The aim of the statistics explained articles is to provide easy to understand background information on statistical concepts and methodologies.

 

What is an institutional sector?

Institutional sectors are a category in national accounts that brings together economic agents with similar economic behaviour. The economy of a country can be thought of as a system whereby economic agents (institutions and people) interact by exchanging and transferring goods, services and means of payment (e.g. cash) for the production and consumption of other goods and services.

What is an institutional sector?

 

What is a financial institution?

A financial institution is an entity whose main economic function is to channel or help channel funds from entities with savings to entities that need funds. In the euro area, banks are the main financial institution. 

What is a financial institution?

 

What is a monetary financial institution?

Monetary financial institutions include central banks and other monetary financial institutions. The latter comprises deposit-taking corporations other than central banks (commonly referred to as “banks”) and money market funds.

What is a monetary financial institution?

 

What is a non-monetary financial institution?

A non-monetary financial institution is an entity whose main economic function is to channel or help channel funds from savings-holding entities to entities that need funds to invest, but which are not authorised to receive deposits or do not receive close substitutes for deposits.

What is a non-monetary financial institution?

 

What is a financial instrument?

Financial instruments are financial assets and liabilities which are held by economic agents or generated in financial operations. Categorising financial instruments provides more structured information on the financial assets and liabilities of the various institutional sectors.

What is a financial instrument?