Counterparty breakdown by sector – definition of other financial corporations and non financial corporations

In line with the  Q&A 2018_4282  , counterparty breakdown in FINREP, described in the Annex V. Part 1, par. 35 (par. 42 in the version 2.7 of the reporting framework), is consistent with the classification in COREP. ECB Regulation 2013/33 is used in FINREP, as far as counterparty sector is concerned, only to define the ‘non-financial corporations’ which itself refers to the ESA-Regulation. In particular, under ESA-Regulation the ‘non-financial corporations sector consists of institutional units which are independent legal entities and market producers, and whose principal activity is the production of goods and non-financial services. The non-financial corporations sector also includes non-financial quasi-corporations’ (see paragraphs. 2.45 and 2.46 ESA-Regulation). Therefore, for FINREP purposes independent legal entities, as subsidiaries set up within non–financial group to issue debt instruments or to perform liquidity management activities within the group, shall be considered ‘non-financial corporations’ only if their principal activity as subsidiaries is the production of goods and non-financial services as defined in ESA-Regulation.