August 13, 2019
Bank of Japan
Research and Statistics Department

Planned 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 is scheduled to be implemented in September, and due to this revision, data from the firstquarter of 2005 onward will be updated. This document explains the highlights of the revision
planned currently, as well as their effect on outstanding figures in the FFA (tentative figures forend-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." At present, the extent to which thisrevision affects these outstanding amounts is likely to be marginal.
― Figures and charts in this document are tentative, and subject to additional revisions as aresult of, for example, reflecting newly obtained source data in the period ahead. For
details on the revision and revised figures, please refer to the "Flow of Funds Accounts(2nd Quarter 2019, Preliminary Figures)" and its associated document, both of which arescheduled to be released on September 20.
(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 has thus far made estimations mainly by multiplying the book value ofoutstanding amounts from financial statements by the market-to-book ratio of the market as awhole.
With the planned revision, the Bank will use market value figures directly for the applicable
items disclosed in each institution's annual report.

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(b) Effects
After the above revision, on the asset side, figures for the transaction items "Central
government securities and FILP bonds" and "Listed shares" are likely to be revised upward.
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 has been obtained from debt securities statistics compiled by the Bank forInternational Settlements (BIS). The issuance amounts by sector have been recorded by (1)obtaining the amounts issued by financial institutions, etc. from information on issued bondsof individual entities (e.g., data compiled by the I-N Information Systems) and financialstatements, etc., and then (2) estimating the amount issued by the sector "Private nonfinancial
corporations" as residual, by subtracting the amounts issued by other sectors from the total
issuance amount.
With the planned revision, in estimating the amounts issued by financial institutions, etc., theBank of Japan will enhance data accumulation by expanding source data from financialstatements, etc. Moreover, the Bank will change the method for estimating the amount issued
by "Private nonfinancial corporations" to one using the BIS debt securities statistics(accordingly, the total issuance amount will be calculated by accumulating the amount ofliabilities for each sector).
(b) Effects
After the above revision, on the liability side, figures for sectors such as "Government
financial institutions," "Securities companies," and "Financial holding companies" are likely
to be revised upward, while figures for the sector "Private nonfinancial corporations" arelikely to be revised downward. On the asset side, figures for the sectors "Domesticallylicensed banks," "Financial institutions for agriculture, forestry, and fisheries," and "Financial
institutions for small businesses" are likely to be 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)
SectorAssets/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

Government financial
institutions
Securities companies
Financial holding
companies
Private nonfinancial
corporations
Domestically licensed
banks
Financial institutions
for agriculture,
forestry, and fisheries
Financial institutions
for small businesses(3) Other equity(a) Revision
As 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 planned revision, the Bank will apply a refined method in using each entity's
financial statements, etc. when obtaining the amount issued by "Government financial
institutions" and held by "Central government" and the amount issued by "Public
nonfinancial corporations" and held by "Local governments." This new method is inreference to a supporting table "Closing Stocks of Financial Assets and Liabilities" in theAnnual Report on National Accounts compiled by the Cabinet Office.
(b) Effects
After the above revision, on the asset side, figures for the sectors "Central government" and"Local governments" are likely to be revised upward. On the liability side, figures for thesectors "Government financial institutions" and "Public nonfinancial corporations" are likely
to be revised upward.
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Major changes in amounts outstanding: "Other equity" (end-March 2018 figures)
SectorAssets/liabilities

Central government
Local governments

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

Government
financial institutions
Public nonfinancialcorporations(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 Aid
Associations 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. Thus far, the breakdown of the entrusted assets has been 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).
With the planned revision, since detailed data on each institution's investment status (e.g.,complete lists of securities holdings) have become available, the Bank will use these detailed
data directly in estimating the breakdown of investment assets.
(b) Effects
After the above revision, on the asset side, figures for transaction items such as the following
are likely to be revised downward: "Loans by the nonfinancial sector"; "Central government
securities and FILP bonds"; "Local government securities"; and "Industrial securities." On theother hand, figures for the transaction items "Listed shares" and "Outward investment insecurities" are likely to be revised upward.

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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 planned retroactive revision
Other than the above revisions in estimation methods, the Bank will also reflect newly
obtained source data as part of the planned revision. At the moment, such revision that will
have relatively large effects on figures is assumed to be as follows.
("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 planned revision,
historical figures will be retroactively revised to reflect the newly obtained source data.

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

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(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

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 year
(trillion yen)

Debt securities

10080604020

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 year6

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

100(trillion yen)

Investment trust beneficiary certificates

80

60

4020

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

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 year7(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)

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 ┛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 year8(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 revision

60

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

500

Equity(trillion yen)
Before retroactive revision400

After retroactive revision

300

2001000┗ 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 revision

60

40

200
┗ 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