Measurement of Bank Output in the National Accounts

The measurement of the output of banks in current and constant prices as part of the National Accounts is a contentious topic, partly related to the conventions of the System of National Accounts. This paper provides an introduction to this topic and highlights the points of contention. Results from recent studies are presented that argue how bank output at current prices is overstated in the National Accounts, while real growth in Europe is biased relative to the United States, making cross-country growth comparisons hard to rely on.