Statistical Notices to Reporting Banks 2001/02
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 e-mail Amanda White (tel. 020 7601 5500).
- RepoClear: inclusion of Jumbo Pfandbriefe repos and cash bonds (effective immediately)
- Guidance on the reporting of TESSA capital rollovers (effective immediately)
- Guidance on the reporting of collateralised mortgages (End-February 2001 reporting)
- Scottish seminar (respond by 9 March 2001)
- Classification of Accounts Guide (update)
1. RepoClear: inclusion of Jumbo Pfandbriefe repos and cash bonds (effective immediately)
In mid-January, the London Clearing House announced that, RepoClear, its centralised clearing facility for repos backed by German, Belgian, Italian, Austrian and Dutch government bonds, would be extended to include Jumbo Pfandbriefe repos and cash bonds. Further to the guidance set out in statistical notice 2000/01, banks clearing repos through RepoClear and already reporting net positions with the London Clearing House on Bank of England returns are asked to extend their positions to include repos backed by bonds with immediate effect.
Banks switching to this reporting in the future are reminded to report their net positions with the London Clearing House as repos or reverse repos with other UK residents (Items 7H or 31H on the Form BT) with a sectoral classification of financial corporations (Items 7H1 or 31H1 on the Form BE), and an industrial classification of other activities auxiliary to financial intermediation (Item 17B on the Forms AD and AL).
Institutions should also notify Jenny Dawuda via e-mail at jenny.dawuda@bankofengland.co.uk or on 020 7601 5600, providing details of gross positions and counterparties for that month only so that distortions to calculated flows can be removed from the aggregate data.
2. Guidance on the reporting of TESSA capital rollovers (effective immediately)
From 1 January 2001, TESSAs began to reach final maturity. Individuals holding these maturing TESSAs have the option to roll the capital invested into a TESSA-only ISA, cash mini ISA or cash component of a maxi-ISA without utilising any of the annual cash ISA allowance.
Reporting institutions are asked to report these TESSA capital rollovers in the current ISA box on Form BT (item 3HC).
3. Guidance on the reporting of collateralised mortgages (End-February 2001 reporting)
Lending secured on dwellings (excluding bridging loans) is identified separately in Form BE item 29D3B, Q1(D) Section A, and QX item XFKB. It is currently defined as loans to individuals which attract the 50% weighting for capital adequacy purposes, and this is explained, for example, on page 1 of the notes to Form BE.
Where a bank enters into, for example, a credit default swap on mortgage assets, the latter will attract a risk weighting based on the counterparty to the swap rather than the nature of the asset. In order that such mortgage assets continue to be reported in Form BE item 29D3B, etc, the definition of these items has been amended to cover loans to individuals which attract the 50% weighting for capital adequacy purposes, or would do so were there no collateral, guarantee or netting reported in Appendix A-III to Form BSD3.
Revised definitions for Forms BE, Q1(D) and QX definitions are enclosed for insertion in your yellow folder.
Should it be necessary to reclassify assets into Form BE item 29D3B, etc as a result of this notice, please do so as at end-February 2001 reporting, and notify Graham Clark of the sum involved and where it was reported previously. Any questions on this issue should also be addressed to him. He can be contacted at the address on the front of Form BE, by telephoning 020 7601 5356, faxing to 020 7601 5395, or e-mailing graham.clark@bankofengland.co.uk .
4. Scottish seminar (respond by 9 March 2001)
Following the intermediate banks briefing seminar held in September 2000, we are planning to run one in Scotland aimed primarily at those who were previously unable to attend the London seminars. This will be on Thursday 24 May at the Royal Bank of Scotland premises in Edinburgh.
The seminar is expected to last from 11am – 4pm and a buffet lunch will be provided. We plan to tailor the seminar towards the A3 and BP forms, but this may be extended to cover the EIR and Q1D forms depending on customer demand.
If you wish to attend, please complete this form and return by post, e-mail or fax by 9 March 2001.
Please note that we intend to hold another intermediate seminar in London later this year.
5. Classification of Accounts Guide (update)
A revised edition of the entire Classification of Accounts Guide can be found here. Outlined below are specific areas we wish to draw your attention to.
i) Change in classification of certain public sector bodies: We have been notified of changes in the classification of certain public sector bodies. In the main these bodies have moved from one public sector classification to another, for example, across UK central government, UK local government and UK public corporations, but others have moved from UK central government to the Non-Profit Institutions Serving Households sector. You are asked to view Part III, pages 9, 10 and 12 for details of these reclassifications. Please could reporting institutions provide details of all reclassifications of business resulting from these changes to Jenny Dawuda when submitting the next Form BT.
ii) Limited liability partnerships: Bodies incorporated under the Limited Liability Partnerships Act 2000, which received Royal assent on 20 July 2000 and is due to come into effect on 6 April 2001 subject to a resolution of each House of Parliament, should be treated in the same way as those established under the Limited Partnerships Act 1907. Therefore in Forms BE and QX they should be classified as financial or non-financial corporations as appropriate. There is currently no intention for them to be identified separately in Form QX or any other return.
iii) List of securities dealers: As notified in the Addendum to Statistical Notice 2001/01, the securities dealers list issued in January 2001 contained errors. A new list will be distributed in a future notice and included in the Classification of Accounts Guide in due course. Should reporting institutions have any queries in the meantime please contact the Domestic Banking Statistics helpdesk on 020 7601 5360.
iv) List of countries: Part V has been updated and now includes the two and four country code identifiers for electronic reporting.
Bank of England
Monetary & Financial Statistics Division
23 February 2001
