CLANAE K—Financial intermediation and other financial services

Where K sits

1. K Financial intermediation and other financial services

Contains 3 narrower codes

• 64 Financial intermediation and other financial services
• 65 Insurance services
• 66 Auxiliary services to financial and insurance activities

What K includes

• This category includes financial intermediation activities and other financial and/or complementary services.
• Financial intermediation refers to activities aimed at obtaining funds by incurring liabilities on one's own account in order to grant loans and/or acquire financial assets. Therefore, the term "intermediation" is used broadly, encompassing both the typical intermediary activity, without incorporating the resources into the entity's equity before transferring them to third parties, and those resources that do become part of the intermediary's equity. This is achieved through various techniques, such as: creating portfolios that mitigate risks, insuring assets and liabilities, assessing borrowers' creditworthiness, requiring loan guarantees, and maintaining reserves and a capital base to cover obligations, among others.
• However, there are other institutions that do not engage in intermediation activities, but whose activities, due to their nature (for example, frequency) and significance, are included as financial activities to be classified in this category. These include financial services (group 64.9) and auxiliary financial services (group 66.1). The main difference is that in the former, the entities carry out financial activities on their own account, while in the latter, the activities of managing and organizing stock markets and intermediation on behalf of third parties are included.
• Examples of activities included in:
• Financial services (group 64.9) • Open market agents • Credit card companies • Mortgage lenders • Lending institutions for housing and other economic activities • Factoring and securitization services Auxiliary financial services (group 66.1) • Currency exchange houses • Stockbrokers and brokerage firms • Credit rating agencies • Securities market and depositories • Financial brokers
• Sporadic or occasional financial intermediation is not included in this category. The same applies to raising funds for the borrower's own business, whether or not it is done regularly.

K in other systems