Explanatory Notes - External business of banks operating in the UK: by region, country, currency and sector
OVERVIEW
AVAILABILITY
SOURCES
REVISIONS
DEFINITIONS
VALUATION
REGION AND COUNTRY DETAILS
FURTHER INFORMATION
This dataset covers the claims and liabilities of all banking offices located in the United Kingdom vis-à-vis all other countries. It can therefore provide a picture of financial flows between the UK banking system and the rest of the world. The amounts shown in these series are reported to the Bank of England in Sterling terms and translated into US dollars.
Data are collected and made available on a quarterly basis, with a lag of approximately one quarter. The data are available in the form of a Statistical Release, in addition to their availability on the Statistical Interactive Database and their publication in tables C3.1, C3.2 and C3.3 of Monetary and Financial Statistics (BankStats). The published schedule of releases is available here.
The dataset is available from Q3 1986.
These data are provided to the Bank of International Settlements (BIS), which combines them with the statistics of other reporting countries to produce a worldwide view of locational claims. These data are available for all reporting countries on the BIS website at www.bis.org/statistics/bankstats.htm.
Data are collected from all UK-resident banks with non-resident business in excess of £300 million on the relevant side of the balance sheet. Banks report directly to the Bank of England on Forms CC and CL.
All data are subject to revision if and when new data become available. For more information on revisions practices see the Explanatory Note on revisions, available here.
Amounts outstanding comprise gross liabilities to, and claims on, non-resident banks and other non-resident customers as recorded in the reporting institutions' books at the close of business on the last working day of each calendar quarter. A large part of these assets and liabilities are denominated in US dollars, and in order to reduce distortion in comparisons caused by fluctuations in exchange rates between reporting dates, all figures are shown in US dollars rather than sterling. For changes data, adjustments to remove the effects of exchange rate movements have been made.
Up to and including 1996 Q4 the data include two types of institution; Banks in the United Kingdom and some miscellaneous financial institutions (MFIs), namely, banks in the Channel Islands and the Isle of Man which have not opted to join the banking sector, non-banking sector gold dealers (up to 1994 Q4), and a small number of other financial institutions located on the mainland that are outside the banking sector but make loans to, or take deposits from, non-residents. With effect from 1997 Q4, data for MFIs are no longer included. Institutions with little external business and MFIs (from 1994 Q4 to 1997 Q4) do not provide geographical details. The business of these institutions is included in 'unallocated'.
Forward commitments and unsettled spot deals are not included in the data. Floating-rate notes and other investments with an original maturity of one year or more are included as are acceptances which are treated as on balance sheet items.
The data include liabilities and claims denominated in sterling as well as those denominated in foreign currencies. Figures for 1991 Q4 have been reduced by about 3% in total on account of a change in the reporting of swaps by some banks, who were previously including notional principal amounts associated with cross-currency interest rate swaps on their balance sheet. From 1999 Q1, details of liabilities and claims denominated in euros are shown separately.
UK liabilities
These comprise deposits and advances received by reporting institutions from non-residents, liabilities arising from acceptances given on behalf of non-residents and certificates of deposit issued in London by reporting institutions and held by non-residents.
These series do not include official liabilities in foreign currencies arising from direct borrowing by the UK government and from drawings on central bank facilities.
Gross liabilities include unallocated London certificates of deposit, the holders of which are unknown but are presumed to be non-residents. A further adjustment is made to gross liabilities in respect of certain other minor items which are not allocated sectorally by reporting institutions but which are assumed to relate to non-residents. Also, an adjustment is made to correct the misidentification of liabilities to, and claims on, non-residents which is reflected in an imbalance in intra-banking sector claims. Intra-banking sector liabilities should equal intra-banking sector claims; even after allowing for the incomplete institutional coverage, the figures as reported differ. Funds held by the Banque Centrale d'Algerie, acting as escrow agent in connection with arrangements for the return of US citizens detained in Iran, made in January 1981, were classified as liabilities to Middle East (Iran). International issues of securities (e.g. eurosterling and foreign currency bonds and FRNs) are included in external liabilities. All such paper issued by UK banks is assumed to be held by non-residents and is included within 'unallocated by currency'.
UK claims
These comprise the reporting institutions' loans and advances to non-residents; claims under sale and repurchase agreements to non-residents; commercial bills and other negotiable paper drawn on non-residents; lending under ECGD special schemes for exports, including amounts refinanced; sterling acceptances given on behalf of non-residents; and assets leased out under finance leases and holdings of certain investments outside the UK with an original maturity of one year or more. These investments include securities with contractually defined repayment dates issued by non-resident governments, non-resident institutions such as the World Bank, and corporate bodies registered abroad, except subsidiaries of the reporting institutions. Investments in the share and loan capital of reporting institutions' non-resident subsidiaries, and in securities without contractually defined repayment dates (e.g. equities) are excluded.
Sector split
Total bank and non-bank liabilities will not sum to total liabilities, due to International issues of securities. These issues are included in total liabilities but a sector breakdown is not available.
Assets contained within the reporting institution’s trading book are reported at market value.
Assets within the banking book are generally reported at market value as well. However, where this is impractical the Bank accepts such assets being reported at book value (i.e. the value standing in the institution’s own books).
Loans are always reported at the value recorded in the institution’s books (gross of provisions).
In the case of asset-backed securities, due to the possibility of early partial redemption of principal, the market value may not be the same as the original face value revalued at end period market prices.
REGION AND COUNTRY DETAILS
Some figures for individual countries are omitted (indicated by ..) either because data is not available or for reasons of confidentiality. In cases where figures are excluded for reasons of confidentiality, the amounts, which are generally small, are wherever possible included in the area totals. With effect from 1997 Q4, individual data for Guernsey, Jersey and the Isle of Man were collected and shown separately, having previously being classified as UK. The country groups are the same as those used by the Bank for International Settlements.
Regions - 1999 Q1 onwards
Developed European countries includes Andorra, Austria, Belgium, Cyprus, Denmark, Faeroe Islands, Finland, France, Germany, Greece, Greenland, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Netherlands, Norway, Portugal, San Marino, Slovenia, Spain, Sweden, Switzerland and Vatican City State.
Total developed countries includes developed European countries, Australia, Canada, Japan, New Zealand and United States.
Offshore centres includes Aruba, Bahamas, Bahrain, Barbados, Bermuda, Cayman Islands, Gibraltar, Guernsey, Hong Kong, Isle of Man, Jersey, Lebanon, Macao, Mauritius, Netherlands Antilles, Panama, Samoa, Singapore, West Indies UK and Vanuatu.
Developing Europe includes Albania, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, Former Czechoslovakia (to Q1 2004), Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Montenegro (from Q2 2007), Poland, Romania, Russia, Serbia (from Q2 2007), Serbia & Montenegro (from Q2 2004 to Q1 2007), Republic of Slovakia, Turkey, Ukraine, Former Soviet Union (to Q1 2004) and Former Yugoslavia (to Q1 2004).
Latin America and the Caribbean includes Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominica, Dominican Republic, Ecuador, El Salvador, Falkland Islands, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Paraguay, Peru, Saint Lucia, St Vincent and the Grenadines, Suriname, Trinidad and Tobago, Turks and Caicos Islands, Uruguay and Venezuela.
Africa and Middle East includes Algeria, Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Democratic Republic of Congo, Djibouti, Egypt, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Iran, Iraq, Israel, Ivory Coast, Jordan, Kenya, Kuwait, Liberia, Libya, Lesotho, Madagascar, Malawi, Mali, Mauritania, Morocco, Mozambique, Namibia, Niger, Nigeria, Oman, Palestinian Autonomy, Qatar, Rwanda, Sao Tome and Principe, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, St Helena, Sudan, Swaziland, Syria, Tanzania, Togo, Tunisia, Uganda, United Arab Emirates, Western Sahara, Republic of Yemen, Zaire, Zambia and Zimbabwe.
Asia and Pacific includes Afghanistan, Armenia, Azerbaijan, Bangladesh, Bhutan, British Overseas Territories, Brunei, Cambodia, Canton and Enderbury Islands, People's Republic of China, East Timor, Fiji, French Polynesia, Georgia, India, Indonesia, Kazakhstan, Kirgizstan, Kiribati, Democratic People's Republic of Korea, Republic of Korea, People's Democratic Republic of Lao, Malaysia, Maldives, Marshall Islands, Micronesia, Mongolia, Myanmar, Nauru, Nepal, New Caledonia, Palau, Pakistan, Papua New Guinea, Philippines, Solomon Islands, Sri Lanka, Taiwan, Tajikistan, Thailand, Tonga, Turkmenistan, Tuvalu, US Trust Territories in the Pacific, Uzbekistan, Socialist Republic of Vietnam and Wallis and Fortuna Islands.
Regions - Pre-1999
BIS Industrial area includes Austria, Belgium, Canada, Denmark, Finland, France, Germany, Italy, Japan, Luxembourg, Netherlands, Norway, Republic of Ireland, Spain, Sweden, Switzerland and United States.
Reporting offshore centres includes Bahamas, Bahrain, Cayman Islands, Hong Kong, Netherlands Antilles and Singapore.
Non-reporting offshore centres includes Anguilla, Antigua, Barbados, Bermuda, British Virgin Islands, Dominica, Grenada, Lebanon, Liberia, Montserrat, Panama, St Kitts-Nevis, Saint Lucia, St Vincent and the Grenadines, Turks and Caicos Islands and Vanuatu.
Total BIS area includes BIS Industrial area, Reporting offshore centres and non-reporting offshore centres.
Other developed Europe includes Andorra, Cyprus, Gibraltar, Greece, Guernsey (1997 Q3 onwards), Iceland, Isle of Man (1997 Q3 onwards), Jersey (1997 Q3 onwards), Liechtenstein, Malta, Monaco, Portugal, Turkey, Vatican City State and Former Yugoslavia.
Other developed countries outside Europe includes Australia and New Zealand.
Eastern Europe includes Albania, Bulgaria, Former Czechoslovakia, Czech Republic, Estonia, German Democratic Republic (until 1990 Q3), Hungary, Latvia, Lithuania, Poland, Romania, Russia, Republic of Slovakia and Other Former Soviet Union.
Latin America and the Caribbean includes Argentina, Aruba, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Falkland Islands, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Paraguay, Peru, Suriname, Trinidad and Tobago, Uruguay and Venezuela.
Middle East includes Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Libya, Oman, Palestinian Autonomy (from 1998 Q1), Qatar, Saudi Arabia, Syria, United Arab Emirates and Republic of Yemen.
Africa includes Algeria, Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Democratic Republic of Congo (from 1998 Q2), Djibouti, Ethiopia, Eritrea (from 1998 Q2), Equatorial Guinea, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Kenya, Lesotho, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, St Helena, Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda, Western Sahara, Zaire, Zambia and Zimbabwe.
Asia includes Afghanistan, Bangladesh, Bhutan, British Overseas Territories, Brunei, Cambodia, Canton and Enderbury Islands, People's Republic of China, Fiji, French Polynesia, French Southern and Antarctic Territories, India, Indonesia, Kiribati, Democratic People's Republic of Korea, Republic of Korea, People's Democratic Republic of Lao, Macau, Malaysia, Maldives, Mongolia, Myanmar, Nauru, Nepal, New Caledonia, Pakistan, Papua New Guinea, Philippines, Solomon Islands, Sri Lanka, Taiwan, Thailand, Tonga, Tuvalu, US Trust Territories in the Pacific, Socialist Republic of Vietnam and Wallis and Fortuna Islands.
Countries
BritishOverseasTerritories includes British Antarctic Territory, British Indian Ocean Territory and Pitcairn Islands.
Denmark includes Faeroe Islands and Greenland until 1998 Q4.
France includes French Guiana (1999 Q1 onwards), French Southern Territories (1999 Q1 onwards), Guadeloupe, Martinique, Mayotte (2003 Q4 onwards), Monaco (1999 Q1 onwards), Reunion and St Pierre and Miquelon.
Other Former Soviet Union (pre-1999) includes Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kirgistan, Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.
United Arab Emirates includes Abu Dhabi, Dubai and Other United Arab Emirates.
United States includes US Virgin Islands.
West Indies UK includes Anguilla, Antigua and Barbuda, British Virgin Islands, Montserrat and St Christopher/St Kitts-Nevis.
'Former' countries
Claims and liabilities against Former Czechoslovakia and Former Soviet Union are no longer collected. Any data that was previously reported against these countries is now reallocated to the appropriate successor country or to unallocated.
Claims and liabilities against Former Yugoslavia are no longer collected. Any remaining data that was previously reported against Former Yugoslavia is now reallocated to the appropriate successor country or to unallocated. Serbia & Montenegro, which accounted for a large proportion of Former Yugoslavia figures, is shown separately from Q2 2004 until Q1 2007; thereafter Serbia is shown separately, while Montenegro is included in ‘Other’ within Developing Europe.
Countries not separately shown
Countries not identified will be grouped by region as "countries not separately identified". These groups will also include any data suppressed for confidentiality within the separately identified countries within that region. The countries within each group are:
African and Middle East countries not separately identified (1999 Q1 onwards) includes Benin, Burkina Faso, Burundi, Cape Verde, Central African Republic, Chad, Comoros, Congo, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Gabon, Gambia, Guinea, Guinea-Bissau, Lesotho, Madagascar, Mauritania, Namibia, Niger, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, Somalia, St Helena, Swaziland, Togo and Western Sahara.
African countries not separately identified (pre 1999) includes Benin, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Democratic Republic of Congo (from 1998 Q2), Djibouti, Eritrea (from 1998 Q2), Equatorial Guinea, Gabon, Gambia, Guinea, Guinea-Bissau, Lesotho, Madagascar, Mali, Mauritania, Mozambique, Namibia, Niger, Rwanda, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia, St Helena, Togo, Western Sahara and Zaire.
Asian and Pacific countries not separately identified (1999 Q1 onwards) includes Bhutan, Canton and Enderbury Islands, East Timor, Fiji, French Polynesia, Georgia, Kirgizstan, Kiribati, Democratic People's Republic of Korea, People's Democratic Republic of Lao, Maldives, Marshall Islands, Micronesia, Mongolia, Myanmar, Nauru, New Caledonia, Palau, Papua New Guinea, Solomon Islands, Tajikistan, Tonga, Tuvalu, US Trust Territories in the Pacific and Wallis and Fortuna Islands.
Asian countries not separately identified (pre 1999) includes Bhutan, British Overseas Territories, Cambodia, Canton and Enderbury Islands, Fiji, French Polynesia, French Southern and Antarctic Territories, Kiribati, People's Democratic Republic of Lao, Maldives, Mongolia, Myanmar, Nauru, Nepal, New Caledonia, Papua New Guinea, Solomon Islands, Tonga, Tuvalu, US Trust Territories in the Pacific and Wallis and Fortuna Islands.
Developed European countries not separately identified (1999 Q1 onwards) includes Faeroe Islands, Greenland and San Marino.
Developing European countries not separately identified (1999 Q1 onwards) includes Belarus, Former Czechoslovakia (to Q1 2004), Macedonia, Moldova and Montenegro (from Q2 2007).
Latin American and Caribbean countries not separately identified (1999 Q1 onwards) includes Dominica, Falkland Islands, Grenada, Guyana, Haiti, Nicaragua, Saint Lucia, St Vincent and the Grenadines and Suriname.
Latin American and Caribbean countries not separately identified (pre 1999) includes Aruba, Belize, Bolivia, Costa Rica, Dominican Republic, El Salvador, Falkland Islands, Guatemala, Guyana, Haiti, Honduras, Nicaragua, Suriname and Trinidad and Tobago.
Non-reporting offshore centres not separately identified (pre 1999) includes Anguilla, Antigua, Dominica, Grenada, Montserrat, St Kitts-Nevis, Saint Lucia, St Vincent and the Grenadines, Turks and Caicos Islands and Vanuatu.
Offshore centres not separately identified (1999 Q1 onwards) includes Aruba, Samoa and Vanuatu.
FURTHER INFORMATION
More detail on the use and availability of international banking statistics can be found in a Bank of England: Monetary & Financial Statistics article titled 'Developments in UK international banking statistics'.
