Transactions between UK banks are netted and the resulting domestic sterling and foreign currency interbank differences are allocated to sectors following a detailed investigation of the causes (see page 101 of June 1992 Economic Trends), and various adjustments are made to the figures on consolidation to avoid double-counting.
Data are available monthly from 1975 to Q1 1998. The data are available not seasonally adjusted and seasonally adjusted. Publication of new data ended after Q1 1998 due to the replacement of the dataset by the Monetary financial institutions' consolidated balance sheet. Publication of this data will usually occur on the 21st working day following the end of the period in the Monetary financial institutions' consolidated balance sheet tables (B2.1 to B2.4) or subject to the published News and Events.
Banks in the United Kingdom consolidated balance sheet is only updated to 1998 Q1, after which it is replaced by the Monetary financial institutions' consolidated balance sheet.
All UK-resident banks reported data directly to the Bank of England on the form BS on a quarterly basis prior to September 1997. Banks with total assets over £100mn or eligible liabilities over £10mn reported data on a monthly basis as well. From September 1997, All UK-resident banks report data directly to the Bank of England on the form BT on a quarterly basis. Banks with UK private sector deposits or loans over £1,000mn or eligible liabilities over £400mn report data on monthly basis as well. A further sector breakdown of business with UK residents is also provided on the form BE on a monthly basis, by UK-resident banks who report the form BT on a monthly basis.
All data are subject to revision if and when new information becomes available. Any revisions to this data set will be highlighted to users. For more information on revisions practices see further details about revisions.
Banks' consolidated balance sheet data comprises of both the liabilities and assets of all UK resident banks other than the Bank of England.
Deposits include estimated holdings of banks' certificates of deposit, commercial paper, bonds, FRNs and other instruments of up to and including five years' original maturity and, from December 1995, liabilities arising from repos.
Non-residents deposits include estimated non-residents holdings of negotiable dollar and sterling certificates of deposit. Deposits denominated in currencies other than sterling include all or part of the foreign currency interbank difference (100% up to September 1986, 85% from October 1986 to October 1992, 60% thereafter).
Private sector deposits, from end-1986, sterling deposits directly include 95% of the sterling interbank difference. The remaining 5% is allocated to transits partially affecting deposits (see Transit and suspense items). Also from end-1986, deposits denominated in currencies other than sterling include part of the foreign currency interbank difference (15% from October 1986 to October 1992, 40% thereafter).
Transit and suspense items
Transit items appear in banks' balance sheets both as credits and debits (e.g. standing orders or cheques in course of collection). Suspense items relate to customers' funds that are not held in customers' names.
When banks' figures are aggregated, these items may give rise to double-counting of deposits received from customers outside the banking system or, where overdrawn or loan accounts are concerned, to the under-recording of total lending made to such customers. The data for deposits and loans are therefore, adjusted.
From February 2006:
- 70.4% and 3.6% of sterling credit transit items are added to non- interest-bearing deposits from the UK private and public sectors respectively. The remaining 23.6% and 2.4%, for UK private and public sectors respectively, is subtracted from advances.
- 72% of sterling debit transit items are subtracted from non-interest-bearing deposits from the UK private sector and 28% are added to advances to the UK private sector.
- The 5% of the sterling interbank difference associated with transits is allocated as 74% to deposits and 26% to advances from the UK private sector.
- 71% of sterling credit items in suspense are added to the UK private sector's non-interest-bearing deposits. The remaining 29% is subtracted from advances to the UK private sector.
- 67% of sterling debit items in suspense are subtracted from the UK private sector's non-interest-bearing deposits. The remaining 33% is added to advances to the UK private sector.
- For foreign currency transit items, the difference between credit and debit items is added to deposits from non-residents.
- 39% of foreign currency credit items in suspense are added to non-residents' deposits and 23% to UK private sector deposits. The remainder is subtracted from advances, 26% non-resident and 12% UK private sector.
- 36% of foreign currency debit items in suspense are subtracted from non-residents' deposits and 24% from UK private sector deposits. The remainder is added to advances, 24% non-resident and 16% UK private sector.
Further analysisA further analysis of the amounts outstanding is given in the Office for National Statistics' (ONS) Financial Statistics: the public sector is split there into central government, local government and public corporations throughout, and the private sector into other financial corporations, private non-financial corporations, and the household sector; within the household sector, a sub-sector comprising individuals, unincorporated businesses and non-profit institutions serving persons.
Valuation and BreaksAll data is reported in sterling, with foreign currency data converted to sterling at the middle spot sterling exchange rate at 4pm on the last working day of the month.
The figures for banks' transactions in liabilities and assets in foreign currencies (including gold) have been adjusted to exclude the estimated effect of movements in exchange rates.
Introduction of the monetary sector in 1981
The introduction of the monetary sector on 18 November 1981 created a break in the banking statistics series (see the article on page 531 of the December 1981 Quarterly Bulletin). Returns were provided by the banks on both the old banking sector basis and the new monetary sector basis for mid-November 1981. The information was used to construct split levels for end-December 1981. Changes in the series were calculated for the old banking sector up to and including 18 November 1981 for the monthly series and end-December 1981 for the quarterly series; after these dates, changes were produced for the new monetary sector. Before the introduction of the monetary sector, however, monthly figures for deposits with the Trustee Savings Banks and the larger finance houses, and those institutions' holdings of other money market instruments, were incorporated into the monetary sector. The term 'monetary sector' was replaced with 'UK banks' following Abbey National Building Society's conversion to a public limited company in July 1989 (see the August 1989 Quarterly Bulletin, page 353, for further details).
Details of breaks in series up to December 1988 are described in a Technical series paper entitled 'Breaks in Monetary Series' published by the Bank in February 1989. This paper was updated in Part 2 of the 'Bank of England Statistical Abstract 1993' published by the Bank in November 1993 and again in section B of subsequent Statistical Abstracts.
There are also breaks resulting from building societies which joined the banking sector, thus causing breaks in series.
- Abbey National Building Society converted to public limited company status in July 1989. The information has been used to construct split levels at that date (see the August 1989 Bulletin pages 352-353). (See the August 1989 Quarterly Bulletin pages 352-353 for further details.)
- Cheltenham & Gloucester Building Society joined the Lloyds Bank Group in August 1995
- National & Provincial Building Society transferred its business to Abbey National plc in August 1996
- Alliance & Leicester Building Society converted to public limited company status in April 1997
- Halifax Building Society converted to public limited company status in June 1997
- Woolwich Building Society converted to public limited company status in July 1997
- Bristol & West Building Society joined the Bank of Ireland Group in July 1997
- Northern Rock Building Society converted to public limited company status in October 1997
Monetary statistics and the monetary financial institutions consolidated balance sheet Docker, S and Willoughby, D (1999), Bank of England Bankstats (Monetary and Financial Statistics) article, July
Money and banking figures: forthcoming changes (QB 1981 Q4) pp.531-538 Bank of England Quarterly Bulletin, December