Council Regulation (EC) No 2533/98Show full title

SUBSECTOR: OTHER FINANCIAL INTERMEDIARIES, EXCEPT INSURANCE CORPORATIONS AND PENSION FUNDS (S.123)

2.53. Definition: The subsector other financial intermediaries except insurance corporations and pension funds (S.123) consists of all financial corporations and quasi-corporations which are principally engaged in financial intermediation by incurring liabilities in forms other than currency, deposits and/or close substitutes for deposits from institutional units other than monetary financial institutions, or insurance technical reserves.

2.54. Subsector S.123 includes various types of financial intermediaries especially those which are predominantly engaged in long-term financing. In most cases this predominant maturity forms the basis of a distinction from the other monetary financial institutions subsector. Based on the non-existence of liabilities in the form of insurance technical reserves, the borderline with the insurance corporations and pension funds subsector can be determined.

2.55. In particular, the following financial corporations and quasi-corporations are classified in subsector S.123 unless they are MFIs:

(a)

corporations engaged in financial leasing;

(b)

corporations engaged in hire purchase and the provision of personal or commercial finance;

(c)

corporations engaged in factoring;

(d)

security and derivative dealers (on own account);

(e)

specialised financial corporations such as venture and development capital companies, export/import financing companies;

(f)

financial vehicle corporations, created to be holders of securitised assets;

(g)

financial intermediaries which receive deposits and/or close substitutes for deposits from MFIs only;

(h)

holding corporations which only control and direct a group of subsidiaries principally engaged in financial intermediation and/or in auxiliary financial activities, but which are not financial corporations themselves.

2.56. Subsector S.123 does not include non-profit institutions recognised as independent legal entities serving other financial intermediaries except insurance corporations and pension funds, but not engaged in financial intermediation.