The balance of payments is the statistical statement that systematically summarises, for a specific time period, the economic transactions of an economy with the rest of the world. The following definitions are based on the IMF Fifth Balance of Payments Manual (BPM5). The Balance of Payments is broken down into three broad sub-balances: the current account, the capital account, and the financial account.Financial account: The financial account is broken down into five basic components: direct investment, portfolio investment, financial derivatives, other investment, and reserve assets. Source: European Central Bank.