Explanatory Notes -Banks in the United Kingdom: non-resident direct investment - transactions
OVERVIEW
AVAILABILITY
SOURCES
REVISIONS
DEFINITIONS
VALUATIONS AND BREAKS
FURTHER INFORMATION
This table contains selected direct investment capital and current transactions by UK banking sector institutions in their non-resident branches, subsidiaries and associates (outward transactions) and direct investment capital and current transactions in UK banking sector institutions by non-resident incorporated head offices, parent companies or companies holding an associate interest (inward transactions).
Direct investment transactions in currencies other than sterling are translated into sterling at either the average rate during the period, or the rate at the time of the transaction.
Data are available from 1998. Publication of data will usually occur annually on the last working day of October. The level of geographic breakdown shown is broadly consistent with ONS requirements; data for other countries may be supplied on request. A full country analysis cannot be published due to confidentiality constraints.
These data are collected quarterly on a number of surveys. Capital transactions are reported on the Form HF and Current transactions are reported on the Form BG.
All data are subject to revision if and when new information becomes available. For more information on revisions practices see the Explanatory Note on revisions, available here.
Non-residents are defined as economic units that have a centre of economic interest outside the domestic economic territory. UK economic territory excludes the Channel Islands and the Isle of Man.
Capital transactions comprise working capital invested in fixed assets, ordinary shares and other capital.
Current transactions are attributable profits or losses to the investor after provisions for depreciation and bad debts and after deducting domestic taxes, as well as dividends paid to the investor during the period.
Direct investment in branches is a measurement of injections of working capital which is invested in fixed assets.
Direct investment in subsidiaries and associates is defined by a holding of 10 % or more of the shares of, or a significant influence over a non-resident company.
Ordinary shares are defined as an institution's paid-up equity share capital, including voting and non-voting ordinary shares and deferred shares.
Loan capital and preference shares include bonds, debentures, loan stocks, and floating rate notes; as well as cumulative, participating, redeemable and convertible preference shares.
Other capital funds and reserves are the capital reserves and retained profits attributable to the direct investor. For subsidiaries working capital comprises only the value of equipment provided free of charge by the direct investor.
Subordinated bond issues are funds subordinated by the UK parent, which are derived from loan stocks issued by a non-resident subsidiary of the UK reporting institution.
Commissions and fees: examples include commissions and fees related to foreign exchange transactions, new issues of securities, portfolio management, derivative transactions etc.
Direct investment income: amounts receivable where there is an outward direct investment relationship and amounts payable relating to inward direct investment.
Data are collected on an accruals accounting basis. The data are presented according to the guidelines in the International Monetary Fund’s (IMF) Balance of Payments Manual (fifth edition). The data are therefore compatible with the data published by the Office for National Statistics (ONS). However, the ONS banking sector data may include estimates for data that were not collected on the Bank of England forms and other adjustments.
