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Statistical Notices to Reporting Banks 2002/09

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 Adam Greenland via e-mail at adam.greenland@bankofengland.co.uk or on 020 7601 5574.

  1. Form PL (replacement to Forms A3 and BP) and Form ER (updated from EIR) (effective January 2004)
  2. Contents page for the Yellow Folder (update)

Rationale for introducing a new income and expenditure return and revising the effective interest rate return

1. Form PL (replacement to Forms A3 and BP) and Form ER (updated from EIR) (effective January 2004)

As announced in Statistical Notice 2002/06 dated 4 September, a new income and expenditure return has been developed together with an updated Form EIR, to be called Form ER. Following further discussions over the details of these changes with the BBA’s Banking Statistics Advisory Panel, the forms have now been finalised. The final version of the forms and definitions are being issued now to provide sufficient time for preparations, including coding of IT systems, to ensure implementation in January 2004. The first PL return for quarterly reporters will be for March 2004, and, for annual reporters, December 2004. The first Form ER will be for January 2004 – banks required to complete the revised form have been individually advised.
All banks’ reporting systems are expected to be ‘coded up’ as outlined previously. The concept of ‘coding-up’ is that information should be automatically retrieved from IT systems, thus reducing the manual element of reporting and increasing the consistency of the data provided.
Certain Form PL items will be reconciled to Form ER items (see list of cross-form checks attached). Whilst, initially, tolerances of up to 5% either way will be allowed in these checks by reporting systems, any significant differences between the relevant items will require explanation.
Since Statistical Notice 2002/06, several changes have been agreed through discussions with the BBA.

Changes to the PL form since Statistical Notice 2002/06 are:

(i)The addition of boxes for “monetary financial institutions other than banks and building societies” (items 1BD and 1CD) in the sector breakdown of interest to be consistent with ECB requirements on the balance sheet. Initially, these items should be zero and, as with these items on the balance sheet, banks will be advised in due course when reporting is required. See Section III.2(c) in the Classification of Accounts guide.
(ii) The extension of the implementation deadline for the sector detail of fees and commissions (item 5) until the start of 2005. However, banks are asked to start supplying this detail if it becomes available during 2004.
(iii) The removal, for the time being, of the requirement to report the non-resident breakdown into banks and other financial intermediaries. This may need to be completed at some point, though the earliest implementation date will be 2005.
(iv) The removal of the Reconciliation matrix to a separate requirement (outside of the Yellow Folder) to be completed by the larger UK-owned banking groups only. These groups will be informed of our request for information individually.
(v) A sector split has been added under recoveries and write-offs (items 20AC and 20AE respectively) at the Advisory Panel’s suggestion.

Changes to the PL definitions since Statistical Notice 2002/06 are in the following areas:

(i) Net Spread Earnings (items 8AA-CA).
(ii) Reporting of interest flows on a net basis (items 1 and 2) where charged/paid net, in line with the basis of definitions for the ER return.
(iii)Financial Auxiliaries (items 1BEA-BEC).
(iv) Repo transactions (items 1C and 2C).

Changes to the ER form since Statistical Notice 2002/06 are:

(i) Items relating to non-financial corporations broken into public corporations and private non-financial corporations.
(ii) Reporting deadline now changed to 13th working day.
(iii) Average balances, interest flows and gross lending no longer required for APR items (128 and 129).

Changes to the ER definitions since Statistical Notice 2002/06 are in the following areas:

(i) New business items
(ii) Examples of instrument classification
(iii) Calculation of average daily balances
(iv) APR items
(v) Reporting of balances and interest flows on a net basis where charged/paid net

Attached is a brief note on the rationale for implementing the new forms in response to requests from a number of banks.

Consultation with the BBA is continuing with respect to the definition of Net Spread Earnings on the PL and APR data on the ER, but the BBA agreed that the definitions should be issued at this time to enable banks to consider their implementation plans more fully.

The Bank will be hosting a briefing seminar on the revised forms on Monday 31 March 2003. Details will follow in the New Year.
If you have any queries on the Form PL or the definitions please contact:

Martin Udy via email at martin.udy@bankofengland.co.uk or on 020 7601 4731
Neil Bush via email at neil.bush@bankofengland.co.uk or on 020 7601 3814
John Elliott via email at john.elliott@bankofengland.co.uk or on 020 7601 4174

If you have any queries on the ER form or definitions please contact:

Jonathan Bailey via email at jonathan.bailey@bankofengland.co.uk or on 020 7601 5479
Michelle Ryan via email at michelle.ryan@bankofengland.co.uk or on 020 7601 3555

Copies of Forms PL and ER, along with their definitions, internal validations and cross-form checks can be found by following the attached links [Form PL, Validation Form PL, PL Definitions, PL validations, Form ER, Validation Form ER, ER Defintions, ER validations].

The technical specification for the electronic reporting of the PL and ER for reporting banks and recognised software houses, along with Form PL and Form ER dividers for the Yellow Folder, will be available in the New Year.

2. Contents page for Yellow Folder (update)

Updated file here.

Bank of England
Monetary & Financial Statistics Division
17 December 2002

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