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FINANCIAL GUARANTEE CORPORATIONS

Statistics Directorate    
Definition:
Financial guarantee corporations insure customers against losses to specified financial corporations or against financial loss on specific contracts.

Guarantors must establish financial capability for fulfilling potential obligations, and they must agree— usually for a fee—to insure that investors receive payment on securities or other financial contracts.

In addition, the financial guarantee corporations grouping includes specialized corporations that protect depositors and investors against the failure of individual financial corporations.

Context:
Distinguishing precisely between financial guarantee corporations and insurance corporations is difficult.

Guarantee corporations:

(1) do not have a definable pool of assets constituting insurance technical reserves,
(2) do not carry positions off balance sheet,
(3) may not be regulated as insurance corporations, and
(4) may be limited to specific types of financial transactions.

In borderline cases, these units should be classified as insurance corporations.

Source Publication:
Monetary and Financial Statistics Manual, IMF, Washington, 2000, para. 101
.

Hyperlink:
http://www.imf.org/external/pubs/ft/mfs/manual/index.htm

Statistical Theme: Financial statistics

Created on Tuesday, September 25, 2001

Last updated on Wednesday, March 05, 2003