Statistical Notices to Reporting Banks 2001/06
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 Mark Duffy via e-mail mark.duffy@bankofengland.co.uk or on 020 7601 5624.
- Amendments to the Bank of England Act 1998 (effective immediately)
- New Euro area monetary statistics (information)
- Publication schedule (effective January 2002)
- Best endeavours (effective September 2002, action required March 2002)
- Building Societies List (update)
- Contents pages for Yellow folder (update)
1. Amendments to the Bank of England Act 1998 (effective immediately)
The Bank of England Act 1998 has been amended with effect from 1 December 2001 (or ‘N2’) to reflect the coming into force of the principal provisions of the Financial Services and Markets Act 2000 (‘FSMA’) on that date. The main changes are necessitated by the need to remove references to legislation that has been superseded by FSMA, for example the Banking Act 1987.
In relation to section 17 of the Bank of England Act 1998, the pre-N2 categories of banks and building societies (then set out in sections 17(3)(a)-(c)) from which the Bank could obtain information have been amended and the corresponding categories now comprise ‘deposit-takers’ with a place of business in the United Kingdom. In essence, a firm is a deposit-taker if it has permission under Part IV of FSMA to accept deposits or is an inwardly passporting EEA credit institution which has permission to accept deposits through a UK branch.
There has also been a similar consequential amendment to the definition of ‘eligible institution’ for the purposes of the CRD regime under section 6 and schedule 2 of the Bank of England Act 1998. The new definition is the same as the section 17 deposit-taker definition referred to above but excludes, broadly, credit unions, insurers which have an incidental deposit-taking permission and friendly societies.
It is not expected that the coming into force of FSMA and the related consequential amendments to section 17 and schedule 2 of the Bank of England Act 1998 will result in a substantial change (or any change at all) to the pool of reporting institutions for the purposes of section 17 and schedule 2. Accordingly, all institutions previously required to submit returns to the Bank of England should continue to do so unless specifically informed in writing by the Bank of England that reporting may cease. Any institutions required to report for the first time will be contacted separately in accordance with our normal procedures.
Various sections of the Banking Statistics (yellow) folder have been updated to reflect these changes and copies of the relevant pages can be found here (class02p2410, class03p3, class04p2467, class05p10, def_btp14, def_genep23). In the post ‘N2’ world we hope to issue, in the near future, a definitive list of institutions which comprise the "UK banks" sector as part of the Classification of Accounts guide. In the meantime please use the list of banks authorised to carry out deposit taking in the UK as at 30 November which is attached here.
2. New Euro area monetary statistics (information)
The European Central Bank (ECB) announced on 22 November1 a new Regulation to introduce the collection of enhanced monetary statistics. The ECB press release is attached here. Plans were also announced for a further Regulation concerning statistics on Euro area interest rates on deposits and loans vis-à-vis households and companies. The new monetary data will strengthen the analysis of monetary conditions in the Euro area and will begin at January 2003. The key features are:
- A breakdown of Euro area deposits and loans by the key sectors
of the economy
- Good quality flow statistics for credit
- A fuller range of monetary data collected on a monthly frequency
The ECB intends to keep the reporting covered by this Regulation stable for at least five years. The Bank of England has been reviewing its present suite of EMU statistical returns in the light of the new ECB Regulation (see Statistical Notice 2001/04 for further detail). Our present intention is to update the reporting forms, in consultation with the British Bankers’ Association, to ensure consistency by monetary financial institutions in the UK in the event of UK entry into the monetary union. If you have any comments or queries regarding the UK’s statistical requirements from UK entry into EMU, please contact Richard Walton at richard.walton@bankofengland.co.uk or on 020 7601 5453.
1 Press Release: New ECB regulation in the field of money and banking statistics: 22 November 2001
A list of dates of future statistical releases and other MFSD publications can be found here.
4. Best endeavours (effective September 2002, action required March 2002)
When the current statistical returns were introduced in 1997 it was recognised that some of the required data were not readily derivable from banks' existing systems. The concept of reporting on a 'best endeavours' basis was incorporated into specific definitions and acknowledged in paragraph 1 of the General Notes and Definitions. Reporting on a best endeavours basis ceases from September 2002 for all forms2. Any banks that may not be able to meet this timetable should write to Anne Smith, Manager, Domestic Banking Statistics at the usual address by the end of March 2002 outlining the areas and size of any data that you may wish to compile using best endeavours after September 2002. An outline plan including a firm timetable for introducing robust systems to report correctly must also be included.
2 With the exception of the Effective Interest Rate return where best endeavours may be used up to 2004 at the latest; the Forms B1 and C1 where the reporting of market revaluation of claims and write-offs of loans to non-residents may remain on a best endeavours basis until further notice; and Forms A3, BP and BG where a degree of estimation will continue to be acceptable, within the statistical context for which the information is required.
5. Building Societies List (update)
The list of building societies has been updated. Page 3 of the Sector Definitions section of the classification of accounts guide is attached here.
6. Contents pages for Yellow folder (update)
Can be found here.
Bank of England
Monetary & Financial Statistics Division
12 December 2001
