Statistical Notices to Reporting Banks 2000/07
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).
- Cash Ratio Deposits (effective immediately)
- Bradford & Bingley Building Society conversion to bank status (effective end-December 2000 reporting, ACTION required end-November 2000 reporting)
- Reclassification of the European Central Bank (effective end-November 2000 for monthly returns and end-December 2000 for quarterly, semi-annual and annual returns)
- Cross form validations between Forms A3 and BP (effective end-December 2000 reporting)
- Mortgage loans to UK individuals (effective end-January 2001 reporting)
- Reporting of business denominated in Greek drachma (effective end-January 2001 reporting)
- Banks briefing seminars (update)
- Contents page, reporting panel criteria and new dividers (update)
1. Cash Ratio Deposits (effective immediately)
Cash Ratio Deposits (CRDs) are non interest bearing deposits lodged with the Bank of England by eligible institutions (ie. banks and building societies), who have reported average eligible liabilities (ELs) in excess of £400 million over a six month calculation period.
The level of each institution’s CRD is calculated twice yearly (in May and November) at 0.15% of average ELs in excess of £400 million over the previous six end-calendar months. The next adjustment to CRDs is due to take place on Friday 1 December, based on data reported on BT item 46 (Total Eligible Liabilities) for the months of May 2000 through to October 2000. The deadline for revisions to ELs to be reflected in the 1 December adjustment is 5pm on Monday 20 November, call notices will be issued shortly thereafter.
Amendments to BT item 46 can be made via the usual contacts, but must be backed up by a written confirmation of the change. If you have any queries relating to CRDs please contact Sarah Waddington via e-mail at at sarah.waddington@bankofengland.co.uk or on 020 7601 5505.
2. Bradford & Bingley Building Society conversion to bank status (effective end-December 2000 reporting, ACTION required end-November 2000 reporting)
On 4 December 2000, Bradford & Bingley Building Society intends to convert to public limited company status. On that date a new authorised institution, Bradford & Bingley plc, will join the UK banking sector.
Reporting institutions with deposits from, and lending to, Bradford & Bingley plc, and holdings of financial instruments issued by Bradford & Bingley plc (such as certificates of deposit, bonds, floating rate notes, etc) are asked to reclassify this business from being with a UK building society to a UK bank in all statistical returns. This reclassification should be adopted commencing with forms completed as at end-December 2000.
The Bank also requires reporting institutions to complete a pro-forma to show the amounts of marketable instruments issued by, and deposits placed with, the Bradford & Bingley Building Society (and certain other information) classified in Form BT items 23G (certificates of deposit and commercial paper issued by building societies in the UK and deposits placed with them), 26EA (UK bills other than commercial paper, issued by building societies in the UK), 32B (investments in UK building societies) and 41A (UK building societies’ acceptances), as at end-November 2000. Nil returns are required. These should be submitted together with the end-November 2000 balance sheet. Electronic reporters should submit the proforma to the same deadline as their Form BT. Proformas can be sent either via post to the usual address marked to the attention of Sue Docker, Manager, Domestic Banking Statistics, or an Excel version of the proforma can be found here, and may be sent via e-mail to sue.docker@bankofengland.co.uk.
This information is required to ensure that, where changes in bank and building society assets and liabilities are calculated as the difference between end-November and end-December levels, appropriate adjustments can be made to derive true flows. Failure to make such adjustments would compromise the accuracy of published data. The Bradford & Bingley Building Society has given the Bank of England and the British Bankers’ Association formal written permission to request such information; a copy of the permission is available to any reporting institution by contacting the Domestic Banking Statistics Helpdesk on 020 7601 5360.
3. Reclassification of the European Central Bank (effective end-November for monthly returns and end-December 2000 for quarterly, semi-annual and annual returns)
In accordance with guidelines issued by the Bank for International Settlements, reporting institutions are advised that the European Central Bank (ECB) should be reclassified as a Central Monetary Institution (CMI) located in Germany. Reporting institutions were previously advised to report business with the ECB under EU institutions (Code EO), which is a subset of International Organisations. On Forms CC, CL, CH and A2 the ECB should be reclassified as business with a non-resident bank (including CMIs) located in Germany. On Forms B1 and C1, business with the ECB should be allocated to the Public Sector within the sector breakdown (in accordance with the treatment of other CMIs) and recorded against Germany in the country breakdown.
Reporting institutions are also advised that business with the ECB should be recorded as business with a non-resident CMI in part B of forms CC and CL, in section 2 of forms CH and A2 and on Forms BT, QX, CA and DQ. Updated pages 14 and 21 of the Sector Definitions section of the Classification of Accounts guide are attached.
4. Cross form validations between Forms A3 and BP (effective end-December 2000 reporting)
It has come to our attention that some of the cross-form validation rules for Forms A3 and BP need to be amended. We have not substantially changed these validation rules, or indeed added any new rules. All of the changes comprise replacing equal relationships in the equations with "equal to or greater/lesser than" relationships.
In some cases we are reverting back to a previous version of the cross-form validation rules between Forms A3 and BP. The latest change has resulted from a re-assessment of the relationship between direct investment income on Form BP and the total non-resident interest on Form A3.
Amended validations for both Form A3 (click here) and BP (click here) should be inserted in the yellow folder. Should you have any queries relating to these changes or have any difficulties complying with this for end-December 2000 reporting, please contact Will Kerry, External Finance Statistics at the usual address or via e-mail at will.kerry@bankofengland.co.uk or on 020 7601 4174.
5. Mortgage loans to UK individuals (effective end-January 2001 reporting)
Approvals of all mortgages
Where a customer intends to purchase a house or remortgage, only the sum approved for these purposes should strictly be entered in Q1(D) item XFKVAA or XFKVAB as appropriate, whilst any extra sum approved simultaneously to replace other debts or to finance home improvements, cars, holidays, etc should, where identifiable, be entered in item XFKVAC. One approval should be scored in item XFKNAA or XFKNAB and if applicable one in XFKNAC. Banks which have been asked to complete Section A of Form Q1(D), but are unable immediately to distinguish the house purchase/remortgage and other elements of composite approvals, should contact Graham Clark, Domestic Banking Statistics at the usual address or on 020 7601 5356 or via e-mail at graham.clark@bankofengland.co.uk.
Flexible mortgages
Flexible mortgages have some or all of the following options -
(a) The original loan can be increased up to an agreed limit by -
(i) making reduced monthly payments
(ii) making no monthly payments for up to eg two months per
year or six months throughout the life of the loan
(iii) taking further advances to replace other debts, or for
home improvements, cars, holidays, etc.
(b) Repayment can be accelerated by -
(i) increasing monthly payments
(ii) making lump sum payments
(c) Overpayments can be re-drawn
(d) The standard 12 months' repayments can be repaid in 10 monthly instalments
Banks should report all of the outstanding debt, including further advances, in BT item £29D and, assuming that the usual 50% weighting criteria described in the notes to Form BE are met, in BE item £29D3B.
Where a customer is granted a facility other than for house purchase or remortgaging, either at the same time as they are granted a facility for one of these purposes, or separately on application to the reporting bank, the approval should (where identifiable) be included in Q1(D) items XFKVAC and XFKNAC, which cover approvals of other advances. However, where the customer’s undrawn facility increases automatically by the sum of overpayments that they make, no approval should be included in these items.
Also in Form Q1(D), monthly repayments of flexible mortgages should, where the distinction can be made, be reported as follows –
Repayments up to the sums shown in indicative repayment plans
provided by the lender, which advise the borrower eg how much
would need to be repaid each month to clear the debt by normal
retirement age, should be recorded as regular repayments of
principal within item XFKBF.
That part of total monthly repayments in excess of the sums
shown in indicative repayment plans, but insufficient to clear
the whole debt, should be included as partial redemptions of
principal within item XFKBE.
Repayments sufficient to clear the whole debt should be entered
as full redemptions of principal within item XFKBD.
Banks which have been asked to complete Section A of Form Q1(D),
but are unable immediately to distinguish repayments of flexible
mortgages in this way, should contact Graham Clark, Domestic
Banking Statistics (contact details as above).
Interest receivable on flexible mortgage loans is generally recalculated on a daily basis, and this should be included in A3 item £2B. Overpayments will therefore usually result in an immediate reduction in the amount reportable in this item.
A full set of revised definitions to Forms BE, Q1(D) and QX are enclosed for insertion in the yellow folder.
6. Reporting of business denominated in Greek drachma (effective end-January 2001 reporting)
On 1 January 2001, Greece will become the 12th member of the Monetary Union. From that date, reporting institutions should report all business denominated in Greek drachma in the euro boxes of all statistical returns. Business denominated in Greek drachma is currently reported in the 'Other Currencies' boxes on these returns.
If banks have any difficulties complying with this for end-January 2001 reporting, please contact Anne Smith, Manager, Domestic Banking Statistics at the usual address or via e-mail at anne.smith@bankofengland.co.uk or on 020 7601 4216.
7. Banks briefing seminars (update)
Thank you for your interest in our recent statistical briefing seminars. The intermediate level seminar was twice oversubscribed and we therefore plan to re-run this seminar at a later date to accommodate those who missed out first time around. We have provisionally booked our conference facilities for the end of March 2001 and booking details will be posted in the next statistical notice.
8. Contents page, reporting panel criteria and new dividers (update)
Attached are an updated contents page and reporting panel criteria page. For copies of new dividers for Forms EIR and HI/HO please contact the Domestic Banking Statistics Helpdesk on 020 7601 5360.
Bank of England
Monetary & Financial Statistics Division
7 November 2000
