July 29, 2020
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 2020 isscheduled to be implemented in September and data from the first quarter of 2005 onward will beupdated accordingly. This document outlines the key points of the revision currently planned, aswell as their effect on outstanding figures in the FFA (tentative figures for end-March 2019).
― 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 (2nd Quarter 2020,Preliminary Figures)" and the associated document, both of which are scheduled to bereleased on September 18.
(1) "Outward investment in securities" held by "Households"(a) Revision
In estimating the amount outstanding of "Outward investment in securities" held by"Households," the Bank used data for the following portfolio investment amounts (of Japan'sexternal assets) recorded in the Balance of Payments Statistics and the International Investment
Position of Japan: the amount invested by trust accounts in the holdings of "Other financial
corporations," and the majority of investment amounts held by "Others." Specifically, in the FFA,
these amounts have been regarded as investment amounts by "Private nonfinancial corporations"and "Households," and allocated to one of the two sectors according to the ratio between them ineach type of domestic portfolio investments ("Debt securities," "Equity," and "Investment trust
beneficiary certificates"). The sum of the allocated amounts and outstanding securities obtained

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from the National Tax Agency's data on foreign asset statements has been the amount outstandingof "Outward investment in securities" held by "Households."
With the planned revision, instead of allocating amounts as above, the Bank will accumulate datautilizing, for example, information on assets in custody held by major securities companies forhouseholds, on foreign debt securities, foreign equities, and foreign investment trusts.
Accordingly, the amount outstanding of "Outward investment in securities" held by"Households" will be the sum of the amount estimated using this new method and outstanding
securities obtained from the National Tax Agency's data on foreign asset statements.
(b) Effect
The effect of the above revision on the figure for "Outward investment in securities" held by"Households" for end-March 2019 is likely to be marginal.
Change in amount outstanding: "Outward investment in securities" held by "Households"(end-March 2019)
Sector;Transaction item

Assets/liabilities

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

outstanding

20.2 tril. yen

21.3 tril. yen+1.1 tril. yen

Households;
Outward investment

Assetsin securities(2) "Consumer credit" of "Finance companies"(a) Revision
Regarding "Consumer credit" (consumer finance and sales credit to consumers) of "Financecompanies," the Bank has estimated outstanding credit of money lending companies by (1)classifying money lending companies into four business types,1 and (2) for each type, expanding
consumer credit outstanding of major companies by applying the ratio of total operating loans
outstanding, which are obtained from statistics covering all companies in the type, to aggregate
operating loans outstanding of major companies, which are obtained from their financialstatements.
With the planned revision, the Bank will change this estimation method to one which accumulates
data by consumer finance and sales credit to consumers, while adding the following as source
data: statistics on sales credit business, and financial statements of major companies engaged inconsumer credit.

1 The four business types are (1) money lending companies for consumers; (2) money lending companies
for businesses; (3) credit card companies, sales credit companies, money lending companies affiliated toretailers, and money lending companies affiliated to manufacturers; and (4) leasing companies.

2(b) EffectDue to the above revision, figures for "Consumer credit" on the asset side of "Finance companies"
and on the liability side of "Households" are likely to be revised upward.
Change in amount outstanding: "Consumer credit" (end-March 2019)
SectorAssets/liabilities

Finance companies
Households*

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

outstandingAssets

9.0 tril. yen

19.6 tril. yen+10.5 tril. yen

Liabilities

32.2 tril. yen

42.5 tril. yen+10.3 tril. yen*The change in the amount outstanding of "Households" includes the effects of revisions other than
the revision to "Finance companies."(3) Other key points of the 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. Below are the revisions that are currently assumed tohave a relatively large effect on figures.
("Unlisted shares" issued by "Private nonfinancial corporations")
In estimating the amount outstanding of "Unlisted shares" issued by "Private nonfinancialcorporations," the Bank utilizes data such as those on market value from the Annual Report on
National Accounts. With the planned revision, historical figures will be retroactively revised toreflect 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 relatedstatistics, figures for some transaction items of the sector "Overseas" will be revised from 2017
onward.

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)

Total financial assets

2,000

1,500

1,000500

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 ┛ 19Calendar year
(trillion yen)

Currency and deposits

1,200

1,000

800600400

Before retroactive revision
2000

After 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 ┛ 19

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 ┛ ┗ 1 8 ┛ 19

Calendar year4

(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 ┛ 19

Calendar year
(trillion yen)

Equity

300

250

200

150

100

Before retroactive revision500

After 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 ┛ 19

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

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 ┛ 19

Calendar year5(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 ┛ 19

Calendar year

Debt securities(trillion yen)100

806040

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 ┛ 19

Calendar year
(trillion yen)

Equity and investment fund shares

200

150

10050

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 ┛ 19

Calendar year6(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 revision2000┗ 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 ┛ 19

Calendar year
(trillion yen)

Currency and deposits

300

250

200150100Before retroactive revision500

After 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 ┛ 19

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 ┛ ┗ 1 8 ┛ 19

Calendar year7(3) Private nonfinancial corporations (outstanding financial assets) (continued)(trillion yen)

Equity500

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 ┛ ┗ 1 8 ┛ 19

Calendar year
(trillion yen)

Outward investment in securities

100

Before retroactive revision80

After retroactive revision

6040200┗ 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 ┛ 19

Calendar year8