Description

In the case of Chile, Households’ financial wealth shows an important share of instruments held through non-bank financial intermediaries −namely pension funds, mutual fund shares and insurance life entitlements. In view of the above, the concern arises about determining the final instruments in which the sector materializes its investments and, thus, knowing their final exposure to risk and the different economic agents with which they interact. In this regard, this document presents the methodology used to distinguish the final instruments held by the sector and the results obtained, using as a main source of data the Households’ financial balance sheet published in the context of the National Accounts by Institutional Sectors, by the Central Bank of Chile. The results highlighted the increased in the share of debt securities in Households’ total financial wealth, that went up from 0,1% to 28,4% in average in the period 2003-2024, mainly via pension funds. Likewise, debt securities held by the sector were acquired mainly from financial institutions and non-financial corporations.