The Census and Statistics Department completed an exercise to implement the latest international guidelines on dealing with financial intermediation services provided by banks in the estimation of national accounts statistics of Hong Kong in mid-August 2005. The latest guidelines enable national accounts statistics to reflect in a better way the economic contribution of banks in facilitating the channeling of funds from units with surplus funds (e.g. depositors) to units with demand for funds (e.g. borrowers). As a result of this statistical development, GDP, GNP and BoP statistics were revised.

When banks provide financial intermediation services, they do not collect explicit service charges. Instead, they charge indirectly by lending at higher interest rates and borrowing at lower interest rates. Given the special nature of indirect charges on the financial intermediation services, both banks and their customers do not know the market value of the financial intermediation services produced and consumed. Under the latest international guidelines, the value of financial intermediation services consumed by different types of users (e.g. households, business establishments, non-residents) are indirectly measured using the "reference rate" method.

The following documents provide information about this statistical development.