NEWS RELEASE NATIONAL ACCOUNTS 28 OCTOBER 2014

Statistics Iceland publishes now revised and improved financial accounts for the years 2003-2013, both stocks and flow data. According to the main result of financial accounts the total financial assets of domestic sectors accounted 1,289% of GDP at the end of 2013, while financial liabilities stood at 1,694% of GDP at the same time. Largest share of total financial liabilities are on the account of liabilities of financial corporations in winding-up proceedings towards the rest of the world. Financial assets of the rest of the world within the Icelandic economy counted 12,929 billion ISK at the end of 2013.

Financial assets and liabilities of non-financial corporations increased greatly from 2003-2007, however, for the past few years both assets and liabilities of these companies have reached some balance. Important part of these companies financing is through the issuing of shares and increased equity, hence, at the end of 2013, shares and other equity accounted 31% of their total liabilities.

Total financial assets of financial corporations counted fourteen times GDP at the end of 2007 when the peak of the financial system of Iceland was reached. At the end of 2013, financial assets as a share of GDP reached almost 800%. In comparison to other countries the financial system of Iceland is still large despite the financial collapse of 2008. However, by excluding the financial corporations in winding-up proceedings, it can be seen how much they affect the total financial system. Financial corporations in winding-up proceedings are published as a specific economic sub-sector within financial corporations in the Icelandic accounts since the share of their assets and liabilities is still high in comparison to other sectors and will continue to be so as long as the winding-up proceedings continues.

Holding companies are now published under the new sub-sector captive financial institutions. Hence, it will enable a more thorough analysis of one of the special characteristic of the Icelandic economy in the leading-up towards the financial crisis, which can be found by looking at these companies. Total financial assets of captive financial institutions at the end of 2013 reached 140% of GDP.

Total financial assets of pension funds stood at 2,702 billion ISK at the end of 2013, 144% of GDP. The pension system of Iceland is almost fully funded and the financial accounts shed a good light on the changes that have occurred within the funds´ balance sheets before and after the financial collapse.

Financial assets of households and NPISHs stood at 4,226 billion ISK at the end of 2013, while their liabilities stood at 1,745 billion at the same time. Most of their financial assets are on the account of households pension claims, a total of 3,188 billion ISK.

Next scheduled publication of financial accounts: March 2015. Further information on method and various classifications, see metadata.

Financial accounts 2003-2013 - Statistical Series

Statistics

Further Information

For further information please contact 528 1100 , email upplysingar@hagstofa.is

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