Statistical Notices to Reporting Banks 2005/08
Statistical Notices should be received by all those responsible for the completion of Bank of England returns. To amend the circulation list please contact Stuart Jordeson (Tel. 020 7601 3644).
- Amended definition of eligible liabilities (effective end-March 2006 reporting)
- Balance sheet reporting of depreciation (clarification)
- Reporting of Form CL (update)
- Rolling Review of forms (update)
- Contents page for Yellow Folder (update)
1. Amended definition of eligible liabilities (effective end-March 2006 reporting)
The Bank will be making significant changes to the way it carries out its sterling money market operations next year. A central feature of these changes is the introduction of voluntary reserves which banks and building societies will be able to place with the Bank. Guidance on reporting the new voluntary reserve accounts, and other facilities resulting from the reforms, will be provided ahead of implementation. These will be clarifications of the definitions and will not necessitate any changes to the forms or validations. The definition of Eligible Liabilities (ELs) is however being amended. This is principally to ensure that the voluntary reserves do not count as an offset in the calculation of ELs for Cash Ratio Deposits and, to aid clarity and consistency, the opportunity has been taken to remove all direct positions with the Bank from the calculation.
The current definition of ELs is set out in the Cash Ratio Deposit (Eligible Liabilities) Order 1998 – Statutory Instrument 1998 No.1130. Following HM Treasury’s consultation with all banks and building societies, (via a letter dated 13 July 2005), an amending Order has been laid before Parliament. The amending Order 2005 No.3203 is due to come into force on 1 March 2006, to coincide with the earliest possible date within the proposed window for the introduction of voluntary reserves (currently March to June 2006 inclusive).
The calculation of eligible liabilities (BT Item £46) has been amended
to reflect this change (BT Items £2A, £3A, £21B and £44
have been removed from the calculation), and an amended Form BT along with
amended pages of the Form BT validations and definitions are attached for
insertion in the Yellow Folder. The definition of modified Eligible Liabilities
(BT£46A) remains unchanged.
If you have any queries relating to these changes please
contact Anne Smith (Tel.
020 7601 4216) or Sarah
Waddington (Tel.
020 7601 5505).
 |
Form BT |
|
Validation Form BT |
|
Form BT Validations |
|
Form BT Definitions |
 |
Money Market Reform |
2. Balance sheet reporting of depreciation (clarification)
A number of reporters and software houses have contacted us in response to the
guidance on this topic in Statistical Notice 2005/05. The intention of that notice
was to confirm that fixed assets recorded under BT Item 35B should be reported
net of (after) depreciation and that such depreciation would then be reflected
within internal accounts under BT Item 19CD, but only indirectly as a result
of its effect on profit and loss entries.
The wording in Statistical Notice 2005/05 nevertheless led to some confusion over our intended treatment. Having reviewed the issue, we consider that the revised wording in the Yellow Folder definitions requires further amendment as below, and that associated amendments are also needed for the instructions to BT Item 19CD, BT Item 35B and QX Item 19CD5. We apologise for any confusion as a result of the earlier Notice.
“Fixed assets such as premises and equipment
should be reported net of (after) any depreciation, in
accordance
with IFRS and equivalent guidance. The flow of
depreciation will then impact on the profit and loss account,
and therefore,
accumulated depreciation would only be indirectly
included under Capital and other internal accounts (Item
19CD) by
way of the effect on profits ”
Amended pages of the Forms BT and QX definitions are
attached for insertion in the Yellow Folder. If you
have any queries
relating to this guidance please contact Martin
Daines (Tel. 020 7601 5600).
|
Form BT definitions |
|
Form QX definitions |
|
Statistical Notice 2005/05 |
3. Reporting of Form CL (update)
We would like to remind reporters that the new
version of Form CL should be submitted for the
first time for end-December 2005 data reporting,
following the rolling review of Forms CH and A2.
Details of these changes were outlined in Statistical
Notice 2005/03 (dated 13 May 2005).
As mentioned in that notice, the region lists for
the Central Monetary Institutions in Section III.12
of the Classification of Accounts Guide will not
be required for the Form CL and these groupings
have been removed, with the exception of the European
Union list which is used for Form PL. Updated pages
of the Classification of Accounts Guide are attached
for insertion in the Yellow Folder.
It has been pointed out to us that three “countries” have
been omitted from the Supplementary Items of Section A on
the version of Form CL that should be used for end-December
2005 reporting. The three “countries” are European
International Organisations, Cambodia and Cameroon.
This has now been rectified and an amended version of Form
CL
is available on our website.
If you have any queries relating to these changes
please contact Robert
Edwards (Tel.
020 7601 5573).
|
Statistical Notice 2005/03 |
|
Form CL |
|
Classification of Accounts guide |
4. Rolling review of forms (update)
The timetable for the Rolling Review of forms published in Statistical Notice 2005/01 is being revised. For reviews starting in 2006, in addition to Forms CA, CC, Q1(D), MM, MQ and CL (population only), we are now also planning to review Form B1. This form was originally scheduled for review in 2008 but is being bought forward so that it can be reviewed in conjunction with Form CC. As both forms contain similar information, we believe that there are advantages in reviewing them at the same time.
Should you have any queries relating to the Rolling Review of forms please contact Kerry Baker (Tel. 020 7601 3754).
5. Contents page for Yellow Folder (update)
|
Updated contents page for Yellow Folder |
Bank of England
Monetary & Financial Statistics Division
2 December 2005
