Economic Results of Financial Intermediation

Methodology

The publication contains selected fundamental indicators on financial intermediation. According to the CZ-NACE this publication contains data of division 65 (Financial intermediation, except insurance and pension funding), division 66 (insurance and pension funding, except compulsory social security) and division 67 (Activities auxiliary to financial intermediation).

The data result from the processing of five types of quarterly statistical questionnaires:

Pen 3a-04 – filled out by banking monetary institutions (CZ-NACE 65.1) which keep books in accordance with the chart of accounts for banks,
Pen 3b-04 – all businesses with their principal activity coming under CZ-NACE 65.2 (Other financial intermediation) and CZ-NACE 67 (Activities auxiliary to financial intermediation) are obliged to fill out this questionnaire. They keep the books in accordance with the chart of accounts for banks and mostly include investment companies and funds managed by the investment companies and also saving and credit cooperatives and licensed brokers,
Pen 3c-04 – all businesses with their principal activity coming under CZ-NACE 65.2 and CZ-NACE 67.2 are obliged to fill out this questionnaire. They use the chart of accounts for entrepreneurs and include financial leasing companies, persons registered by the Czech National Bank within Capital Market Supervision,
Poj 3a-04 – all businesses with their principal activity coming under CZ-NACE 66.01 and 66.03 are obliged to fill out this questionnaire. They keep books in accordance with the chart of accounts for insurance companies,
Poj 3b-04 – all businesses with their principal activity coming under CZ-NACE 66.02 are obliged to fill out this questionnaire. They keep books in accordance with the chart of account for banks.

If a business fails to submit the filled-in questionnaire for any reason, then the data for such a business are calculated by means of mathematical statistical methods, in which data they provided before or administrative data (e.g., on the number of employees) are used. Using expert guesses is permitted, where a business cannot provide a value of an indicator accurately according to the methodological notes attached to the questionnaire.

When current quarter data are processed, data for the previous period are corrected retroactively with regard to the questionnaires provided after the deadline for the previous quarter or to corrections submitted by reporting units. Hence, the data for the previous period may differ from those released before. Definitive corrections of quarterly data are carried out on the basis of comparisons with annual data reported on annual questionnaires Pen 5a-01 (banking monetary institutions), Pen 5b-01 and P 5-01 (non-banking monetary institutions), Poj 5a-01 (insurance companies) and Poj 5b-01 (pension funds). This implies that data for 2005 will be definitely corrected according to more exact annual data and will be used for corrections in the publication for the 4th quarter of 2006 to be brought out in April 2007. Besides, results obtained from annual questionnaires Pen 5a-01, Pen 5b-01, P 5-01, Poj 5a-01 and Poj 5b-01 are published in a separate publication.

Notes on the tables

The indicators on banking monetary institutions are listed in tables 1 to 4, on insurance companies in tables 5 to 11, on pension funds in tables 12 to 16, on non-banking monetary institutions in tables 17 to 20, on investment companies and funds in 21 to 24 and finally on financial leasing companies in tables 25 to 28.

In this publication, the following symbols are used:

“–“ – not available,
“0” – zero or negligible,
“.” – confidential,
“x” – cannot be displayed for logical reasons (e.g. the index exceeds 999.9).

Index – shows development in comparison with the correspond. period of the previous year (%).

The concept of natural person includes individuals (citizens) and self-employed persons (entrepreneurs, traders, free professions), not incorporated in the business register.

Table 1. Employees, wages

Average registered number of employees – all permanent and temporary employees (regardless of their nationality), who have contracts of employment with their employers (in cooperatives persons – members of the cooperative with contracts of employments, too) and receive wages from the employer for the work they do. It doesn’t matter, whether they are really present at work or not (e.g., for illness, holiday, military training, etc.).

Persons such as women on maternity and child-care leaves, apprentices and students on practice, persons working on the basis of contracts for work or fixed job contracts, etc. are not included here.

The average number of employees in actual persons is calculated as the arithmetic mean of average numbers of employees in individual months. Conversion to full-time equivalent persons is carried out for part-time employees working only occasionally at call and in case of employer’s need or carrying out collateral activity during labour relation at the same time.

Wages (excl. OPC – other personal costs) - both financial and non-financial remuneration (wages in kind) provided by employers to employees for work. They include scale wages and salaries, personal assessments, extra pays and supplementary charges and other similar pays, premiums and various remunerations, compensations for wages and salaries, remuneration for being on-call. Wages in kind also include the relevant share of the acquisition costs of motor vehicles provided to employees by employers for personal and business purposes. Wages also include remuneration for work paid, as decided by the employer, from disposable profits, remuneration fund or any other fund created from disposable profits. Other personal costs (OPC) are not included in wages. The wages are gross wages charged to be paid.

Other personal costs (OPC) – remunerations for work done on the basis of other than labour, service or member relationships to the employer. They mostly include remuneration for work done on the basis of other than contract of employment, remuneration based on copyright, severance payments, remuneration to board members (except for royalties paid from profits), remuneration to apprentices, etc.

Table 4. Basic data on tangible and intangible fixed assets

Acquisition of tangible and intangible fixed assets includes expenses spent during the reference quarter on the acquisition of these assets by

purchasing or by own activity

acquiring rights to intellectual creative activity results

free acquisition or transfer in accordance with legal regulations or by transfer from personal use to business use. The acquisition of tangible fixed assets includes expenses spent gradually or all at once regardless of whether the fixed asset was put in use in the quarter or not. The acquisition also includes the value of fixed assets financially leased (at the level of their initial value not repayments). (It refers to financial leasing contracts whose date of the beginning of maturity comes under reference quarter.) As the acquisition of tangible and intangible fixed assets is reported on the users’ side, companies engaged in financial leasing only report assets they use for their own activity. They do not report intangible and tangible fixed assets they purchased for the purpose of financial leasing (though they are owners of these assets as stipulated by the law).

Acquisition of intangible fixed assets, total – the data are drawn on from the turnover on the debit side in accounts that register the acquisition of intangible fixed assets (depending on the chart of accounts and book-keeping methods the reporting units use) or from the property account (if acquired assets were charged on the account directly). Given always is the sum total for turnover items charged in reference period (not total turnover from the beginning of year). The intangible fixed assets include:

expenses on starting a new business,
intangible results of research and similar activities not subjected to industrial and
other valuable rights
software,
know-how,
licences,
subjects of industrial rights and other results of intellectual creative activity, which
are subjects of valuable rights acquired and provided

Acquisition of tangible fixed assets, total - data are derived from totals on the debit side of accounts, which register purchases of tangible fixed assets (depending on the chart of accounts and the book-keeping methods the reporting units use), or from respective property accounts (if the purchased fixed assets was accounted directly on this account). Only the aggregate of items charged in the reference period is given (not totals from the beginning of year).

Land – the value of land whether or not built up is given.

Buildings, halls and constructions, machinery, instruments, equipment and inventory, means of transport – expenses mentioned in these lines include the acquisition of both new fixed assets (regardless of the country origin) and imported fixed assets used abroad already, regardless whether the fixed assets were imported by an investor or a third person (from the viewpoint of the Czech Republic this property is considered to be new). Costs associated with the implementation of technical improvement of an existing fixed asset or with a technical reclamation of land belong here as well. Expenses on the acquisition of buildings and constructions are shown exclusive of the value of land.

Sales and free transfers of tangible and intangible fixed assets – where tangible or intangible fixed assets were transferred to another user free, net book value (difference between acquisition costs and depreciation) was included here.