Statistical Notices to Reporting Banks 2002/01
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 Emily Carver via e-mail at emily.carver@bankofengland.co.uk or on 020 7601 5624.
- New Euro area monetary statistics (information)
- Classification of Railtrack plc (reminder)
- Form DQ reporting criteria (effective immediately)
- List of Banking International Organisations update (effective immediately)
- Eligible banks list update (effective immediately)
- Amendment to reporting schedule (effective immediately)
- Amendment to publication schedule (effective April 2002)
- Amendment to Form A3 definitions (effective end-June 2002 reporting)
- Additional cross-form validations between Form QX and Forms CC and CL (effective end-June 2002 reporting)
- Cross-form validations between Forms DQ and QX (effective end-September 2002 reporting)
- Contents page for Yellow folder (update)
1. New Euro area monetary statistics (information)
The European Central Bank announced on 20 December (via press release "New ECB regulation on MFI interest rate statistics") a new Regulation for the collection of harmonised interest rate statistics. The information will be used in the analysis of monetary transmission and for monitoring financial stability in the Euro area.
The Bank of England already collects interest rate statistics from a sample of banks on Form EIR. We are reviewing this return in the light of both the ECB Regulation and the Bank's internal needs for more comprehensive information. Reporting banks will be consulted over the coming months, via the British Bankers' Association, on plans to revise Form EIR.
Should you have any queries relating to these new Euro area monetary statistics or the earlier balance sheet statistics, please contact Richard Walton via e-mail at richard.walton@bankofengland.co.uk or on 020 7601 5453. If you have any queries relating to Form EIR please contact Jonathan Bailey via e-mail at jonathan.bailey@bankofengland.co.uk or on 020 7601 5479.
2. Classification of Railtrack plc (reminder)
We would like to remind reporters that while the future of Railtrack plc is uncertain, it should continue to be classified to "Other UK residents" in Form BT, "All non-financial corporations other than public corporations" in Form BE, and "Transport, storage and communication" in Forms AD and AL (Item 9) until further guidance is issued, as and when necessary.
3. Form DQ reporting criteria (effective immediately)
The Bank of England has recently completed a review of derivatives business reported by UK banks, using summary data on gross positions reported on Form QX, in all currencies, in order to establish formal reporting criteria for Form DQ.
As a result of this review the threshold for reporting Form DQ has been determined as a level of £1bn of total gross liability positions in financial derivatives, reported on Form QX (item 19BL) for two consecutive quarters. However, because of the inherent volatility of the derivative market a degree of discretion may be applied in determining when reporting institutions will be requested to join or leave the reporting panel.
All reporting institutions affected by this change have been notified individually of their new reporting requirements. An amended reporting panel criteria for statistical returns can be found here for insertion in the yellow folder.
Should you have any queries relating to Form DQ please contact Graham Semken either via e-mail at graham.semken@bankofengland.co.uk or on 020 7601 5908.
4. List of Banking International Organisations update (effective immediately)
The list of Banking International Organisations shown in the sector definition section of the classification of accounts guide has been updated to bring it into line with guidance issued by the Bank for International Settlements (BIS). The list has been expanded to include the International Monetary Fund (IMF), the International Development Association (IDA) and the International Finance Corporation (IFC). These institutions have been deleted from the list of Non-Banking International Organisations.
Updated pages 18 and 20 of the sector definition section of the classification of accounts guide are attached for insertion in the yellow folder. If you have any queries relating to this classification please contact Pat O’Connor via e-mail at pat.o’connor@bankofengland.co.uk or on 020 7601 4450.
5. Eligible banks list update (effective immediately)
The Gilt Edged & Money Market area of the Bank recently re-issued the list of institutions whose acceptances are eligible for discount at the Bank of England. An updated Part V.3 of the Classification of Accounts guide can be found here for insertion in the yellow folder.
6. Amendment to reporting schedule (effective immediately)
The current reporting schedule has an error on it. Form RSL should be reported for end-May and not end-April, a revised schedule is attached to this notice.
7. Amendment to publication schedule (effective April 2002)
The publication date of the Capital Issues Press Release will change from the ninth to the fourteenth working day with effect from the issue due in April 2002. This will allow the inclusion of additional data that have hitherto been received after our deadline. An amended publication schedule can be found here.
If you have any queries relating to this press release please contact Colin Rawlings via e-mail at colin.rawlings@bankofengland.co.uk 020 7601 5949.
8. Amendment to Form A3 definitions (effective end-June 2002 reporting)
Form A3 aims to identify elements of foreign exchange and securities’ dealing income as, separately, net spread earnings and realised/unrealised profits. Net spread earnings (item 5 on the form) aims to measure service income (value added) from banks’ dealing activities for National Accounts purposes.
Net spread earnings should be calculated as the difference between the sale/purchase price and the mid-market price at the time of the transaction. After discussions with a number of banks, it is clear that many banks are currently unable to separate net spread earnings from other dealing profits.
In order to ensure standardisation in reporting, the A3 definitions for the treatment of foreign exchange and securities’ dealing income are being changed. Item 5 on the A3 return should include only net spread earnings where these are separately identifiable. Where banks are unable to separate out net spread earnings from holding gains/losses, these should be reported in the reconciliation items 10B (for unrealised) and 10C (for realised profits). This does not affect banks who are able to capture accurate data for Item 5.
Amended Form A3 definitions are attached for insertion in the yellow folder. Should you have any queries relating to Form A3 please contact Neil Bush via e-mail at neil.bush@bankofengland.co.uk or on 020 7601 3814.
9. Additional cross-form validations between Form QX and Forms CC and CL (effective end-June 2002 reporting)
Following a review of the cross form validations between Forms QX and Forms CC and CL, some additional validations have been included within the validation sheets. Amended pages for cross form validations for all three forms (QX, CC, CL) are attached for insertion in the yellow folder. A tolerance of up to and including 3 will be accepted for these cross-form validations.
Should you have any queries relating to these changes please contact Pat O'Connor either via e-mail at pat.o'connor@bankofengland.co.uk or on 020 7601 4450.
10. Cross-form validations between Forms DQ and QX (effective end-September 2002 reporting)
The following cross-form validations have formed part of the Form DQ reporting guidance from its introduction, linking the reporting of the gross asset and liability positions (ideally at market value) in both Form DQ and Form QX.
DQ£1 + DQ£60 = QX£19BL
DQE1 + DQE60 = QXE19BL
DQC1 + DQC60 = QXC19BL
DQ£2 + DQ£68 = QX£19BA
DQE2 + DQE68 = QXE19BA
DQC2 + DQC68 = QXC19BA
During the period of "best endeavours reporting" these validations have not been applied rigorously. However, with the cessation of "best endeavours" reporting (see Statistical Notice 2001/06), gross positions in outstanding derivatives contracts should be reported on a mark-to-market basis on Form QX, to be consistent with the detailed reporting on Form DQ. Updated pages for Form QX cross-form validations are attached for insertion in the yellow folder. A tolerance of up to and including 3 will be accepted for these cross-form validations.
Banks are also reminded that no checks are applied to confirm matching values for "net positions in financial derivatives" (item 19B) in forms QX and BT. First reference to this change was included in the Statistical Notice 1999/04.
If you have any queries relating to Form DQ, please contact Graham Semken either via e-mail at graham.semken@bankofengland.co.uk or on 020 7601 5908.
11. Contents page for Yellow folder (update)
Attached.
Bank of England
Monetary & Financial Statistics Division
21 February 2002
