Statistical Notice 2017/06

Statistical Notices update the definitions and guidance contained in the Banking Statistics Yellow Folder.
Published on 04 August 2017

Clarification of the reporting of the Apprenticeship Levy, impairment provisions under IFRS 9 and manufactured payments on debt securities on the Form PL

Apprenticeship Levy

The introduction of the Apprenticeship Levy in April 2017 has prompted a need to clarify the reporting of the Levy on the Form PL. Any payments made toward the Levy should be reported under tax (PL16). This amount should be reported net of the annual allowance offset and net of any benefits accrued by participation in the resulting schemes funded by the Levy. Where possible, data should be reported on an accruals basis.

This treatment should be implemented with immediate effect.

Reporting of impairment provisions under IFRS 9

Due to the changes in the reporting of impairments under IFRS 9 it is necessary to provide clarification on the reporting of impairment provisions on the Form PL. The introduction of 12-month expected credit losses is expected to increase the overall level of provisions. Under the assumption that each new provision is counterpart by sector, new provisions should be reported as ‘specific provision charge’ allocated to the appropriate sector. This will allow the data to show a sector breakdown for the step change in the overall level (PL20B).

Further information on the impact of IFRS 9 on statistical reporting, including the treatment of impairments, can be found within the related Bankstats Article

This treatment should be implemented with immediate effect.

Change in guidance regarding reporting of payments of manufactured interest on debt securities

Current guidance on the reporting of manufactured payments on debt securities (manufactured coupons) stipulates manufactured coupon payments should not be reported on Form PL. In line with international standards, manufactured coupon payments should now be reported as negative interest receipts on bonds and FRNs. Thus ‘Interest receivable on bonds and FRNs’ (PL1D) should now be reported net of any manufactured interest paid on debt securities

This change in treatment should be implemented with effect from 2018 Q1 reporting.

If there are any queries regarding any of the above or if any of the above is not possible to implement please email DSDPLTeam@bankofengland.gsi.gov.uk.

Green Notice – (nil return)

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