Statistical Notices to Reporting Banks 2000/02
Statistical Notices should be received by all those responsible for the completion of Bank of England returns. To add names to the circulation list please contact the Domestic Banking Statistics Helpdesk (tel. 020-7601 5360 or peter.notman@bankofengland.co.uk).
This Statistical Notice covers the following topics:
- Reporting of UK banks drawing bills of exchange and acceptances granted by other banks (effective end-March reporting)
- Use of repo by the Bank of England to "mop" up money market surpluses (effective end-April reporting)
- Reminder: classification of the Debt Management Office
1. Reporting of UK banks drawing bills of exchange and acceptances granted by other banks (effective end-March reporting)
The restriction on banks drawing bills of exchange was lifted by the Bank of England on 6 March 2000. For bills accepted by another UK bank, once a cash flow takes place, drawers should enter their liability as a time deposit from UK banks other than the Bank of England (BT item 3B), accepting banks should report holdings of own acceptances of other banks’ bills in BT item 42 and the market loan/advance in BT item 23D. Institutions accepting these bills but on-selling them should report this business within BT item 41. However, there is currently no appropriate line within Item 41 to detail this business and, as a temporary measure, it should be reported in BT item 41B ("Acceptances: Monetary financial institutions in the UK other than banks and building societies"). A new box within BT item 41 will be introduced at a later stage and further details provided in due course.
Institutions holding bills drawn by a UK bank and accepted by other UK banks should report these assets in BT item 26DA or BT item 26DB depending on whether they are eligible or ineligible for rediscount at the Bank of England, ie the same treatment as for existing bills accepted by other UK banks.
2. Use of repo by the Bank of England to "mop" up money market surpluses (effective end-April reporting)
With effect from 3 April 2000 (following the transfer of Exchequer cash management to the Debt Management Office) the Bank of England will conduct any necessary open market operations to absorb surpluses in the money market by undertaking repo agreements.
Facilities already exist for banks to report these repos on the Form BT. Reverse repos conducted with the Bank of England should be reported in item BT 30A "Claims under sale and repurchase agreements (reverse repos) of British government sterling securities – Bank of England", for gilts or BT 31A "Claims under sale and repurchase agreements (reverse repos) of other paper – Bank of England", for those in any other security.
3. Reminder: classification of the Debt Management Office
The Debt Management Office (a Central Government body) has now started bilateral dealings with money market counterparties. Reporting institutions are asked to take care in distinguishing between dealings with Debt Management Office and with the Bank of England – see statistical notice 1999/07.
Bank of England
Monetary & Financial Statistics Division
24 March 2000
