May 28, 2021
Bank of Japan
Research and Statistics Department

Planned Retroactive Revision to the Flow of Funds Accounts
The Bank of Japan retroactively revises data for the Flow of Funds Accounts (FFA), in principle
once a year, to reflect information updates, such as newly obtained source data and institutionalchanges, and to incorporate revised estimation methods. The retroactive revision of 2021 isscheduled to be implemented in June and data from the first quarter of 2005 onward will be updated
accordingly. This document outlines the key points of the revision currently planned, as well as theireffect on outstanding and other figures in the FFA (tentative figures for end-March 2020).
― 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 greatest interest to users ingeneral: financial assets of "Households," and financial assets and liabilities of "Private
nonfinancial corporations." At present, the extent to which this revision affects theseoutstanding amounts is likely to be marginal.
― Figures and charts in this document are tentative, and subject to additional revisions as a resultof, for example, newly obtained source data in the period ahead. For details on the revisionand revised figures, please refer to the "Flow of Funds Accounts (1st Quarter 2021,
Preliminary Figures)" and the associated document, both of which are scheduled to bereleased on June 25.

(1) "Loans by private financial institutions" to "Households" (companies and government)(a) Revision"Loans by private financial institutions" to "Households" (companies and governments) areborrowings made by sole proprietorships. To date, this amount has been calculated by deducting
the borrowings from public financial institutions from the total value of borrowings by sole
proprietorships. The total value of borrowings by sole proprietorships has been estimated using
the average amount of borrowings per small enterprise (those with 5 employees or less), as aclose substitute for sole proprietorship in the Basic Survey on Small and Medium Enterprises
compiled by the Small and Medium Sized Enterprise Agency, multiplying it by the number of
establishments surveyed in the Economic Census by the Ministry of Internal Affairs andCommunications.
1With the planned revision, the Bank will replace this estimation method with a more precise one,
dividing the borrowings by sole proprietorships into two parts, those for "House and room
lending by households" and the other borrowings "Not for house and room lending." The two
separate calculations are then added together for the total. The former will have primary statistics
and will be relatively easy to measure the amount outstanding, while the latter will use data
provided by industry organizations to make an accurate estimation as a whole. More specifically,
the amount of borrowings for "House and room lending by households" will be calculated basedon the Bank of Japan's statistics of Loans and Bills Discounted by Sector and on the financial
statements of financial institutions if not covered by the statistics. The other borrowings, "Notfor house and room lending" from domestically licensed banks, etc., will be calculated bymultiplying the estimated average amount of borrowings per sole proprietorship having actual
borrowings in the Credit Risk Database of CRD Association, by the number of sole
proprietorships having actual borrowings estimated from the number of enterprises using credit
guarantees from Credit Guarantee Corporations.
The amount of borrowings from "Finance companies" will be more precisely estimated utilizing
the results of questionnaires conducted by the Japan Financial Services Association. The
estimation of the amount of borrowings from "Financial institutions for agriculture, forestry, andfisheries" will also be improved by using the financial statements of those institutions.
(b) EffectDue to the above revision, figures for "Loans by private financial institutions" to households(companies and governments) will be revised upward. Conversely, "Loans by private financial
institutions" to private nonfinancial corporations and "Housing loans" to households will berevised downward.

2

Change in amount outstanding: "Loans by private financial institutions" (end-March 2020)
Sector;Transaction item

Assets/liabilities

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

outstanding

Liabilities

43.8 tril. yen

54.0 tril. yen+10.2 tril. yen

Liabilities

333.3 tril. yen

329.0 tril. yen-4.3 tril. yen

Liabilities

193.3 tril. yen

185.9 tril. yen-7.4 tril. yen

Households;
Loans by private
financial institutions(to companies andgovernments)
Private nonfinancial
corporations;
Loans by private
financial institutions(to companies andgovernments)
Households;
Loans by private
financial institutions(Housing loans)(2) "Listed shares" held by "Securities companies"(a) Revision
The amount outstanding of "Listed shares" held by "Securities companies" has been estimatedby multiplying the total market value of listed shares issued with the holding ratio of securities
companies obtained from the Share Ownership Survey of Tokyo Stock Exchange, Inc. on aregistered shareholder basis.
With the planned revision, aiming in part to ensure the estimation is unaffected by the change ofownership registration in securities lending transactions, the Bank will revise this method. In the
new method, the sum of "Trading securities and other" (after netted out in assets and liabilities)
and "Investment securities" in the Composite Balance Sheet of Securities Firms and Number ofCustomer Accounts, etc. released by the Japan Securities Dealers Association are multiplied by
the ratio of listed shares among total securities held in data disclosed by major securities
companies.
(b) EffectDue to the above revision, figures for listed shares held by "Securities companies" will be revised
downward, whereas those held by financial institutions excluding securities companies,"Nonfinancial corporations," and "Households" will be revised upward.
3

Change in amount outstanding: "Listed shares" (end-March 2020)
SectorAssets/liabilities

Securities companies

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

outstanding

Assets11.1 tril. yen

4.0 tril. yen-7.1 tril. yen

Assets110.1 tril. yen

114.0 tril. yen+3.9 tril. yen

Assets124.1 tril. yen

125.1 tril. yen+1.0 tril. yen

Assets90.3 tril. yen

93.0 tril. yen+2.7 tril. yen

Financial institutions
excludingsecurities

companies
Nonfinancial
corporations
Households(3) "Installment credit (not included in consumer credit)" provided by "Private nonfinancial
corporations"(a) RevisionThis revision is concerning the treatment of sales credit on automobiles and mobile phones
provided by "Private nonfinancial corporations" (i.e., accounts receivable from the sales of these
items on their financial statements). In the FFA, while such credit is considered to be a part of"Installment credit (not included in consumer credit)," it is currently recorded under "Tradecredits and foreign trade credits" (assets and liabilities).
With the planned revision, sales credit provided by "Private nonfinancial corporations" will berecorded under "Installment credit (not included in consumer credit)." The amounts outstandingof such credit will be estimated using such source data as the financial statements of major
companies involved in the transactions of sales credit on automobiles and major mobile phonecompanies.
(b) EffectDue to the above revision, figures for "Trade credits and foreign trade credits" (assets andliabilities) of "Private nonfinancial corporations" will be revised downward, whereas those for"Installment credit (not included in consumer credit)" (assets) of "Private nonfinancial
corporations" will be revised upward. Accordingly, some other figures, mainly for "Installment
credit (not included in consumer credit)" (liabilities) of "Households," are also likely to be revised
upward.

4

Change in amount outstanding: "Installment credit (not included in consumer credit)" and"Trade credits and foreign trade credits" (end-March 2020)
Sector;Transaction item

Assets/liabilities

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

outstanding

Assets0.0 tril. yen

7.1 tril. yen+7.1 tril. yen

Liabilities

0.1 tril. yen

6.6 tril. yen+6.5 tril. yen

Assets

219.8 tril. yen

214.8 tril. yen-5.0 tril. yen

Liabilities

193.6 tril. yen

188.5 tril. yen-5.1 tril. yen

Private nonfinancial
corporations;
Installment credit(not included inconsumer credit)
Households;
Installment credit (notincluded in consumer
credit)Private nonfinancial
corporations;Tradecredits and foreign
trade credits
Private nonfinancial
corporations;Tradecredits and foreign
trade credits(4) "Outward investment in securities" held by "Financial institutions for agriculture,
forestry, and fisheries"(a) Revision
The holding amounts of "Outward investment in securities" by sector are estimated using theInternational Investment Position of Japan by holder and source data such as financial statements
of individual institutions. The amount unidentified from the source data calculated as residuals
is regarded as investment by "Private nonfinancial corporations" and allocated to the sector.
With the planned revision, the estimation for the amount of "Outward investment in securities"
held by "Financial institutions for agriculture, forestry, and fisheries" will be made more accurate
through the examination of source data.

5

(b) EffectDue to the above revision, figures for "Outward investment in securities" held by "Financial
institutions for agriculture, forestry, and fisheries" will be revised upward and those held by"Private nonfinancial corporations" will be revised downward.
Change in amount outstanding: "Outward investment in securities" (end-March 2020)
SectorAssets/liabilities

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

outstanding

Assets37.6 tril. yen

43.4 tril. yen+5.8 tril. yen

Assets22.3 tril. yen

15.8 tril. yen-6.4 tril. yen

Financial
institutions for
agriculture, forestry,
and fisheries
Private nonfinancial
corporations(5) "External securities issued by residents" of "Private nonfinancial corporations"(a) Revision
Regarding "External securities issued by residents," the amount issued by "Private nonfinancial
corporations" has been estimated using debt securities statistics compiled by the Bank forInternational Settlements as source data.
With the planned revision, the source data will be switched from the above to databases provided
by Dealogic, etc. Along with this change, the amount of "External securities issued by residents"
issued by "Private nonfinancial corporations" will be calculated by adding up the amounts
outstanding of individual external securities issued by this sector, which are obtained from the
new source data.
(b) EffectDue to the above revision, outstanding figures for "External securities issued by residents"(liabilities) of "Private nonfinancial corporations" are likely to be revised downward.

6

Change in amount outstanding: "External securities issued by residents" (end-March 2020)
SectorPrivate nonfinancial
corporations

Assets/liabilities

Liabilities

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

outstanding

11.6 tril. yen

8.7 tril. yen-2.9 tril. yen(6) Other key points of the retroactive revision
Other than the above revisions in estimation methods, the Bank will reflect newly obtained source
data as part of the planned revision; in this revision, it also plans to revise methods for estimating
certain transaction amounts, while this will not affect any outstanding figures. Below are thehighlights of such revisions currently planned.
"Unlisted shares" issued by "Private nonfinancial corporations"
In estimating the amount outstanding of "Unlisted shares" issued by "Private nonfinancial
corporations," the Bank makes use of data such as those on market value from the Annual Reporton National Accounts. With the planned revision, historical figures will be retroactively revised
to reflect the newly obtained source data.
Reflecting the retroactive revision of the Balance of Payments related statistics
As a result of incorporating the retroactively revised data from the Balance of Payments related
statistics, figures for some transaction items of the sector "Overseas" will be revised from 2018
onward.
Transaction amounts of "Outward investment in securities" (assets) of "Public pensions" and"Corporate pensions" (specifically, "Defined benefit schemes")
Regarding "Public pensions" and "Corporate pensions" ("Defined benefit schemes"), thetransaction amount of "Outward investment in securities" (assets) has been calculated bydeducting the estimated reconciliation amount (capital gains or losses) from the quarter-onquarter change in the amount outstanding of the sector's holdings.
With the planned revision, the Bank will refine the estimation of the reconciliation amounts(capital gains or losses) by using such source data as information on income gains for a major
institution. Due to the revision, figures for the transaction amount of "Outward investment insecurities" (assets) are likely to be revised upward for "Public pensions" and "Corporate
pensions" ("Defined benefit schemes"), whereas they are likely to be revised downward for"Private nonfinancial corporations." This revision will not affect any outstanding figures.
7

Transaction amount of "Investment trust beneficiary certificates" (liabilities) of "Securities
investment trusts" (specifically, "Stock investment trusts")
The transaction amount of "Investment trust beneficiary certificates" on the liability side of the"Securities investment trusts" ("Stock investment trusts") has been calculated by using theestimated amounts of the reinvested earnings from income gains and the distributions fromprincipal, etc. In the estimation, the Bank uses investment reports of major publicly offered stock
investment trusts excluding ETFs, and grosses them up to the total of all stock investment trusts.
With the planned revision, the Bank will incorporate new methods in estimating income gains ofprivately placed stock investment trusts and ETFs, both of which have been growing significantly
in terms of net asset value in recent years. In estimating income gains of privately placed stock
investment trusts, the Balance of Payments Statistics and the International Investment Positionof Japan will be introduced as new sources, recognizing that the majority of portfolios ofprivately placed stock investment trusts consist of outward investment in securities.
Due to the above revision, transactions of "Investment trust beneficiary certificates" on theliability side of the "Stock investment trusts" will be revised upward. This revision will not affectany outstanding figures.

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

8

(Reference)(1) Households (outstanding financial assets)(trillion yen)

Total financial assets

2,000

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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

Calendar year
(trillion yen)

Currency and deposits

1,200

1,000

800

600

400

Before retroactive revision200

0After retroactive revision┗ 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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

Calendar year
(trillion yen)

Debt securities

100

80

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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

Calendar year9

(1) Households (outstanding financial assets) (continued)
Investment trust beneficiary certificates(trillion yen)
100

80

60

40

Before retroactive revision20

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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

Calendar year
(trillion yen)

Equity

300

250

200

150

100

Before retroactive revision50

0After retroactive revision┗ 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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

Calendar year

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

Total financial liabilities

1,000

800

600

400

Before retroactive revision200

0After retroactive revision┗ 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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

Calendar year10

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

Borrowings

500

400

300

200

Before retroactive revision100

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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

Calendar year

Debt securities(trillion yen)
100

80

60

40

Before retroactive revision20

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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

Calendar year11(3) Private nonfinancial corporations (outstanding financial assets)(trillion yen)

Total financial assets

1,400
1,200
1,000
800
600
400

Before retroactive revision
After retroactive revision

2000┗ 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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

Calendar year
(trillion yen)

Currency and deposits

300

250

200

150

100

Before retroactive revision50

0After retroactive revision┗ 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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

Calendar year
(trillion yen)

Debt securities

100

Before retroactive revision80

After retroactive revision

60

40

20

0

┗ 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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

Calendar year12

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

Equity500

Before retroactive revision400

After retroactive revision

300

200

100

0

┗ 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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

Calendar year
(trillion yen)

Outward investment in securities

100

Before retroactive revision80

After retroactive revision

60

40

20

0

┗ 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 ┛ ┗ 1 8 ┛ ┗ 1 9 ┛ 20

Calendar year13