Statistical Notice 2020/09

Statistical Notices update the definitions and guidance contained in the Banking Statistics Yellow Folder
Published on 11 August 2020

1. Treatment of payment holidays on Form PL

We anticipate that many reporters will in the last few months have granted a significant number of payment holidays on loans. Clearly this has an impact on profit and loss. We aim to clarify here our expectation of how this will impact Form PL reporting.

Our preferred treatment on the Form PL is that the accrued interest is reported as normal under interest receivable, but that the modification loss caused by granting the payment holiday is recorded as a negative amount in exceptional items (PL14D).

This approach most effectively allows us to distinguish between the banking services which have been provided by reporters on an ongoing basis during this period – including where payment holidays have been granted – and the exceptional PL impact of the pandemic.

We would also like to highlight two additional issues:

  1. Any expected credit losses should be reported as usual on the provisions section of the Form PL. If you have any queries about this area of reporting please get in touch.
  2. We have set out, in a separate statistical notice, how we would like government coronavirus loan schemes to be treated. Please review this and endeavour to report in line with it. The essence of our guidance is that all interest receivable should be reported against the ultimate economic sector receiving the loan even if paid by the government, and that any fees incurred to participate in the schemes should be reported under fees and commissions payable (SN 2020/06).

Please get in touch if you have any questions about this: email DSDPLTeam@bankofengland.co.uk.

2. Green Notice (nil return)

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