Planned Periodic Revision of "L" -- Broadly-Defined Liquidity -- in the Money Stock Statistics
March 11, 2024
Research and Statistics Department
Bank of Japan
The Bank of Japan periodically (in principle every three years) reviews data sources and estimation methods for components of "L" -- broadly-defined liquidity -- in the Money Stock Statistics (MSS), and revises them if necessary.
As a result of the most recent review, a revision of "L" is scheduled to be implemented in April 2024, and data from April 2003 through February 2024 will be updated accordingly. Specifically, the year-on-year rates of change in "L" for these months are likely to be revised in the range of minus 0.1 to plus 0.1 percentage points.
Charts in the material below present figures that reflect the planned revision and comparisons of figures before and after the revision.
Data in the material are tentative, and subject to additional changes as a result of, for example, newly obtained source data in the period ahead. For data that reflect the revision and possible additional changes, please see "Preliminary figures for March 2024" of the MSS and the associated document, both of which are scheduled to be released on April 11.
Highlights of the planned revision are as follows.
1. Investment trusts
In the MSS, "investment trusts" is defined as principals of securities investment trusts and real estate investment trusts held by money holders. The amount of investment trusts held by money holders is calculated by deducting the portion held by non-money holders (financial institutions, etc.) from the total amount of investment trusts issued. The total amount of investment trusts issued is estimated based on Assets and Liabilities of Domestically Licensed Banks (Trust Accounts) and Real Estate Investment Trusts.
With the planned revision, the Bank will refine the method for calculating the amount of investment trusts held by non-money holders, which is deducted from the total amount issued in the compilation process.
Consequently, figures for "investment trusts" from April 2003 will be retroactively revised.
2. Foreign bonds
In the compilation method of "foreign bonds," the monthly investment amounts (flow data) of money holders in the Balance of Payments are cumulatively added to the amounts outstanding (stock data) of foreign bonds held by money holders estimated from the International Investment Position of Japan (end of every December). For calculating the amounts outstanding of money holders at year-end, the foreign bonds ("long-term debt securities" and "short-term debt securities") held by "other financial corporations" and "others" sectors in the International Investment Position of Japan are adjusted by deducting the portion of foreign bonds held by non-money holders.
With the planned revision, the Bank will refine the method for estimating the amounts outstanding of foreign bonds held by money holders at year-end by using more detailed information on foreign bond holdings by sector.
Consequently, figures for "foreign bonds" from January 2014 will be retroactively revised.
3. Bank debentures
The amount of bank debentures held by money holders is calculated by deducting the amount held by financial institutions from the total amount of bank debentures issued.
With the planned revision, the Bank will refine the data by reviewing data sources to estimate the amount held by financial institutions.
Consequently, figures for "bank debentures" from October 2007 will be retroactively revised.
Inquiries
Economic Statistics Division, Research and Statistics Department
E-mail: post.rsd5@boj.or.jp