VALUATION AND BREAKS
These data collate information from UK MFIs on deposits from and lending to UK residents other than MFIs and are separated into 18 broad industrial categories, based upon the SIC classification system. Until Q3 2007, the analysis of lending covered loans, advances (including under reverse repos), finance leasing, acceptances and facilities (all in sterling and other currencies) provided by reporting MFIs to their UK resident non-MFI customers, as well as MFI holdings of sterling and euro commercial paper issued by these resident customers. Following a review of statistical data collected, acceptances and holdings of sterling and euro commercial paper are no longer collected at the industry level detail with effect from Q4 2007 data. Total lending therefore reflects loans and advances (including under reverse repos) only, from Q4 2007 data.
Published non-seasonally adjusted lending data exist from 1975 with unadjusted deposits data available from 1997 (based on SIC 92). From January 2011, all lending and deposit data are based on the SIC 2007 classification system and new series introduced on this basis are available from 2011. Publication of data will occur on the 21st working day following the end of the reporting period in statistical release Analysis of monetary financial institutions lending to and deposits from UK residents. This can be viewed via the Statistical Release Calendar.The frequency of the statistical release changed to monthly from July 2009 data onwards, having previously been quarterly. These data are also published in Tables C1.1 and C1.2 of Monetary and financial statistics (Bankstats).
UK-resident MFIs report data directly to the Bank of England on forms AD and AL. Approximately 150 MFIs (excluding central bank) with private sector deposits or loans over £1,000mn report the data.
Definitions of individual industrial categories (including examples) can be found here.
Counterparty classification is determined by the main activity of the entity, irrespective of ownership (public or private) with lending to unincorporated businesses and non profit institutions serving households (NPISH), allocated according to the appropriate trade or profession.
Non-financial corporations (items 1-14) are those which exist to produce goods and provide non-financial services. They are mainly public limited companies, private companies and partnerships where these are distinct from their owners.
Other financial corporations
Other financial corporations (Items 15-17) are private financial corporations (other than monetary financial institutions) engaged primarily in provision of financial services. Examples include financial intermediation, insurance companies and pension funds and activities auxiliary to financial intermediation (e.g. fund management).
Information regarding the relationship between these data and those within sectoral M4 and M4 lending can be found in the article ‘A comparison of the industrial analysis of bank lending to and deposits from UK residents and sectoral M4 and M4 lending’ in the January 2005 edition of Bank of England: Monetary and Financial Statistics.
Deposits include money placed on both sight and time deposit as well as the cash leg of any repo (borrowing under repo).
Deposits placed by fund managers consists of money placed on behalf of UK investment and unit trusts, UK money market mutual funds, UK insurance companies and pension funds, UK individuals, other UK residents, non-resident clients and unidentifiable clients.
Loans and advances include the cash leg of reverse repos (lending under repo), but not funds placed through the local government money market or funds lent to UK banks, UK building societies or non-residents.
Acceptances (until Q3 2007) are for bills accepted by reporting institutions under facilities granted to UK residents (other than UK MFIs) that are still outstanding; those discounted by the reporting institution itself are advances rather than acceptances.
Holdings of sterling commercial paper (until Q3 2007) were incorporated within loans and advances in 1991, holdings of euro commercial paper (until Q3 2007) were incorporated in January 1999.
Facilities data consist of the total amount of overdraft, loan and acceptance facilities outstanding, both drawn and undrawn.
VALUATION AND BREAKS
The current SIC 2007 coding was preceded by a change from SIC 68 to SIC 80 in 1983 and from SIC 80 to SIC 92 in 1997. Data for sterling lending which bridges the change from SIC 80 to SIC 92 and from SIC 92 to SIC 07 using condensed industrial categories are available both seasonally adjusted and non-seasonally adjusted. Data for sterling and foreign currency deposits and lending which bridges the change from SIC 92 to SIC 07 only is available on a non-seasonally adjusted basis. These data should be taken with some warning, as although broadly consistent, small changes in category definition may be evident. Further information on the current SIC 2007 structure can be found in the article ‘Changes to the Industrial analysis of loans and deposits data’ in the February 2011 edition of Bank of England: Monetary and Financial Statistics. .
Aside from classification changes arising from amendments to the SIC, there have also been other classification changes, changes in reporting methods, and changes in reporting institutions. Such changes are adjusted to take account of factors that might otherwise significantly distort them, for example restructuring of company groups; and are footnoted in each series at the point they may impact.
At end-March 1993 the definition of bank ‘lending for house purchase’ (now known as ‘lending secured on dwellings’) changed. The net effect of the re-definition has been to boost lending to individuals ‘secured on residential property’, with a corresponding reduction in ‘other advances to persons’. The changes shown in these tables have been adjusted to exclude the estimated effect of the re-definition.
The classification of deposits from the Issue Department of the Bank of England was amended prior to the publication of data for 1998 Q3. Previously these deposits were assigned to public administration and defence. Hence following the creation of a separate central bank sector on 1 April 1998, Q2 1998 sees a sizable fall in the coverage of this Table which now excludes both deposits from and deposits with both the Banking and Issue Departments of the Bank of England. Flows for public administration and defence for Q2 1998 have been adjusted to remove this effect.
and other revaluations potentially distort flows. Using published data and certain other information provided by the reporting MFIs, adjustments have been made to total lending flows from 1986 onwards (before then adjustments were made on an ad-hoc basis). Until 1992 adjustments have been carried through only to other lending to persons
. Thereafter they have been applied each quarter (and each month from July 09) to this category, to lending secured on dwellings, to real estate and occasionally, when significant write-offs have been identified, to other categories. Further information on write-offs can be obtained here
.Data timing changes:
From 1975 data were collected on the third Wednesday of the month in February, May, August and November. The reporting day was changed to the end of the month in 1986.
At end-March 1993, the industrial analysis moved to end-calendar quarter basis. The analysis of the period to end-December 1993 therefore covers thirteen months, and thus the changes are not directly comparable with those for the previous years.
Data were not collected in Q3 1997 therefore levels for this period are interpolated and flows for both Q3 1997 and Q4 1997 are estimated.
A more comprehensive exposition of the changes made to the dataset in 1997, along with further information on the data, can be found in the article 'The new industrial analysis of bank deposits and lending' in the January 1999 edition of Bank of England: Monetary and Financial Statistics.
From July 2009 onwards, the data collection changed from a quarterly basis to a monthly basis. The statistical release Analysis of monetary financial institutions lending to and deposits from UK residents was also changed to monthly publication (where it had previously been quarterly) at that time. For further information on this higher frequency of data, please see the article Measures of M4 and M4 lending excluding intermediate other financial corporations from the May 2009 issue of this publication.
From January 2010 data onwards, all loans that have been securitised by MFIs will be included on the institutions’ balance sheet for statistical reporting purposes. Some institutions reported securitisations on balance sheet prior to 2010, so their reporting did not change. However, other institutions brought back on to their balance sheets loans that had been securitised in the past. When these loans came back on balance sheet, an additional liability to the SPV was also brought on balance sheet, to balance out the increase in loans. This caused a level shift in various series in January 2010, as well as changing the coverage of various series from January 2010 data onwards. For more details, please see the February 2010 Monetary and Financial Statistics article “Statistical Reporting of Securitisations” by Jennifer Owladi.
Standard Industrial Classification codes
The SIC codes associated with the series shown in Table F, Money and Credit statistical release are available below
Further information on the industrial analysis of MFIs deposits from and lending to UK residents can be found using the following links.
Birdee, A and Gilhooly,R (2011) ‘Changes to the Industrial analysis of loans and deposits data’, Monetary and Financial Statistics, February 2011.
Owladi, J (2010), ‘Statistical Reporting of Securitisations’, Monetary and Financial Statistics, February 2010, pages 1-3.
Janssen, N (2009), ‘Measures of M4 and M4 lending excluding intermediate other financial corporations’,Monetary and Financial Statistics, May 2009, pages 1-4
Westley, K (1999), 'The new industrial analysis of bank deposits and lending' Monetary and Financial Statistics, January 1999, pages 1-5.
Golcher, R and Wall, S (2005), ‘A comparison of the industrial analysis of bank lending to and deposits from UK residents and sectoral M4 and M4 lending’ Monetary and Financial Statistics, January 2005, pages 9-12