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Home > Statistics > Explanatory Notes - Bank of England ‘Weekly Report’ and Consolidated Balance Sheet
 

Explanatory Notes - Bank of England ‘Weekly Report’ and Consolidated Balance Sheet

OVERVIEW
AVAILABILITY
SOURCES
DEFINITIONS
VALUATION AND BREAKS
KEY RESOURCES

Overview

The 2009 Banking Act removed the legal requirement for the Bank to continue publishing a summary balance sheet showing its main assets and liabilities, known as the Bank Return. In 2012, Ian Plenderleith completed a review of the Bank’s provision of Emergency Liquidity Assistance (ELA). Regarding the future publication of the Bank Return, the review recommended that the Bank ‘should consider ceasing to do so at an appropriate time, in order to improve its ability to provide covert liquidity assistance in future.’ The Bank’s public response was to agree the recommendation and pledge to undertake further analysis.
On 30 June 2014 the Bank announced that it intended to replace the Bank Return publication with the Weekly Report. The Weekly Report provides data on all assets and liabilities generated through the Bank’s monetary policy operations, and would typically disclose over 90% of the Bank’s balance sheet by value. The information provided in the Weekly Report is augmented by the Bank of England consolidated balance sheet. This is published on a quarterly basis, with a lag of five quarters, with data for other assets and liabilities, completing the full balance sheet. This balance sheet report is prepared under the Bank’s accounting policies (listed in the Bank’s Annual Report).
The final Bank Return was published on 25 September 2014, with the first Weekly Report published on 2 October 2014. The Weekly Report is published each week on a Thursday for positions as at the previous day, and is available at: www.bankofengland.co.uk/publications/Pages/weeklyreport/default.aspx.
The Bank of England consolidated balance sheet is published on the first Tuesday of each quarter, and is available at www.bankofengland.co.uk/publications/Pages/weeklyreport/default.aspx.
 

Availability

Each Thursday the Bank of England publishes the Weekly Report on its website. Each Monday, the latest Weekly Report data are added to the full time series on the Statistical Interactive Database (IADB) and data for the most recent periods are reproduced  in Table B1.1.2 of Monetary and Financial Statistics (Bankstats). In addition, the Bank's contribution to the MFI consolidated balance sheet is published monthly in Table B2.2 of the same publication.

Bankstats Table B1.1.2 replaced Table B1.1.1 following the decision to replace the Bank Return with the Weekly Report. Consequently, the final observation in Table B1.1.1 is as at 24 September 2014.  The first publication of Table B1.1.2 was on 6 October 2014, and contained some back data on a consistent basis. Consistent data for series not previously part of the Bank Return are available on the IADB for periods since September 2013.

On the first Tuesday of each quarter the Bank of England publishes the consolidated balance sheet on its website. On the first Wednesday of each quarter, the latest consolidated balance sheet data are added to the full time series on the Statistical Interactive Database (IADB) and data for most recent periods are reproduced in Table B1.1.3 of Monetary and Financial Statistics (Bankstats).

 

Sources

Data are collected from the Bank's financial records.

Definitions

The new Weekly Report and Consolidated Balance Sheet include detail on:

Reserves balances: Current account balances held by commercial banks and building societies at the Bank. The Bank pays Bank Rate on reserve balances - a key part of the implementation of monetary policy. Reserve balances can be used by commercial banks to make payments and constitute a high quality liquid asset for them to hold. The sharp increase in reserves balances since March 2009 reflects the fact that asset purchases under the MPC's policy of Quantitative Easing have been financed by increasing reserves balances.

Short-term open market operations: amounts lent or borrowed in one-week operations or at other maturities within the maintenance period.

Notes in circulation includes notes outside the Bank and higher value notes used as cover for the note issue of banks in Scotland and Northern Ireland.

Long-term operations: amounts lent in Indexed Long-Term Repo operations or under the Bank’s Contingent Term Repo Facility.

Sterling denominated bond holdings consist of gilts financed by the Bank’s free capital and Cash Ratio Deposits.

Loan to Asset Purchase Facility: Since March 2009, the MPC has been using a newly set up subsidiary (the Bank of England Asset Purchase Facility Fund (BEAPFF)) to make purchases of assets in pursuit of its monetary policy aims. Whilst the accounts of the Fund are not consolidated with those of the Bank, the Fund is financed by loans from the Bank. The loans account for the majority of the increase in 'other assets' since March 2009 in the old Table B1.1.1 and are now recorded here.

Foreign currency public securities issued by the Bank to finance holdings of its own foreign currency reserves.

Foreign Currency reserve assets funded through the Bank’s issuance of medium-term dollar bond securities. These assets consist of euro, dollar and yen bond assets. The Bank uses derivative instruments to manage the currency and interest rate exposures that arise from the holding of these financial assets.

Valuation and breaks

Money market reform

On 18 May 2006 the Bank of England introduced a range of reforms relating to its money market operations. This altered both the structure and the size of the Bank of England's balance sheet.  Consequently, there are some data series where the first observation for data is 24 May 2006.
Details on the changes made to the Bank's monetary policy operations can be found in 'The implications of money market reform for data published in Monetary and Financial Statistics' in the June 2006 issue of Monetary and Financial Statistics and by following the URLs below:

www.bankofengland.co.uk/markets/Pages/money/default.aspx,

www.bankofengland.co.uk/markets/money/publications/redbook0506.pdf

On 2 October 2014 the Bank of England replaced  the Bank Return with the new Weekly Report.  The final observation for data in Table B1.1.1 was 24 September 2014 and the first observation for data in Table B1.1.2 was 1 October 2014.  Details of these changes can be found in the Quarterly Bulletin article ‘Changes to the Bank’s weekly reporting regime’ and in ‘Replacement of the Bank Return and changes to the release of notes and coin data’ by Jon Beadle and Martin Udy, Bank of England Bankstats (Monetary and Financial Statistics, June 2014 by following the URLs below.

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