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STATISTICS DEPARTMENT
MONEY AND BANKING STATISTICS AND
FINANCIAL ACCOUNTS SECTION
GUIDELINES
ON THE STATISTICAL CLASSIFICATION OF LOANS GRANTED BY MONETARY FINANCIAL INSTITUTIONSBASED ON “NACE REV. 2” OF THE EUROPEAN UNION
JANUARY 2010
1. INTRODUCTION
1.1 Scope
The Central Bank of Cyprus (“CBC”), issues the Guidelines on the Statistical Classification of Loans granted by Monetary Financial Institutions (“MFIs”) based on “NACE Rev. 2” of the European Union which replaced “NACE Rev.1.1”.
The purpose of these Guidelines is the implementation of the provisions of Regulation EC1893/2006 issued by the European Parliament and the Council, on 20 December, 2006 establishing the statistical classifications of economic activities “NACE Rev. 2” and amending Council Regulation 3037/90 as well as certain EC Regulations on specific statistical domains. The objective of this Regulation is the creation of common statistical standards that permit the production of harmonised data and their comparability not only at Community level but also at an international level since NACE classifications are directly linked to the International Standard Industrial Classification of all economic activities (ISIC) Rev.4, as adopted by the Statistical Commission of the United Nations.
1.2 NACE Characteristics
As a general rule, the main characteristics of the statistical classification of loans are the following:
(a) an exhaustive coverage of all loans;
(b) each loan can be classified only in one category of the classification (mutually exclusive categories); and
(c) the allocation to the various categories of the classification is ruled by consistent methodological principles.
1.3 Classification of economic activities
The basic criterion for the classification of loans, as required by NACE, is the economic activity of the borrower, unless the proprietor or a partner has borrowed on personal account, in which case the loan shall be classified under the section T “Private Ind
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