related to Credit Intermediation, within the NAICS subsector,
     Credit Intermediation and Related Activities.  For instance, central credit unions, clearing houses,
     and reserve and other depository services are included here.  Previously all of the operations of
     credit card companies were classified to CSIC 7122, Credit Card Companies.  In NAICS,
     establishments specializing in the lending activities associated with credit cards are classified in
     the industry, Credit Card Issuing, a component of the industry group, Non-Depository Credit
     Intermediation.  Establishments involved in the processing of credit cards (including billing and
     collection) are classified in an industry within the industry group, Activities Related to Credit
     Intermediation. In Canada, any establishments primarily involved in the processing of credit
     cards and also involved in other financial transactions would be placed in the industry group,
     Activities Related to Credit Intermediation.
          There are also important revisions in the treatment of investment intermediary industries. 
     CSIC Major Group 72, Investment Intermediary Industries, includes establishments engaged in
     investing in a portfolio of securities and other investments on behalf of shareholders or unit
     holders.  Also included in this major group are various funds and holding companies. The funds
     themselves are the result of savings attributable to other sectors of the economy, do not have a
     direct role in production, and have been excluded from NAICS.  The management of these funds
     can require significant human and capital resources and is the primary source of the value added
     in this industry.  Where there are separate establishments with employees devoted to the
     management of funds, such as in the case of mutual fund management companies, they are
     classified in the industry group, Other Financial Investment Activities.
          For Mexico, this sector corresponds almost entirely to the combination of CMAP's subsector
     81 (Insurance and financial services) and branch 9740 (Services related to financial, insurance
     and bond institutions).  The current subsector 81 comprises 18 activity classes and branch 9740
     has 5 additional classes; of these 23 classes, 11 are entirely comparable with other similar
     NAICS industry classes, whereas the remaining 12 underwent some changes.
          Class 811046 (Non-banking Institutions engaged in savings and loans) and class 811047
     (other credit institutions) are included in NAICS subsector, Credit Intermediation and Related
     Activities; class 813002 refers to insurance services that is included in NAICS industry group
     Insurance Carriers.
          On the other hand, some minor CMAP classes were regrouped or placed in miscellaneous
     NAICS industries as in the case of surety services (813001) or the financial advisory category
     and development committees (811045).
          Many NAICS activities will not be applicable in the case of Mexico since they refer to
     activities that do not exist in that country, although some may be created in the future.  These
     activities are credit unions, interbanking and reserve boards, consumer credit, real estate credit,
     mortgage brokers and other credit, securities and commodity brokerage. 
     The two other "new" industries with respect to the CMAP are miscellaneous industries generated
     by the restructuring of this sector.
          Most of the current CMAP classes will correspond either to a NAICS industry or to a
     national industry.  So, in fact, with respect to the CMAP, these changes do not represent a great
     impact on the time series.
          For the United States, 1987 SIC Major Group 60, Depository Institutions, and 1987 SIC
     Major Group 61, Non-Depository Credit Institutions, differ from NAICS subsector Credit
     Intermediation and Related Activities in that the NAICS subsector does not include the central
     bank, which is in a subsector of its own; and a number of activities are broken out as industries
     and classified in other industry groups or subsectors trust, fiduciary, and custody services, for
     example.  In addition, NAICS recognizes the lending activities of pawnbrokers in this subsector;
     pawnbrokers were classified in 1987 SIC 5932, Used Merchandise Stores. 
          1987 SIC Major Group 62, Security and Commodity Brokers, Dealers, Exchanges, and
     Services, differs from NAICS subsector Securities, Commodity Contracts, and Other
     Intermediation and Related Activities in that the NAICS subsector more clearly delineates the
     distinction between portfolio management (classified here) and the assets under management
     (excluded from NAICS); it includes the trust, fiduciary, and custody activities of banks and other
     financial institutions; it includes part of 1987 SIC 6733, Trusts Except Educational, Religious,
     and Charitable; it includes part of 1987 SIC 6792, Oil Royalty Traders; and it includes part of
     1987 SIC 6799, Investors Not Elsewhere Classified. 
          1987 SIC Major Group 63, Insurance Carriers, and 1987 SIC Major Group 64, Insurance
     Agents, Brokers, and Service, differ from NAICS subsector Insurance Carriers and Related
     Activities in that the NAICS subsector excludes those pension and other employee benefit funds
     that are simply legal entities organized to hold portfolios of securities and other assets on behalf
     of the beneficiaries of the funds. 
          Most of 1987 SIC Major Group 67, Holding and Other Investment Offices, is not included in
     the Finance and Insurance subsector in NAICS.  1987 SIC Industry Group 671, Holding
     Companies, and 1987 SIC Industry Group 672, Investment Offices, are included in the Funds,
     Trusts, and Other Financial Vehicles subsector, which is not part of NAICS but is a U.S. only
     subsector.  1987 SIC 6732, Educational, Religious, and Charitable Trusts, is included in the
     Religious, Grantmaking, Civic and Other Membership Organizations subsector; part of 1987 SIC
     6733, Trusts Except Educational, Religious, and Charitable, is included in the Securities,
     Commodity Contracts, and Other Intermediation and Related Activities and part in Funds, Trusts
     and Other Financial Vehicles subsector; 1987 SIC 6794, Patent Owners and Lessors, is now a
     separate subsector; and 1987 SIC 6798, Real Estate Investment Trusts, and part of 1987 SIC
     6799, 
     Investors Not Elsewhere Classified, are included in the Funds, Trusts, and Other Financial
     Vehicles subsector.
     
     Achievement of Objectives
     
          The classification meets the objectives for the North American Industry Classification
     System (NAICS).  It is based on the production function concept, and it groups establishments
     with similar production processes.  Data for financial institutions carrying out several activities
     will need to be disaggregated into their components for classification. 
          The classification achieves comparability at the subsector or industry group level for the
     three countries and at the industry level for Canada and the United States.  The unique aspects of
     the financial systems in the three countries, as well as countries' differing abilities to break down
     institutional data into their component activities, are accommodated through the provision of a
     number of national industries in the classification.
          To the extent possible, the classification structure allows for the delineation of new and
     emerging industries in this sector by taking into account the foreseeable changes in regulation. 
     Innovative use of technology allows the sector to rapidly develop new products and to deliver
     them in new ways.
     
     ATTACHMENT 3--PROPOSED U.S./CANADIAN 5-DIGIT DETAIL FOR
     FINANCE AND INSURANCE
     
     52             Finance and Insurance
     521                 Monetary Authorities - Central Bank
     5211                     Monetary Authorities - Central Bank
     52111                         Monetary Authorities - Central Bank
     522                 Credit Intermediation and Related Activities
     5221                     Depository Credit Intermediation 
     52211                         Commercial Banking
     52212                         Savings Institutions
     52213                         Credit Unions
     52219                         Other Depository Credit Intermediation
     5222                     Non-Depository Credit Intermediation
     52221                         Credit Card Issuing
     52222                         Sales Financing
     52229                         Other Non-Depository Credit Intermediation
     5223                     Activities Related to Credit Intermediation
     52231                         Mortgage and Other Loan Brokers
     52232                         Financial Transactions Processing, Reserve, and Clearing House Activities
     52239                         Other Activities Related to Credit Intermediation
     523                 Securities, Commodity Contracts, and Other Intermediation and Related Activities
     5231                     Securities and Commodity Contracts Intermediation and Brokerage 
     52311                         Investment Banking and Securities Dealing
     52312                         Securities Brokerage
     52313                         Commodity Contracts Dealing
     52314                         Commodity Brokerage
     5232                     Securities and Commodity Exchanges
     52321                         Securities and Commodity Exchanges
     5239                     Other Financial Investment Activities
     52391                         Miscellaneous Intermediation
     52392                         Portfolio Management
     52393                         Investment Advice 
     52399                         All Other Financial Investment Activities
     524                 Insurance Carriers and Related Activities
     5241                     Insurance Carriers
     52411                         Direct Life Insurance Carriers
     52412                         Direct Non-Life Insurance Carriers
     52413                         Reinsurance Carriers
     5242                     Agencies, Brokerages, and Other Insurance Related Activities
     52421                         Insurance Agencies and Brokerages
     52429                         Other Insurance Related Activities
     
       As mentioned earlier, Canada and the United States have agreed to subdivide the NAICS
     structure and create a number of industries.  Three additional industry groups are specified, all in
     the sector Credit Intermediation and Related Activities, and 23 industries are defined in the
     industry groups that are not detailed in NAICS.  As compared with the existing classifications,
     the major features of the proposed elaboration of the NAICS classification structure for this
     sector are the following:
                    Financial intermediation is more clearly differentiated from services facilitating or
                         otherwise related to financial intermediation.
                    Industries are more homogeneous in terms of the activities included.
                    The classification is less reflective of regulatory definitions.
                    The proposed NAICS structure clearly differentiates between the management of funds
                         and the assets under management.
                    Remaining class of customer distinctions reflect true differences in production
                         processes.
       The NAICS subsector Credit Intermediation and Related Activities is subdivided into three
     industry groups:  Depository Credit Intermediation, Non-Depository Credit Intermediation, and
     Activities Related to Credit Intermediation.  The first industry group, Depository Credit
     Intermediation, consists of establishments that raise the funds they lend by accepting deposits;
     within it, industries are defined on the basis of differences in the types of deposit liabilities
     assumed and the nature of the credit extended.  The second industry group, Non-Depository
     Credit Intermediation, consists of establishments that fund themselves by borrowing from other
     financial intermediaries or by issuing commercial paper and other debt instruments; within this
     group, industries are defined on the basis of the type of credit being extended.  The third industry
     group, Activities Related to Credit Intermediation, consists of establishments that facilitate credit
     intermediation by such activities as bringing borrowers and lenders together and clearing checks
     and credit card transactions.
       The NAICS industry group Securities and Commodity Contracts Intermediation and
     Brokerage is subdivided into four industries that distinguish between brokers who bring together
     buyers and sellers of financial instruments, usually charging a commission, and establishments
     that intermediate by putting capital at risk and that are compensated by price spreads on the
     instruments they trade.  An additional distinction is made between establishments operating in
     securities markets and establishments operating in commodities contract markets.
       The NAICS industry group Other Financial Investment Activities is subdivided into four
     industries.  Miscellaneous Intermediation consists of establishments that put capital at risk in
     instruments other than securities and commodity contracts.  Establishments in Portfolio
     Management have authority to direct the use or investment of funds or other assets; for a fee,
     they buy and sell securities or other assets in portfolios of assets entrusted to them and make
     decisions about the objectives and content of these portfolios.  Investment Advice consists of
     establishments that provide investment information on a fee basis, but do not have authority to
     execute trades.  Establishments in All Other Financial Investment Activities are engaged in such
     activities as providing trust, fiduciary and custody services.
       The NAICS industry group Insurance Carriers is subdivided into three industries.  Direct Life
     Insurance Carriers underwrite annuities and life, accidental death and dismemberment, and
     disability income insurance directly to policyholders.  Direct Non-Life Insurance Carriers
     underwrite various lines of insurance (other than life insurance) directly to policyholders. 
     Reinsurance Carriers assume all or part of insurance policies originally written by another
     carrier.
       The NAICS industry group Agencies, Brokerages, and Other Insurance Related Activities is
     subdivided into two industries.  Insurance Agencies and Brokerages consists of establishments
     that sell insurance products.  Other Insurance Related Activities consists of establishments
     providing, on a fee or contract basis, such insurance services as claims administration and
     adjusting.
     
     Section B - Annex: United States National Industry Detail
     
       As explained in the Structure presentation of this notice, the three country agreement on
     NAICS envisions that each country may develop national detail industries below the NAICS
     industry level, so long as the national detail can be aggregated to the NAICS classification, thus
     assuring full North American comparability.  As explained earlier, for finance and insurance the
     three countries agreed to comparability at either the subsector or the industry group level.  
     However, Canada and the United States have agreed to a classification that extends
     comparability to the 5-digit industry level.  Attachment 3 shows the industry detail agreed upon
     by Canada and the United States.  These industries can be aggregated to the NAICS
     classifications, thus assuring full North American comparability.
       The ECPC is proposing U.S. 6-digit industry detail for this NAICS industry sector.  In the
     following tables, proposed 6-digit detail is shown.  For cases where no 6-digit detail is shown,
     the ECPC is proposing that the 5-digit industries will also represent the most detailed U.S.
     industries.
       In addition to the 6-digit detail, there is a U.S.-only subsector Funds, Trusts, and Other
     Financial Vehicles that provides a classification structure for legal entities organized to hold
     portfolios of securities or other assets on behalf of shareholders, beneficiaries of pension funds,
     etc.  The portfolio is customized so as to achieve specific investment characteristics, such as
     diversification, risk, rate of return, and price volatility.  These entities earn interest, dividends,
     and other property income, but have no employment or revenue from the sale of services.  The
     funds themselves are excluded from the NAICS classification, because they are not separate
     production units and do not have employees, although establishments with employees devoted to
     the management of funds are classified in several of the industries within the NAICS subsectors
     Securities, 
     Commodity Contracts, and Other Intermediation and Related Activities and Insurance Carriers
     and Related Activities. 
     
       Despite their lack of employment, these funds are economically significant, and the United
     States requires data related to them for various purposes.  For instance, financial flow accounts
     and balance of payments accounts track changes in outstanding assets and liabilities, and interest
     and dividend income earnings are important in determining the distribution of income. 
     Moreover, funds are frequently given tax numbers, become part of the survey frame, and are
     sometimes surveyed.  It is necessary to have a structure for classifying such records and keeping
     them separate from those of producing units.  Consequently, these funds are placed in a U.S.-only subsector at the end of the NAICS classification structure.  Included in this subsector are: 
     Holding Companies, Insurance and Employee Benefit Funds, and Investment Pools and Funds.
                                                    TABLE 1
     
     The definition of status codes are as follows: E-existing industry; N-new industry; R-revised industry; and * means "part of".  The abbreviation NEC is used for Not Elsewhere
     Classified.
     
     
     
     
     1997 NAICS and U.S. description
     
     Status
     Code
     1987
     SIC
     Code
     
     
     1987 SIC description 
     
     
     
     
     
     
     
     
     521
     Monetary Authorities - Central Bank
     
     
     
     
     
     5211
          Monetary Authorities - Central Bank
     
     
     
     
     
     52111
               Monetary Authorities - Central Bank
     E
     6011
     Federal Reserve Banks
     
     
     522
     Credit Intermediation and Related Activities
     
     
     
     
     
     5221
          Depository Credit Intermediation
     
     
     
     
     
     52211
               Commercial Banking
     R
     *6021
     National Commercial Banks (banking)
     
     
     
     
     
     *6022
     State Commercial Banks (banking)
     
     
     
     
     
     6029
     Commercial Banks, NEC 
     
     
     
     
     
     *6081
     Branches and Agencies of Foreign Banks (banking)
     
     
     52212
               Savings Institutions
     R
     6035
     Savings Institutions, Federally Chartered
     
     
     
     
     
     6036
     Savings Institutions, Not Federally Chartered
     
     
     52213
               Credit Unions
     R
     6061
     Credit Unions, Federally Chartered
     
     
     
     
     
     6062
     Credit Unions, Not Federally Chartered
     
     
     52219
               Other Depository Credit Intermediation
     N
     *6099
     Functions Related to Depository Banking, NEC (money order issuance)
     
     
     5222
          Non-Depository Credit Intermediation
     
     
     
     
     
     52221
               Credit Card Issuing
     N
     *6021
     National Commercial Banks (credit card issuing)
     
     
     
     
     
     *6022
     State Commercial Banks (credit card issuing)
     
     
     
     
     
     *6141
     Personal Credit Institutions (credit card issuing)
     
     
     52222
               Sales Financing
     N
     *6141
     Personal Credit Institutions (installment sales finance)
     
     
     
     
     
     *6153
     Short-Term Business Credit Institutions, Except Agricultural (business sales
     finance).
     
     
     
     
     
     *6159
     Miscellaneous Business Credit Institutions (finance leasing)
     
     
     52229
               Other Non-Depository Credit Intermediation
     
     
     
     
     
     522291
                    Consumer Credit
     R
     *6141
     Personal Credit Institutions (except installment sales finance and credit card
     issuing)
     
     
     522292
                    Real Estate Credit
     R
     *6162
     Mortgage Bankers and Loan Correspondents (mortgage bankers and originators)
     
     
     522293
                    International Trade Financing
     N
     *6081
     Branches and Agencies of Foreign Banks (international trade financing)
     
     
     
     
     
     6082
     Foreign Trade and International Banking Institutions
     
     
     
                    
     
     *6111
     Federal and Federally-Sponsored Credit Agencies (trade banks)
     
     
     
     
     
     *6159
     Miscellaneous Business Credit Institutions (trade banks)
     
     
     522294
                    Secondary Market Financing
     N
     *6111
     Federal and Federally Sponsored Credit Agencies (except trade banks)
     
     
     522299
                    All Other Non-Depository Credit Intermediation
     N
     *5932
     Used Merchandise Stores (pawnshops)
     
     
     
     
     
     *6081
     Branches and Agencies of Foreign Banks (agencies)
     
     
     
     
     
     *6111
     Federal and Federally-Sponsored Credit Agencies (except trade banks and
     secondary market financing)
     
     
     
     
     
     *6153
     Short-Term Business Credit Institutions, Except Agricultural (except credit card
     service and business sales finance)
     
     
     
     
     
     *6159
     Miscellaneous Business Credit Institutions (except trade banks and finance leasing)
     
     
     5223
          Activities Related to Credit Intermediation
     
     
     
     
     
     52231
               Mortgage and Other Loan Brokers
     E
     6163
     Loan Brokers
     
     
     52232
               Financial Transactions Processing, Reserve, and Clearing
                    House Activities
     N
     6019
     Central Reserve Depository Institutions, NEC
     
     
     
     
     
     *6099
     Functions Related to Depository Banking, NEC (electronic funds transfer networks
     and clearing house associations)
     
     
     
     
     
     *6153
     Short-Term Business Credit Institutions, Except Agricultural (credit card service)
     
     
     
     
     
     *7389
     Business Services, NEC (credit card service)
     
     
     52239
               Other Activities Related to Credit Intermediation
     N
     *6099
     Functions Related to Depository Banking, NEC (except money orders, electronic
     funds transfer networks and clearing houses, foreign currency exchanges, escrow
     and fiduciary agencies and  deposit brokers)
     
     
     
     
     
     *6162
     Mortgage Bankers and Loan Correspondents (mortgage  servicing)
     
     
     523
     Securities, Commodity Contracts and Other Intermediation and
     Related Activities
     
     
     
     
     
     5231
          Securities and Commodity Contracts Intermediation and
               Brokerage
     
     
     
     
     
     52311
               Investment Banking and Securities Dealing
     N
     *6211
     Security Brokers, Dealers, and Flotation Companies (securities dealers and
     underwriters)
     
     
     52312
               Securities Brokerage
     N
     *6211
     Security Brokers, Dealers, and Flotation Companies (security brokers)
     
     
     52313
               Commodity Contracts Dealing
     N
     *6099
     Functions Related to depository Banking, NEC  (foreign currency exchange)
     
     
     
     
     
     *6221
     Commodity Contracts Brokers and Dealers (commodity dealers)
     
     
     52314
               Commodity Brokerage
     N
     *6221
     Commodity Contracts Brokers and Dealers (commodity brokers)
     
     
     5232
          Securities and Commodity Exchanges
     
     
     
     
     
     52321
               Securities and Commodity Exchanges
     E
     6231
     Security and Commodity Exchanges
     
     
     5239
          Other Financial Investment Activities
     
     
     
     
     
     52391
               Miscellaneous Intermediation
     N
     *6211
     Securities Brokers, Dealers and Flotation Companies (except securities and
     commodity dealers)
     
     
     
     
     
     *6799
     Investors, NEC (venture capital companies)
     
     
     52392
               Portfolio Management
     N
     *6282
     Investment Advice (portfolio managers)
     
     
     
     
     
     *6371
     Pension, Health, and Welfare Funds (managers)
     
     
     
     
     
     *6733
     Trust, Except Educational, Religious, and Charitable (managers)
     
     
     
     
     
     *6799
     Investors, NEC (pool operators)
     
     
     52393
               Investment Advice
     R
     *6282
     Investment Advice (except portfolio managers)
     
     
     52399
               All Other Financial Investment Activities
     
     
     
     
     
     523991
                    Trust, Fiduciary and Custody Activities
     N
     *6021
     National Commercial Banks (trust services)
     
     
     
     
     
     *6022
     State Commercial Banks (trust services)
     
     
     
     
     
     6091
     Nondeposit Trust Facilities 
     
     
     
     
     
     *6099
     Functions Related to Depository Banking, NEC  (escrow and fiduciary agencies)
     
     
     
     
     
     *6289
     Services Allied With the Exchange of Securities or Commodities,  NEC (securities
     custodians)
     
     
     
     
     
     *6733
     Trusts, Except Educational, Religious, and Charitable (administrators of private
     estates)
     
     
     523999
                    Miscellaneous Financial Investment Activities
     R
     *6099
     Functions Related to Depository Banking, NEC  (deposit brokers)
     
     
     
     
     
     *6211
     Security Brokers, Dealers, and Flotation Companies (dealers, except security and
     commodity)
     
     
     
     
     
     *6289
     Services Allied With the Exchange of Securities or Commodities, NEC (except
     security custodians)
     
     
     
     
     
     *6792
     Oil Royalty Traders (investors on own account)
     
     
     524
     Insurance Carriers and Related Activities
     
     
     
     
     
     5241
          Insurance Carriers 
     
     
     
     
     
     52411
               Direct Life Insurance Carriers
     R
     *6311
     Life Insurance (life insurers-direct)
     
     
     52412
               Direct Non-Life Insurance Carriers
     
     
     
     
     
     524121
                    Property and Casualty Insurance Carriers
     R
     *6331
     Fire, Marine, and Casualty Insurance (fire, marine, and casualty insurers-direct)
     
     
     
     
     
     *6351
     Surety Insurance (financial responsibility insurers-direct)
     
     
     524122
                    Health and Medical Insurance Carriers
     R
     *6324
     Hospital and Medical Service Plans (health and medical insurers-direct)
     
     
     
     
     
     *6321
     Accident and Health Insurance (health and medical insurers-direct)
     
     
     524123
                    Title Insurance Carriers
     R
     *6361
     Title Insurance (title insurers-direct)
     
     
     524129
                    Other Direct Non-Life Insurance Carriers
     E
     6399
     Insurance Carriers, NEC
     
     
     52413
               Reinsurance Carriers
     N
     *6311
     Life Insurance (reinsurers)
     
     
     
     
     
     *6321
     Accident and Health Insurance (reinsurers)
     
     
     
     
     
     *6324
     Hospital and Medical Service Plans (reinsurers)
     
     
     
     
     
     *6331
     Fire, Marine, and Casualty Insurance (reinsurers)
     
     
     
     
     
     *6351
     Surety Insurance (reinsurers)
     
     
     
     
     
     *6361
     Title Insurance (reinsurers)
     
     
     5242
          Agencies, Brokerages and Other Insurance Related
               Activities
     
     
     
     
     
     52421
               Insurance Agencies and Brokerages
     R
     *6411
     Insurance Agents, Brokers and Service (insurance agents and brokers)
     
     
     52429
               Other Insurance Related Activities
     
     
     
     
     
     524291
                    Claims Adjusters
     N
     *6411
     Insurance Agents, Brokers and Service (insurance claims adjusters)
     
     
     524292
                    Third Party Administration for Insurance and Pension
                         Funds
     N
     *6371
     Pension, Health, and Welfare Funds (administrators)
     
     
     
     
     
     *6411
     Insurance Agents, Brokers and Service (processors)
     
     
     524299
                    All Other Activities Related to Insurance 
     N
     *6411
     Insurance Agents, Brokers and Service (except processors, agents and brokers, and
     claims adjusters)
     
     
     525
     Funds, Trusts and Other Financial Vehicles (U.S. Only)
     
     
     
     
     
     5251
          Holding Companies
     
     
     
     
     
     52511
               Holding Companies
     
     
     
     
     
     525111
                    Bank Holding Companies
     E
     6712
     Offices of Bank Holding Companies
     
     
     525119
                    Other Holding Companies
     E
     6719
     Offices of Holding Companies, NEC
     
     
     5252
          Insurance and Employee Benefit Funds
     
     
     
     
     
     52521
               Pension Funds
     N
     *6371
     Pension, Health, and Welfare Funds (pension funds)
     
     
     52522
               Health and Welfare Funds
     N
     *6371
     Pension, Health, and Welfare Funds (health and welfare funds)
     
     
     52523
               Insurance and Other Employee Benefit Funds
     N
     *6321
     Accident and Health Insurance (self insurers)
     
     
     
     
     
     *6324
     Hospital and Medical Service Plans (self insurers)
     
     
     
     
     
     *6331
     Fire, Marine, and Casualty Insurance (self insurers)
     
     
     
     
     
     *6733
     Trusts, Except Educational, Religious, and Charitable (vacation funds for
     employees)
     
     
     5259
      Other Investment Pools and Funds
     
     
     
     
     
     52591
               Open-End Investment Funds
     E
     6722
     Management Investment Offices, Open-End
     
     
     52592
               Personal Trusts, Estates, and Agency Accounts
     N
     *6733
     Trusts, Except Educational, Religious, and Charitable (personal trusts, estates, and
     agency accounts)
     
     
     52593
               Mortgage Investment Funds
     E
     6798
     Real Estate Investment Trusts (REIT funds) 
     
     
     52599
               Other Financial Vehicles
     E
     6726
     Unit Investment Trusts, Face-Amount Certificate Offices, and Closed-End
     Management Investment Offices
     
                                                    Table 2
     
     The abbreviation "pt" means "part of". @ means time series break has been created that is greater than 3% of the 1992 value of revenue for the 1987 SIC industry.  The
abbreviation NEC is used for Not Elsewhere Classified.

1987 USIC code
1987 USIC description
1997 U.S. description

5932
Used Merchandise Stores

     Pawnshops
All Other Non-Depository Credit Intermediation (pt)

     Except Pawnshops
Used Merchandise Stores

6011
Federal Reserve Banks
Monetary Authorities-Central Banks

6019@
Central Reserve Depository Institutions, NEC
Financial Transactions Processing, Reserve, and Clearing House Activities (pt)

6021@
National Commercial Banks

     Commercial Banks
Commercial Banking (pt)

     Credit Card Issuing
Credit Card Issuing (pt)

     Trust Services
Trust, Fiduciary and Custody Activities (pt)

6022@
State Commercial Banks

     Commercial Banks
Commercial Banking (pt)

     Credit Card Issuing
Credit Card Issuing (pt)

     Trust Services
Trust, Fiduciary and Custody Activities (pt)

6029@
Commercial Banks, NEC
Commercial Banking (pt)

6035@
Savings Institutions, Federally Chartered
Savings Institutions (pt)

6036@
Savings Institutions, Not Federally Chartered
Savings Institutions (pt)

6061@
Credit Unions, Federally Chartered
Credit Unions (pt)

6062@
Credit Unions, Not Federally Chartered
Credit Unions (pt)

6081@
Branches and Agencies of Foreign Banks

     International Trade Financing
International Trade Financing (pt)

     Branches of Foreign Banks
Commercial Banking (pt)

     Agencies of Foreign Banks
All Other Non-Depository Credit Intermediation (pt)

6082@
Foreign Trade and International Banking Institutions
International Trade Financing (pt)

6091@
Nondeposit Trust Facilities
Trust, Fiduciary, and Custody Activities (pt)

6099@
Functions Related to Deposit Banking, NEC

     Money Order Issuance
Other Depository Credit Intermediation (pt)

     Clearinghouses
Financial Transactions Processing, Reserve, and Clearing House Activities (pt)

     Foreign Currency Exchange
Commodity Contracts Dealing (pt)

     Escrow and Fiduciary Agencies
Trust, Fiduciary, and Custody Activities (pt)

     Deposit Brokers
Miscellaneous Financial Investment Activities (pt)

     Other
Other Activities Related to Credit Intermediation (pt)

6111@
Federal and Federally Sponsored Credit Agencies

     Trade Banks
International Trade Financing (pt)

     Secondary Market Financing
Secondary Market Financing

     Other
All Other Non-Depository Credit Intermediation (pt)

6141@
Personal Credit Institutions

     Credit Card Issuing
Credit Card Issuing (pt)

     Installment Sales Financing
Sales Financing and Finance Leasing (pt)

     Other
Consumer Credit (pt)

6153@
Short-Term Business Institutions, Except Agricultural

     Business Sales Finance
Sales Financing and Finance Leasing (pt)

     Credit Card Service
Financial Transactions Processing, Reserve, and Clearing House Activities (pt)

     Other
All Other Non-Depository Credit Intermediation (pt)

6159@
Miscellaneous Business Credit Institutions

     Finance Leasing
Sales Financing and Finance Leasing

     Trade Banks
International Trade Financing (pt)

     Other
All Other Non-Depository Credit Intermediation (pt)

6162@
Mortgage Bankers and Loan Correspondents

     Mortgage Bankers and Originators
Real Estate Credit

     Mortgage Servicing
Other Activities Related to Credit Intermediation (pt) 

6163
Loan Brokers
Mortgage and Other Loan Brokers 

6211@
Security Brokers, Dealers, and Flotation Companies

     Security Dealers and Underwriters
Investment Banking and Securities Dealing (pt)

     Security Brokers
Securities Brokerage

     Dealers, Except Securities and Commodities
Miscellaneous Intermediation (pt)

     Other
Miscellaneous Financial Investment Activities (pt)

6221@
Commodity Contracts Brokers and Dealers

     Commodity Dealers
Commodity Contracts Dealing (pt)

     Commodity Brokers
Commodity Brokerage (pt)

6231
Security and Commodity Exchanges
Securities and Commodity Exchanges

6282@
Investment Advice

     Portfolio Managers
Portfolio Management (pt)

     Other
Investment Advice (pt)

6289@
Services Allied With the Exchange of Securities or
Commodities, NEC

     Securities Custodians
Trust, Fiduciary, and Custody Activities (pt)

     Other
Miscellaneous Financial Investment Activities (pt)

6311@
Life Insurance

     Life Insurers-Direct
Direct Life Insurance Carriers (pt)

     Reinsurance Carriers, Life
Reinsurance Carriers (pt)

6321@
Accident and Health Insurance

     Health and Medical Insurers-Direct
Health and Medical Insurance Carriers (pt)

     Reinsurance Carriers, Accident and Health
Reinsurance Carriers (pt)

     Self Insurers
Insurance and Other Employee Benefit Funds (pt)

6324@
Hospital and Medical Service Plans

     Health and Medical Insurers-Direct
Health and Medical Insurance Carriers (pt)

     Reinsurance Carriers, Health and Medical
Reinsurance Carriers (pt)

     Self Insurers
Insurance and Other Employee Benefit Funds (pt)

6331@
Fire, Marine, and Casualty Insurance

     Fire, Marine, and Casualty Insurers-Direct
Property and Casualty Insurance Carriers (pt)

     Reinsurance Carriers, Fire, Marine, and Casualty
Reinsurance Carriers (pt)

     Self Insurers
Insurance and Other Employee Benefit Funds (pt)

6351@
Surety Insurance

     Financial Responsibility Insurers-Direct
Property and Casualty Insurance Carriers (pt)

     Reinsurance Carriers, Financial Responsibility
Reinsurance Carriers (pt)

6361@
Title Insurance

     Title Insurers-Direct
Title Insurance Carriers (pt)

     Reinsurance Carriers, Title
Reinsurance Carriers (pt)

6371@
Pension, Health, and Welfare Funds

     Managers
Portfolio Management

     Administrators
Third Party Administration for Insurance and Pension Funds (pt)

     Pension Funds
Pension Funds (pt)

     Health and Welfare Funds
Health and Welfare Funds (pt)

6399
Insurance Carriers, NEC
Other Direct Non-Life Insurance Carriers 

6411@
Insurance Agents, Brokers, and Service

     Insurance Agents and Brokers
Insurance Agencies and Brokerages

     Claim Adjusters
Claims Adjusters

     Claim Processors
Third Party Administrators for Insurance and Pension Funds (pt)

     Other
All Other Activities Related to Insurance

6712
Offices of Bank Holding Companies
Bank Holding Companies

6719
Offices of Holding Companies, NEC
Other Holding Companies

6722
Management Investment Offices, Open-End
Open-End Investment Funds

6726
Unit Investment Trusts, Face-Amount Certificate
Offices, and Closed-End Management Investment
Offices
Other Financial Vehicles 

6732
Educational, Religious and Charitable Trusts
Grantmaking Foundations

6733@
Trusts, Except Educational, Religious, and Charitable

     Managers
Portfolio Management (pt)

     Administrators of Private Estates
Trust, Fiduciary, and Custody Services (pt)

     Vacation Funds for Employees
Insurance and Other Employee Benefit Funds (pt)

     Personal Trusts, Estates, and Agency Accounts
Personal Trusts, Estates, and Agency Accounts (pt)

6792@
Oil Royalty Traders

     Investors on Own Account
Miscellaneous Financial Investment Activities (pt) 

     Oil Royalty Trading Companies
Owners and Lessors of Other Non-Financial Assets

6794
Patent Owners and Lessors
Owners and Lessors of Other Non-Financial Assets

6798
Real Estate Investment Trusts
Mortgage Investment Funds

6799@
Investors, NEC

     Venture Capital Companies
Miscellaneous Intermediation (pt)

     Pool Operators
Portfolio Management (pt)

     Other
Miscellaneous Financial Investment Activities (pt)

7389
Business Services, NEC

     Credit Card Service
Financial Transactions Processing, Reserve, and Clearing House  Activities (pt)

     Other Business Services
Included in Other Subsectors of NAICS

Overview of the U.S. Classification Structure

  1987 SIC Major Group 60, Depository Institutions, differs from industry group Depository
Credit Intermediation in that the new industry group does not include the central bank, which is
in a subsector of its own; industries are no longer defined by charter; and a number of activities
are broken out as industries and classified in other industry groups or subsectors trust,
fiduciary, and custody services, for example.  In addition, activities such as clearing houses and
reserve services, which were part of 1987 SIC Major Group 60, are classified to the new
industry group Activities Related to Credit Intermediation.
  1987 SIC Major Group 61, Non-Depository Credit Institutions, is similar in coverage to the
new industry group Non-Depository Credit Intermediation, but, in the latter,  industry detail is
based on production differences in granting particular types of credit, not on class of customers
or on the extent of government sponsorship.  In particular, the activities previously included in
1987 Industry Group 615, Business Credit Institutions, are now more clearly specified.  In
addition, NAICS recognizes the lending activities of pawnbrokers in this subsector;
pawnbrokers were classified in 1987 SIC 5932, Used Merchandise Stores.  In addition, activities
such as mortgage brokers and financial transactions processing are classified to the new industry
group Activities Related to Credit Intermediation.
  1987 SIC Major Group 62, Security and Commodity Brokers, Dealers, Exchanges, and
Services, differs from NAICS subsector Securities, Commodity Contracts, and Other
Intermediation and Related Activities in that the NAICS subsector separates brokerage from
underwriting and dealing; it more clearly delineates the distinction between portfolio
management (classified here) and the assets under management (excluded from NAICS but
shown as U.S. detail); and it includes the trust, fiduciary, and custody activities of banks and
other financial institutions. 
  1987 SIC Major Groups 63, Insurance Carriers, and 64, Insurance Agents, Brokers, and
Service, differ from NAICS subsector Insurance Carriers and Related Activities in that in
NAICS, reinsurance carriers are separated from direct insurance carriers; pension and other
employee benefit funds (now in the U.S. subsector Funds, Trusts, and Other Financial Vehicles)
are no longer included; and separate industries are defined for several insurance-related services.
  1987 Major Group 67, Holding and Other Investment Offices, differs from the U.S.-only
subsector Funds, Trusts, and Other Financial Vehicles, in that the latter includes 1987 SIC 6371,
Pension, Health and Welfare Funds, but excludes 1987 SIC 6732, Educational, Religious, and
Charitable Trusts; 1987 SIC 6792, Oil Royalty Traders; 1987 SIC 6794, Patent Owners and
Lessors; and 1987 SIC 6799, Investors NEC.  1987 SIC 6732 has been transferred to the
Religious, Grantmaking, Civic, and Other Membership Association subsector on the grounds
that they are essentially treasury establishments supporting the charitable purposes of the
entities that own the assets under management.  Part of 1987 SIC 6792, Oil Royalty Traders,
and part of 1987 SIC 6794, Patent Owners and Lessors, have been transferred to a new
subsector.  The remainder of 1987 SIC 6792, Oil Royalty Traders, and 1987 SIC 6799,
Investors, NEC, are classified in Miscellaneous Financial Investment Activities.
  

Description of Changes to the U.S. System

  There are 44 industries in this sector, of which 23 are new, 14 are revised, and 7 remain the
same as in the 1987 SIC.
  1.   Monetary Authorities - Central Bank: There were two industries in this subsector for
1987.  One, 1987 SIC 6011, Federal Reserve Banks, remains in this subsector; the other, 1987
SIC 6019, Central Reserve Depository Institutions, NEC, is moved to Credit Intermediation and
Related Activities.
  2.   Credit Intermediation and Related Activities: Eight new industries are added to the 1997
industry structure for this subsector.  New industries are the following:
  Other Depository Credit Intermediation from part of 1987 SIC 6099, Functions Related to
Depository Banking, NEC.
  Credit Card Issuing from part of 1987 SIC 6021, National Commercial Banks; part of 1987
SIC 6022, State Commercial Banks; and part of 1987 SIC 6141, Personal Credit Institutions.
  Sales Financing and Finance Leasing from part of 1987 SIC 6141, Personal Credit
Institutions'part of 1987 SIC 6153, Short-Term Business Credit Institutions, Except
Agricultural; and part of 1987 SIC 6159, Miscellaneous Business Credit Institutions.
  International Trade Financing from part of 1987 SIC 6081, Branches and Agencies of
Foreign Banks; from 1987 SIC 6082, Foreign Trade and International Banking Institutions; part
of 1987 SIC 6111, Federal and Federally-Sponsored Credit Agencies; and part of 1987 SIC
6159, Miscellaneous Business Credit Institutions.

  Secondary Market Financing from part of 1987 SIC 6111, Federal and Federally-Sponsored
Credit Agencies.
  All Other Non-Depository Credit Intermediation from part of 1987 SIC 5932, Used
Merchandise Stores; part of 1987 SIC 6081, Branches and Agencies of Foreign Banks; part of
1987 SIC 6111, Federal and Federally-Sponsored Credit Agencies; part of 1987 SIC 6153,
Short-Term Business Credit Institutions, Except Agriculture; and part of 1987 SIC 6159,
Miscellaneous Business Credit Institutions.
  Financial Transactions Processing, Reserve, and Clearing House Activities from 1987 SIC
6019, Central Reserve Depository Institutions, NEC; part of 1987 SIC 6099, Functions Related
to Depository Banking, NEC; part of 1987 SIC 6153, Short-Term Business Credit Institutions,
Except Agricultural; and part of 1987 SIC 7389, Business Services, NEC.
  Other Activities Related to Credit Intermediation from part of 1987 SIC 6099, Functions
Related to Depository Banking, NEC, and part of 1987 SIC 6162, Mortgage Bankers and Loan
Correspondents.
  Five industries are revised for the 1997 industry structure for this subsector.  The revised
industries are the following:
  Commercial Banking revised from part of 1987 SIC 6021, National Commercial Banks; part
of 1987 SIC 6022, State Commercial Banks; 1987 SIC 6029, Commercial Banks, NEC; and
part of 1987 SIC 6081, Branches and Agencies of Foreign Banks.
  Savings Institutions revised to include 1987 SIC 6035, Savings Institutions, Federally
Chartered, and 1987 SIC 6036, Savings Institutions, Not Federally Chartered.
  Credit Unions revised to include 1987 SIC 6061, Credit Unions, Federally Chartered, and
1987 SIC 6062, Credit Unions, Not Federally Chartered.
  Consumer Credit revised to include part of 1987 SIC 6141, Personal Credit Institutions.
  Real Estate Credit revised from part of 1987 SIC 6162, Mortgage Bankers and Loan
Correspondents.
  The number of Credit Intermediation and Related Activities industries decreased from 18 in
1987 to 14 in 1997.  For time series linkage, there is one 1987 industry that is comparable
within 3 percent of the 1997 industry.
  3.   Securities, Commodity Contracts, and Other Intermediation and Related Activities:
Seven new industries are added to the 1997 industry structure for this subsector.  New industries
are the following:
  Investment Banking and Securities Dealing from part of 1987 SIC 6211, Security Brokers,
Dealers, and Flotation Companies.
  Securities Brokerage from part of 1987 SIC 6211, Security Brokers, Dealers, and Flotation
Companies.
  Commodity Contracts Dealing from part of 1987 SIC 6099, Functions Related to
Depository Banking, NEC, and part of 1987 SIC 6221, Commodity Contracts Brokers and
Dealers.
  Commodity Brokerage from part of 1987 SIC 6221, Commodity Contracts Brokers and
Dealers.
  Miscellaneous Intermediation from part of 1987 SIC 6211, Security Brokers, Dealers, and
Flotation Companies; and part of 1987 SIC 6799, Investors, NEC.
  Portfolio Management from part of 1987 SIC 6282, Investment Advice; part of 1987 SIC
6371, Pension, Health, and Welfare Funds; part of 1987 SIC 6733, Trusts, Except Educational,
Religious, and Charitable; and part of 1987 SIC 6799, Investors, NEC.
  Trust, Fiduciary and Custody Activities from part of 1987 SIC 6021, National Commercial
Banks; part of 1987 SIC 6022, State Commercial Banks; 1987 SIC 6091, Non-deposit Trust
Facilities; part of 1987 SIC 6099, Functions Related to Depository Banking, NEC; part of 1987
SIC 6289, Services Allied With the Exchange of Securities or Commodities, NEC; and part of
1987 SIC 6733, Trusts, Except Educational, Religious, and Charitable.
  Two industries are revised for the 1997 industry structure for this subsector.  The revised
industries are the following:
  Investment Advice revised to include part of 1987 SIC 6282, Investment Advice.
  Miscellaneous Financial Investment Activities revised to include part of 1987 SIC 6099,
Functions Related to Depository Banking, NEC; part of 1987 SIC 6211, Security Brokers,
Dealers, and Flotation Companies; part of 1987 SIC 6289, Services Allied With the Exchange
of Securities or Commodities, NEC; part of  1987 SIC 6792, Oil Royalty Traders; and part of
1987 SIC 6799, Investors, NEC.
  The number of Securities, Commodity Contracts, and Other Intermediation and Related
Activities industries increased from 5 in 1987 to 10 in 1997.  For time series linkage, one 1987
industry is comparable within 3 percent of the 1997 industry.
  4.   Insurance Carriers and Related Activities:  Four new industries are added to the 1997
industry structure for this subsector.  New industries are the following:
  Reinsurance Carriers from part of 1987 SIC 6311, Life Insurance; part of 1987 SIC 6321,
Accident and Health Insurance; part of 1987 SIC 6324, Hospital and Medical Service Plans;
part of 1987 SIC 6331, Fire, Marine, and Casualty Insurance; part of 1987 SIC 6351, Surety
Insurance; and part of 1987 SIC 6361, Title Insurance.
  Claims Adjusters from part of 1987 SIC 6411, Insurance Agents, Brokers, and Service.
  Third Party Administrators for Insurance and Pension funds from part of 1987 SIC 6371,
Pension, Health, and Welfare Funds, and part of 1987 SIC 6411, Insurance Agents, Brokers and
Service.
  All Other Activities Related to Insurance from part of 1987 SIC 6411, Insurance Agents,
Brokers and Service.
  Five industries are revised for the 1997 industry structure for this subsector.  The revised
industries are the following:
  Direct Life Insurance Carriers revised to include part of 1987 SIC 6311, Life Insurance, and
part of 1987 SIC 6321, Accident and Health Insurance.
  Property and Casualty Insurance Carriers revised to include part of 1987 SIC 6331, Fire,
Marine, and Casualty Insurance, and part of 1987 SIC 6351, Surety Insurance.
  Health and Medical Insurance Carriers revised to include part of 1987 SIC 6324, Hospital
and Medical Service Plans, and part of 1987 SIC 6321, Accident and Health Insurance.
  Title Insurance Carriers revised to include part of 1987 SIC 6361, Title Insurance.
  Insurance Agencies and Brokerages revised to include part of 1987 SIC 6411, Insurance
Agents, Brokers and Service.
  The number of Insurance Carriers and Related Activities industries increased from 9 in 1987
to 10 in 1997.  For time series linkage, there is one 1987 industry that is comparable within 3
percent of the 1997 industry.
  5.   Funds, Trusts, and Other Financial Vehicles: Four new industries are added to the 1997
industry structure for this (U.S. only) subsector.  New industries are the following:
  Pension Funds from part of 1987 SIC 6371, Pension, Health, and Welfare Funds.
  Health and Welfare Funds from part of 1987 SIC 6371, Pension, Health, and Welfare Funds.
  Insurance Funds and Other Employee Benefit Funds from part of 1987 SIC 6321, Accident
and Health Insurance; part of 1987 SIC 6324, Hospital and Medical Service Plans; part of 1987
SIC 6331, Fire, Marine, and Casualty Insurance; and part of 1987 SIC 6733, Trusts, Except
Educational, Religious, and Charitable.
  Personal Trusts, Estates, and Agency Accounts from part of 1987 SIC 6733, Trusts, Except
Educational, Religious, and Charitable.
  Two industries were revised for 1987.  The revised industries are as follows:
  Financial Holding Companies from 1987 SIC 6712, Offices of Bank Holding Companies
and part of 1987 SIC 6719, Offices of Holding Companies, NEC.
  Managing Holding Companies from part of 1987 SIC 6719, Offices of Holding Companies,
NEC.
  The number of Funds, Trusts, and Other Financial Vehicles industries decreased from 10 in
1987 to nine in 1997.  For time series linkage, four 1987 industries are comparable within 3
percent of the 1997 industries.
  For time series linkage, 10 of the 43 1987 industries are comparable within 3 percent of the
1997 industries.  Nine of the 44 1997 industries are included in the subsector Funds, Trusts, and
Other Financial Vehicles.