S.12 Financial and insurance corporations

The sector financial corporations consists of institutional units that are recognised as independent legal entities and which are market producers, and whose principal activity is the production of financial services. Financial institutions are all resident corporations and quasi-corporations whichare principally engaged in financial intermediation and/or in auxiliary financial activities.

The financial corporations sector also includes such head offices and non-profit institutions that primarily serve financial corporations (S.126). In addition, the sector financial corporations includes captive financial institutions if they are independent institutional units (S.127). Foreign controlled pure holding companies are also financial corporations regardless of the sector to which the units they own belong (S.127).

The head office activity implies supervision and control of a group of companies and refers to operative day-to-day management. Head offices are classified in the main sector (non-financial corporations, financial corporations) to which the majority of the corporations they control belong. Holding companies that are in no way engaged in the management of the corporation group but act only as entirely passive owners are treated as a rule as artificial subsidiaries (see Chapter 3.2). As an exception to this, foreign controlled pure holding companies are classified as financial corporations in sector S.127.

The sector does not include real estate companies or investment companies engaged in owning and operation of real estate. They belong to group S.111 Non-financial corporations. [0]

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