September 20, 2019
Bank of Japan
Research and Statistics Department

Retroactive Revision to the Flow of Funds Accounts
Once a year in principle, the Bank of Japan retroactively revises data for the Flow of Funds
Accounts (FFA), to reflect information updates, such as newly obtained source data andinstitutional changes, and to incorporate revised estimation methods. The retroactive revision of2019 was implemented on September 20, and due to this revision, data from the first quarter of2005 onward has been updated. To download the retroactively revised data, please use the BOJ
Time-Series Data Search. The 2019 revision highlights and their effect on outstanding figures inthe FFA are as follows (figures are for end-March 2018).*― Charts at the end of this document present figures before and after the retroactive revision
for the following outstanding amounts, which are assumed to be of great interest to users
in general: financial assets in the sector "Households," and financial assets and liabilities
in the sector "Private nonfinancial corporations."(1) Mutual aid insurance(a) Revision
Figures for the sector "Mutual aid insurance" are compiled using financial statements, etc. ofeach institution as source data. In calculating the market value of the outstanding investment
assets, the Bank previously made estimations mainly by multiplying the book value ofoutstanding amounts from financial statements by the market-to-book ratio of the market as awhole.
After the revision, the Bank uses market value figures directly for the applicable items
disclosed in each institution's annual report.
(b) Effects
Due to the above revision, on the asset side, figures for the transaction items "Central
government securities and FILP bonds" and "Listed shares" have been revised upward.

*This document is an updated version of the "Planned Retroactive Revision to the Flow of Funds
Accounts" released on August 13, 2019. The majority of the content is unchanged from the Augustversion.

1

Major changes in amounts outstanding: "Mutual aid insurance" (end-March 2018 figures)Transaction item

Assets/liabilities

Amount outstanding Amount outstanding Change in amount(before revision)(after revision)

outstanding

Assets41.3 tril. yen

46.8 tril. yen+5.5 tril. yen

Assets

1.1 tril. yen

1.5 tril. yen+0.4 tril. yen

Central government
securities and FILP
bonds
Listed shares(2) External securities issued by residents(a) Revision
As for the transaction item "External securities issued by residents," the total issuanceamount was obtained from debt securities statistics compiled by the Bank for International
Settlements (BIS). The issuance amounts by sector were recorded by (1) obtaining theamounts issued by financial institutions, etc. from information on issued bonds of individualentities (e.g., data compiled by the I-N Information Systems) and financial statements, etc.,
and then (2) estimating the amount issued by the sector "Private nonfinancial corporations" asresidual, by subtracting the amounts issued by other sectors from the total issuance amount.
With the revision, in estimating the amounts issued by financial institutions, etc., the Bank ofJapan has enhanced data accumulation by expanding source data from financial statements,etc. Moreover, the Bank has changed the method for estimating the amount issued by"Private nonfinancial corporations" to one using the BIS debt securities statistics (accordingly,
the total issuance amount is calculated by accumulating the amount of liabilities for eachsector).
(b) Effects
Due to the above revision, on the liability side, figures for sectors such as "Government
financial institutions," "Securities companies," and "Financial holding companies" have beenrevised upward, while figures for the sector "Private nonfinancial corporations" have beenrevised downward. On the asset side, figures for the sectors "Domestically licensed banks,""Financial institutions for agriculture, forestry, and fisheries," and "Financial institutions forsmall businesses" have been revised downward, reflecting the downward revision in the total
issuance amount of "External securities issued by residents."2

Major changes in amounts outstanding: "External securities issued by residents"(end-March 2018 figures)
SectorGovernment financial
institutions
Securities companies
Financial holding
companies
Private nonfinancial
corporations
Domestically licensed
banks

Assets/liabilities

Amount outstanding Amount outstanding Change in amount(before revision)(after revision)

outstanding

Liabilities

5.3 tril. yen

5.9 tril. yen+0.7 tril. yen

Liabilities

0.0 tril. yen

2.2 tril. yen+2.2 tril. yen

Liabilities

7.9 tril. yen

9.4 tril. yen+1.5 tril. yen

Liabilities

18.1 tril. yen

9.5 tril. yen-8.6 tril. yen

Assets

3.8 tril. yen

2.8 tril. yen-1.0 tril. yen

Assets

3.1 tril. yen

2.3 tril. yen-0.8 tril. yen

Assets

2.2 tril. yen

1.6 tril. yen-0.6 tril. yen

Financial institutions
for agriculture,forestry, and fisheries
Financial institutions
for small businesses(3) Other equity(a) RevisionAs for the transaction item "Other equity" (holdings in corporations other than joint-stock
corporations and in special corporations, etc.), the amounts issued by the sectors"Government financial institutions" and "Public nonfinancial corporations" are calculated byadding up figures obtained from each entity's financial statements, etc.
With the revision, the Bank has applied a refined method in using each entity's financialstatements, etc. when obtaining the amount issued by "Government financial institutions" andheld by "Central government" and the amount issued by "Public nonfinancial corporations"and held by "Local governments." This new method is in reference to a supporting table"Closing Stocks of Financial Assets and Liabilities" in the Annual Report on National
Accounts compiled by the Cabinet Office.
(b) Effects
Due to the above revision, on the asset side, figures for the sectors "Central government" and"Local governments" have been revised upward. On the liability side, figures for the sectors"Government financial institutions" and "Public nonfinancial corporations" have been revisedupward.
3Major changes in amounts outstanding: "Other equity" (end-March 2018 figures)
SectorAssets/liabilities

Central government
Local governments
Government
financial institutions
Public nonfinancial
corporations

Amount outstanding Amount outstanding Change in amount(before revision)(after revision)

outstanding

Assets29.5 tril. yen

44.4 tril. yen+14.9 tril. yen

Assets26.7 tril. yen

44.1 tril. yen+17.4 tril. yen

Liabilities

9.4 tril. yen

23.9 tril. yen+14.5 tril. yen

Liabilities

25.5 tril. yen

42.8 tril. yen+17.3 tril. yen(4) Public pensions(a) Revision
In the sector "Public pensions," investment assets held by the following institutions areestimated by adding up figures from financial statements of each institution: the Mutual AidAssociations of Local Government Employees, etc.; the Federation of National PublicService Personnel Mutual Aid Associations; and the Promotion and Mutual Aid Corporation
for Private Schools of Japan. As for the investment assets entrusted by these institutions tolife insurance companies or trust accounts, the Bank estimates the amounts subject to data
consolidation. Previously, the breakdown of the entrusted assets was estimated mainly bymultiplying the assets by the composition ratio that are assumed to be the same as the overall
asset-mix of the life insurance companies and of noncollectively managed trusts in the trust
accounts (the trusts are all assumed as designated noncollectively invested money trusts).
After the revision, since detailed data on each institution's investment status (e.g., complete
lists of securities holdings) have become available, the Bank uses these detailed data directlyin estimating the breakdown of investment assets.
(b) Effects
Due to the above revision, on the asset side, figures for transaction items such as thefollowing have been revised downward: "Loans by the nonfinancial sector"; "Central
government securities and FILP bonds"; "Local government securities"; and "Industrialsecurities." On the other hand, figures for the transaction items "Listed shares" and "Outward
investment in securities" have been revised upward.

4

Major changes in amounts outstanding: "Public pensions" (end-March 2018 figures)Transaction item

Assets/liabilities

Amount outstanding Amount outstanding Change in amount(before revision)(after revision)

outstanding

Assets

2.6 tril. yen

0.3 tril. yen-2.3 tril. yen

Assets46.4 tril. yen

44.2 tril. yen-2.2 tril. yen

Assets

6.8 tril. yen

5.7 tril. yen-1.2 tril. yen

Industrial securities

Assets

5.9 tril. yen

4.5 tril. yen-1.4 tril. yen

Listed shares

Assets51.5 tril. yen

53.1 tril. yen+1.7 tril. yen

Assets

71.0 tril. yen

81.3 tril. yen+10.4 tril. yen

Loans by thenonfinancial sector
Central government
securities and FILP
bonds
Local government
securities

Outward investment
in securities(5) Other highlights in the retroactive revision
Other than the above revisions in estimation methods, the Bank has also reflected newly
obtained source data as part of this revision. Below are the revisions that have had arelatively large effect on figures.
("Unlisted shares" issued by "Private nonfinancial corporations")
In estimating the amount outstanding for the transaction item "Unlisted shares" (liabilities)
issued by the sector "Private nonfinancial corporations," the Bank utilizes data such as thosein market value from the Annual Report on National Accounts. With the revision, newlyobtained source data have been reflected in the estimation, and as a result, historical figures
have been retroactively revised.
("Loans by public financial institutions")
As for the transaction item "Loans by public financial institutions," the Bank has expanded
part of the borrower information of financial institutions by utilizing financial statements, andas a result, the historical figures have been retroactively revised. In addition, the Bank has
made a partial revision to the data series for the breakdown of "Loans by public financial
institutions," which is released as reference data in the FFA.
("Pension entitlements" in "Defined benefit schemes" and "Corporate pensions")
The Bank has newly obtained data regarding firms' retirement benefits accounting for fiscal
2018, and incorporated them into the data for the transaction item "Pension entitlements" in5the sector "Defined benefit schemes," which is under the sector "Corporate pensions." As aresult, stock, flow, and reconciliation figures from the second quarter of 2018 onward havebeen revised for "Pension entitlements" (liabilities) in the above sectors as well as for"Pension entitlements" (assets) in the sector "Households."("Industrial securities")
The Bank has changed part of the source data for recording the total issuance amount of thetransaction item "Industrial securities" from the first quarter of 2012 onward. Specifically, thesource data for recording the amount of publicly placed straight bonds issued domestically bycorporations has been changed from the Issuing, Redemption and Outstanding Amounts ofBonds compiled by the Japan Securities Dealers Association to the Issuance, Redemption andOutstanding Balance by Bonds' Category released by the Japan Securities Depository Center,Inc.

Inquiries:
Financial Statistics Group, Economic Statistics Division, Research and Statistics Department
E-mail: post.rsd5@boj.or.jp

6(Reference)(1) Households (outstanding financial assets)(trillion yen)
2,000

Total financial assets

1,500

1,000

500

Before retroactive revision
After retroactive revision0┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year
(trillion yen)
1,000

Currency and deposits

800

600

400

200

Before retroactive revision
After retroactive revision0┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year
(trillion yen)

Debt securities

10080

60

40

20

Before retroactive revision
After retroactive revision0┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year7(1) Households (outstanding financial assets) (continued)

100(trillion yen)

Investment trust beneficiary certificates

8060

40

20

Before retroactive revision
After retroactive revision0┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year
250

Equity(trillion yen)

200

150

100

50

Before retroactive revision
After retroactive revision0┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year

(2) Private nonfinancial corporations (outstanding financial liabilities,
book value/face value basis)
1,000(trillion yen)

Total financial liabilities

800

600

400200

Before retroactive revision
After retroactive revision0┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year8

(2) Private nonfinancial corporations (outstanding financial liabilities,
book value/face value basis) (continued)
Borrowings(trillion yen)
500

400

300

200

100

Before retroactive revision
After retroactive revision0┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year

100

Debt securities(trillion yen)

8060

40

20

Before retroactive revision
After retroactive revision0┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year
(trillion yen)

Equity and investment fund shares

200

150

100

50

Before retroactive revision
After retroactive revision0┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year9(3) Private nonfinancial corporations (outstanding financial assets)

1,400

Total financial assets(trillion yen)

1,200
1,000
800
600
400
200

Before retroactive revision
After retroactive revision0┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year

300

(trillion yen)

Currency and deposits

250

200

150

100

50

Before retroactive revision
After retroactive revision0┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year
(trillion yen)

Debt securities

100

Before retroactive revision80

After retroactive revision60

40200┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year10

(3) Private nonfinancial corporations (outstanding financial assets) (continued)

500

Equity(trillion yen)
Before retroactive revision400

After retroactive revision

300

200

1000┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year

100(trillion yen)

Outward investment in securities

Before retroactive revision80

After retroactive revision60

40200┗ 0 5 ┛┗ 0 6 ┛┗ 0 7 ┛┗ 0 8 ┛┗ 0 9 ┛┗ 1 0 ┛┗ 1 1 ┛┗ 1 2 ┛┗ 1 3 ┛┗ 1 4 ┛┗ 1 5 ┛┗ 1 6 ┛┗ 1 7 ┛18

Calendar year

11