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Home > Statistics > Explanatory Notes - Monetary financial institutions (excluding central bank) balance sheet
 

Explanatory Notes - Monetary financial institutions (excluding central bank) balance sheet

Overview

This table presents the combined balance sheet of all MFIs (excluding central bank) within the United Kingdom.

Availability

All data are available monthly from January 2010, and quarterly from 2010 Q1. The data are not seasonally adjusted. Changes to data may not equal the difference in amounts outstanding because they include, among others, adjustments to exclude exchange rate movements and changes in the reporting population.

Tables B1.2 and B1.3.1 show historical balance sheets for the "other banks" and "building societies" sectors respectively (see December 2009 Bankstats or earlier editions).To protect the confidentiality of reporting institutions data the publication of separate series for building societies has been discontinued from January 2010.

Publication of data will usually occur on the 21st working day following the end of the period in Table B1.4 in Bankstats (Monetary and Financial Statistics) or subject to the published Statistical release calendar.  

Sources

Balance sheet data are provided by all UK-resident MFIs directly to the Bank of England on the form BT on a monthly or quarterly basis. MFIs with eligible liabilities over £400mn or private sector deposits or loans over £1,000mn report data on a monthly basis. For those MFIs who do not report monthly, data are grossed up to provide a full population figure.

Definitions

 
This table aggregates the balance sheets of all financial institutions (except the Bank of England) recognised by the Bank of England as UK MFIs for statistical purposes.
 

This includes:
 
(a) institutions which have a permission under Part 4 of the Financial Services and Markets Act 2000 (FSMA) to accept deposits but not:

  1. credit unions
  2. firms which have a permission to accept deposits only in the course of effecting or carrying out contracts of insurance in accordance with that permission
  3. friendly societies

(b) European Economic Area credit institutions with a permission under Schedule 3 of FSMA to accept deposits through a UK branch. This table excludes the Banking and Issue Departments of the Bank of England. Balance sheet data in this table cover both the liabilities and assets of all other UK-resident MFIs.

Liabilities

 
Notes outstanding comprise the sterling notes issued by Scottish banks and the Northern Ireland banks.
 
Cash loaded cards comprise cash loaded cards issued by MFIs.
 

Deposits

 
These include all credit balances on customers' accounts. This covers deposits by other UK MFIs (except deposits in connection with syndicated lending), deposits by non-resident (except those from non-resident offices of the reporting institution invested in fixed assets which are included in capital and other funds), overdrawn accounts with UK and non-resident correspondents, and deposits from other UK residents. They also include acceptances granted, liabilities under sale and repurchase agreements, certificates of deposit and other short-term paper issued (all shown separately except bills accepted by another UK bank), and all liabilities in gold bullion or gold coin (which are included in 'Other/Foreign currency liabilities') except that deposited for safe custody.
 
Sight deposits comprise balances as defined above, whether interest-bearing or not, are accessible without penalty, either on demand or by close of business on the day following that on which the deposit was made.
 
Time deposits comprise all other deposits except acceptances granted, certificates of deposits and other short-term paper. Time deposits include the cash elements of all ISA deposits including those which can be withdrawn on demand, and bills accepted by other UK MFIs.
 
Acceptances granted represent the MFIs' liabilities to the owners of the bills.
 
Liabilities under sale and repurchase agreements comprise cash receipts arising from the sale of securities or other assets for a finite period with a commitment to repurchase. Liabilities which arise when securities or other assets are sold in exchange for other securities or other non-cash assets are excluded. The amount of the liability (or its currency denomination) is determined by the cash consideration not the market value (or currency denomination) of the securities.
 
CDs etc. and other short-term paper issued include promissory notes issued by the reporting institutions. Also included are unsubordinated capital market instruments (except debentures and secured loan stocks) of any maturity, and subordinated loans with an original maturity of five years or less. Other subordinated loans and debentures are included in 'Capital and other funds'. Issues of bills accepted by other UK MFIs are included in time deposits placed by UK MFIs.
 
Items in suspense and transmission comprise credit balances not in customers' names but relating to customers' funds rather than to the reporting institution's internal funds or to shareholders' funds; balances awaiting settlement of securities transactions, and standing orders and credit transfers debited to customers' accounts, and other items for which the corresponding payment has not yet been made by the reporting institution. Also included are credits in course of transmission to UK branches of the reporting institution, to other UK MFIs, and to non-resident banks.
 
Net derivatives comprise the overall net derivatives position of contracts which are included within the trading and banking books of the reporting institutions.
 
Accrued amounts payable are gross amounts payable which have not yet been paid or credited to accounts.
Capital and other funds include shareholders' funds, working capital provided by non-resident offices, and all internal accounts (both liability and asset). Included here is loan capital such as debentures and subordinated loans with an original maturity of more than five years.
 

Assets

Balances with the Bank of England/UK Central Bank

Cash ratio deposits: On 1 June 1998 a statutory scheme came into effect whereby both banks and building societies with average eligible liabilities of £400mn or more were required to hold non-interest-bearing deposits with the Bank of 0.15% of their eligible liabilities in excess of £400mn. With effect from 1 June 2004 the threshold for average eligible liabilities was raised to £500mn and deposits collected on banks eligible liabilities over £500mn. The percentage was reduced to 0.11% on 2 June 2008. With effect from 3 June 2013 the threshold for average eligible liabilities was raised to £600mn. The level of each institution's CRD is currently calculated twice-yearly (currently in May and November) at 0.18% of average ELs, over the previous six end-calendar months, in excess of £600mn.
 
Other: These comprise balances with the Bank of England other than cash ratio deposits.
 

Market loans

 
UK MFIs includes all money (including correspondent balances, finance leasing and initial margin payments relating to futures and options contracts) lent to, or placed on deposit with, other UK MFIs (excluding the Bank of England); and bills drawn by other UK MFIs under acceptance credit facilities which the reporting institution has itself discounted. Overdrawn accounts are included under deposits.
 
UK MFIs CDs include holdings of promissory notes and other short-term paper issued by other UK MFIs.
 
UK MFI commercial paper includes MFIs' holdings of commercial paper issued by UK-resident MFIs.
 
Non-residents includes all balances (including correspondent balances) with, and funds lent to, non-resident banks (except trade and portfolio investments); bills drawn by non-resident banks under acceptance credit facilities opened by the reporting institution which the reporting institution has itself discounted; and certificates of deposit, promissory notes, commercial paper and other short-term paper issued by non-resident banks and owned by the reporting institution.
 
Acceptances granted comprise a claim on the counterparty whose bill the MFI has accepted, except bills both accepted and discounted by the same MFI (the latter are included as lending unless these bills are subsequently rediscounted). Acceptances are classified according to the customer who has asked for the acceptance facility to be opened.
 

Bills

 
MFIs bills comprise all sterling bills which have been accepted by another UK MFI, including sterling bills issued by the Bank of England.
 
Treasury bills are short-term debt securities (with original maturity of up to 364 days) of the UK government.
 
Other UK residents includes local government bills, public corporation bills not accepted by UK MFIs, sterling commercial paper issued by other UK residents, and UK paper not included elsewhere. It excludes bills connected with lending under the special schemes for exports and domestic shipbuilding, and bills which the reporting institution has disposed of by rediscounting. Bills and notes are classified according to the currency in which they are drawn.
 
Claims under sale and repurchase agreements comprise cash claims arising from the purchase of securities for a finite period with a commitment to re-sell. Claims which arise when securities or other assets are purchased in exchange for other securities etc. are excluded. The amount of the claim (or its currency denomination) is determined by the cash consideration not the market value (or currency denomination) of the securities.
 

Advances

 
These include all balances with, and lending (whether against collateral or not) to, customers, not included elsewhere. They include amounts receivable under finance leases and the reporting institution's own acceptances which it has also discounted (except those drawn by other UK MFIs and non-resident banks, which are included in market loans). Own acceptances discounted are shown as advances to the party who has asked for the acceptance credit to be opened.
 
Advances purchased by or assigned to the reporting institutions under a transferable loan facility or similar arrangement are included, but loans where the borrower is a UK MFI, a non-resident office of the reporting institution or another non-resident bank are reported under market loans. Provisions for bad and doubtful debts are not deducted. Where the reporting institution participates in (or acts as manager or co-manager of) a loan financed by more than one institution, only the reporting institution's participation for its own account is included, the loan being classified according to the ultimate borrower. See the note below on residential status for the definition of UK and non-residents.
 
Advances to the UK public sector include all loans to central and local government and public corporations.
 
Advances to other UK residents includes all lending, at fixed rates under Department of Trade and Industry guarantee for shipbuilding in the United Kingdom for UK buyers, but excluding any amounts refinanced.
 
Advances to non-residents include all lending for exports under ECGD bank guarantee (excluding any amounts refinanced).
 

Investments

 
These include all securities beneficially owned by the reporting institution. They include securities which the reporting institution has sold for a finite period, but with a commitment to repurchase (i.e. repos), but exclude securities which have been bought for a finite period, but with a commitment to resell (i.e. reverse repos). Securities are defined as marketable or potentially marketable income-yielding instruments including bonds, FRNs, preference shares and other debt instruments but excluding certificates of deposit and commercial paper issued by banks and building societies, which are shown under market loans.

 

All investments are reported on a net basis, so that a negative position represents a short position in that particular type of security, for example as a result of borrowing that security.

UK government bonds include all bonds issued by the central government.

Other public sector investments include certificates of tax deposit, local government stocks and bonds which are listed on The London Stock Exchange and UK public corporation stocks and bonds.

Investments in UK MFIs include Bank of England Euro Notes and Bank of England foreign currency bonds.

Investments in other UK residents include MFI holdings of equities and bonds issued by the UK non-MFI private sector.
 
Investments in non-residents include deposits (including retained profits) with non-resident offices which have been invested in fixed assets such as premises and equipment. .
 
Items in suspense and collection include all debit balances not in customers' names but relating to customers' funds rather than to the reporting institution's own internal funds (e.g. debit balances awaiting transfer to customers' accounts) and balances awaiting settlement of securities transactions. Collections comprise cheques etc. drawn, and in course of collection, on other UK MFIs. They include cheques that have been credited to customers' accounts but are held overnight before being presented or paid into the reporting institution's account with another UK MFIs or non-resident bank; they exclude cheques already passed to other UK MFIs for collection (these are included under 'Market loans' to UK MFIs). They include all collections on non-resident banks and items in transit to non-resident offices of the reporting institution, where the reporting institution is acting as principal and not as an agent for collection and where it has already given credit or value for the items. .
 
Accrued amounts receivable are gross amounts receivable but which have not yet been received and include interest and other revenues.
 
Other assets includes holdings of gold bullion and gold coin (in 'Other currency assets'), other commodities (e.g. silver), together with land, premises, plant and equipment and other physical assets owned, or recorded as such, including assets leased out under operating leases and leased in under finance leases. Assets leased out under finance leases are included as loans.
 

Residential status

 

For statistical purposes, the United Kingdom comprises Great Britain and Northern Ireland, but excludes the Channel Islands and the Isle of Man. UK residents include: HM Government and other UK public authorities; enterprises which produce goods and services in the United Kingdom, including non-resident enterprises' branches and subsidiaries located and operating in the United Kingdom; individuals permanently resident in the United Kingdom (including temporary residents who have stayed, or who intend to stay, for a year or more) together with individuals normally resident in the United Kingdom who are overseas for less than a year; and members of UK armed forces and officials of HM Government serving overseas, as well as their dependants.

Non-residents include: non-resident governments, together with their diplomatic and military offices and representatives in the United Kingdom; international organisations, including their branches or representatives in the United Kingdom; UK representative offices of non-resident banks; non-resident offices of the reporting institution; enterprises located and operating overseas, including branches and subsidiaries of businesses which are themselves UK residents; and persons (including those of UK origin) who are residing outside the United Kingdom for a year or more.
 

Valuation and Breaks

 
All data are reported in sterling, with foreign currency data converted to sterling at the middle spot sterling exchange rate at 4pm on the last working day of the month.

 

Treatment of securities

From February 2014 data onwards, transfers of quoted shares were omitted from net securities flow series, bringing their treatment more into line with the Bank’s approach to transfers of loans.  For more details about this change, please see the May 2015 Bankstats (Monetary and Financial Statistics), ‘Changes to the treatment of securities transactions in the Bank of England’s monetary statistics’, available at www.bankofengland.co.uk/statistics/Documents/articles/2015/2may.pdf

Key Resources

 Changes to the Publication of Bank and Building Societies Statistics, O’Connor, P, (2010), Monetary and Financial Statistics, January
 
 Suspense items - allocation within aggregate banks' data, Docker, S, (2006), Monetary and Financial Statistics, February
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