Balances with the Bank of England/UK Central Bank
Cash ratio deposits: On 1 June 1998 a statutory scheme came into effect whereby both banks and building societies with average eligible liabilities of £400mn or more were required to hold non-interest-bearing deposits with the Bank of 0.15% of their eligible liabilities in excess of £400mn. With effect from 1 June 2004 the limit for average eligible liabilities was changed to £500mn and deposits collected on banks eligible liabilities over £500mn. Adjustments to the amount of cash ratio deposits take place in June and December each year based on average eligible liabilities in the six months to April and October respectively.
Other: These comprise balances with the Bank of England other than cash ratio deposits.
Market loans (including repos)
UK banks includes all money (including correspondent balances, finance leasing and initial margin payments relating to futures and options contracts) lent to, or placed with, other UK banks (excluding the Bank of England); and bills drawn by other UK banks under acceptance credit facilities opened by the reporting institution has itself discounted. Overdrawn accounts are included under deposits.
UK banks' CDs, CP, etc include holdings of promissory notes and other short-term paper issued by other UK banks, and holdings of stocks and bonds having an original maturity of up to and including one year's original maturity which have been issued by other UK banks and holdings of commercial paper issued by UK resident banks.
UK building societies CDs etc. and deposits includes building societies' holdings of commercial paper issued by building societies and all deposits with building societies including finance leasing.
Non-residents includes all balances (including correspondent balances) with, and funds lent to, non-resident banks (except trade and portfolio investments); bills drawn by non-resident banks under acceptance credit facilities opened by the reporting institution which the reporting institution has itself discounted; and certificates of deposit, promissory notes, commercial paper and other short-term paper issued by non-resident banks and owned by the reporting institution.
Claims under sale and repurchase agreements (reverse repos) are also included in the sectoral categories and comprise cash claims arising from the purchase of securities for a finite period with a commitment to re-sell. Claims which arise when securities or other assets are purchased in exchange for other securities etc. are excluded. The amount of the claim (or its currency denomination) is determined by the cash consideration not the market value (or currency denomination) of the securities.
Treasury Bills are bills issued by the government.
Other bills comprise UK bank bills, local government and public corporation bills, together with holdings of non-resident bills, UK commercial bills, sterling commercial paper issued by UK and non-residents, and UK paper not included elsewhere. They exclude bills connected with lending under the special schemes for exports and domestic shipbuilding, and bills that the reporting institution has disposed of by rediscounting. Bills and notes are classified according to the currency in which they are drawn.
Advances (including reverse repos)
These include all balances with, and lending (whether against collateral or not) to, customers, not included elsewhere. They include amounts receivable under finance leases and the reporting institution's own acceptances which it has also discounted (except those drawn by other UK and non-resident banks, which are included in market loans). Own acceptances discounted are shown as advances to the party who has asked for the acceptance credit to be opened. Claims under sale and repurchase agreements are also included (except for non-residents which are included in non-resident market loans). Advances purchased by or assigned to the reporting institution under a transferable loan facility or similar arrangement are included, but loans where the borrower is a UK bank, a UK building society, a non-resident office of the reporting institution or another non-resident bank are reported under market loans. Provisions for bad and doubtful debts are not deducted. Where the reporting institution participates in (or acts as manager or co-manager of) a loan financed by more than one institution, only the reporting institution's participation for its own account is included, the loan being classified according to the ultimate borrower. Assets leased out under finance leases are also included here. See the note below on residential status for the definition of UK and non-residents.
Advances to UK public sector and other UK residents includes all medium and long-term lending (i.e. with an original maturity of two years or over and claims under sale and repurchase agreements).
Advances to non-residents include all lending for exports under ECGD bank guarantee (excluding any amounts refinanced). Claims under sale and repurchase agreement are excluded here.
These include all securities beneficially owned by the reporting institution. They include securities which the reporting institution has sold for a finite period, but with a commitment to repurchase (i.e. repos), but exclude securities which have been bought for a finite period, but with a commitment to resell (i.e. reverse repos). Securities are defined as marketable or potentially marketable income-yielding instruments including bonds, FRNs, preference shares and other debt instruments but excluding certificates of deposit and commercial paper which are shown as market loans.
UK government bonds include all bonds issued by the central government.
Investments in UK banks include Bank of England securities.
Investments in non-residents include deposits (including retained profits) with non-resident offices which have been invested in fixed assets such as premises and equipment.
Other assets comprise items in suspense and collection including all debit balances not in customers' names but relating to customers' funds rather than to the reporting institution's own internal funds (e.g. debit balances awaiting transfer to customers' accounts) and balances awaiting settlement of securities transactions. Collections comprise cheques etc. drawn, and in course of collection, on other UK banks and building societies. They include cheques that have been credited to customers' accounts but are held overnight before being presented or paid into the reporting institution's account with another UK bank or non-resident bank; they exclude cheques already passed to other UK banks for collection (these are included under 'Market loans' to UK banks). They include all collections on non-resident banks and items in transit to non-resident offices of the reporting institution, where the reporting institution is acting as principal and not as an agent for collection and where it has already given credit or value for the items. The series also includes accrued amounts receivable (gross amounts receivable but which have not yet been received and include interest and other revenues), holdings of gold bullion and gold coin (in 'Other currency assets'), other commodities (e.g. silver), together with land, premises, plant and equipment and other physical assets owned, or recorded as such, including assets leased under operating leases.
For statistical purposes, the United Kingdom comprises Great Britain and Northern Ireland, but from end-September 1997, excludes the Channel Islands and the Isle of Man. UK residents include: HM Government and other UK public authorities; enterprises which produce goods and/or services in the United Kingdom, including non-resident enterprises' branches and subsidiaries located and operating in the United Kingdom; individuals permanently resident in the United Kingdom (including temporary residents who have stayed, or who intend to stay, for a year or more) together with individuals normally resident in the United Kingdom who are overseas for less than a year; and members of UK armed forces and officials of HM Government serving overseas, as well as their dependants.
Non-residents include: non-resident governments, together with their diplomatic and military offices and representatives in the United Kingdom; international organisations, including their branches or representatives in the United Kingdom; UK representative offices of non-resident banks; non-resident offices of the reporting institution; enterprises located and operating overseas, including branches and subsidiaries of businesses which are themselves UK residents; and persons (including those of UK origin) who are residing outside the United Kingdom for a year or more.