# Regulation (EU) No 1071/2013 of the European Central BankShow full title

Regulation (EU) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary            financial institutions sector (recast) (ECB/2013/33)         

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# Regulation (EU) No 1071/2013 of the European Central Bank

# of 24 September 2013

# concerning the balance sheet of the monetary financial institutions sector (recast)

# (ECB/2013/33)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article                           5 thereof,                        

Having regard to Council Regulation (EC) No 2533/98 of 23 November 1998 concerning the collection of statistical information                           by the European Central Bank(1), and in particular Articles 5(1) and 6(4) thereof,                        

Having regard to Council Regulation (EC) No 2531/98 of 23 November 1998 concerning the application of minimum reserves by                           the European Central Bank(2), and in particular Article 6(4) thereof,                        

Having regard to the opinion of the European Commission,

Whereas:

(1)Regulation (EC) No 25/2009 of the European Central Bank of 19 December 2008 concerning the balance sheet of the monetary financial                              institutions sector (ECB/2008/32)(3) has been substantially amended. Since further amendments are to be made, in particular in the light of Regulation (EU) No                              549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts                              in the European Union(4), it should be recast in the interests of clarity.

(2)The European System of Central Banks (ESCB) requires, for the fulfilment of its tasks, the production of the consolidated                              balance sheet of the monetary financial institutions (MFI) sector. The principal purpose of such information is to provide                              the European Central Bank (ECB) with a comprehensive statistical picture of monetary developments in the Member States whose                              currency is the euro (hereinafter the ‘euro area Member States’) which are viewed as one economic territory. These statistics                              cover aggregate financial assets and liabilities, in terms of stocks and transactions, based on a complete and homogeneous                              MFI sector and reporting population, and are produced on a regular basis. Sufficiently detailed statistical data are also                              necessary to guarantee the continued analytical usefulness of the euro area monetary aggregates and counterparts.

(3)The ECB is required, in accordance with the Treaty on the Functioning of the European Union and under the conditions laid                              down in the Statute of the European System of Central Banks and of the European Central Bank (hereinafter the ‘Statute of                              the ESCB’), to make regulations to the extent necessary to implement the ESCB’s tasks as defined in the Statute of the ESCB                              and in some cases as laid down in the provisions adopted by the Council pursuant to Article 129(4) of the Treaty.

(4)Article 5.1 of the Statute of the ESCB requires the ECB, assisted by the national central banks (NCBs), to collect the necessary                              statistical information either from the competent national authorities or directly from economic agents in order to undertake                              the ESCB’s tasks. Article 5.2 of the Statute of the ESCB stipulates that the NCBs carry out, to the extent possible, the tasks                              described in Article 5.1.

(5)Article 3 of Regulation (EC) No 2533/98 requires the ECB to specify the actual reporting population within the limits of the                              reference reporting population and entitles it to fully or partly exempt specific classes of reporting agents from its statistical                              reporting requirements. Article 6(4) provides that the ECB may adopt regulations specifying the conditions under which the                              right to verify or to carry out the compulsory collection of statistical information may be exercised.

(6)Article 4 of Regulation (EC) No 2533/98 requires Member States to organise themselves in the field of statistics and to cooperate                              fully with the ESCB in order to ensure fulfilment of the obligations arising from Article 5 of the Statute of the ESCB.

(7)It may be appropriate for NCBs to collect from the actual reporting population the statistical information necessary to fulfil                              the ECB’s statistical requirements as part of a broader statistical reporting framework which the NCBs establish under their                              own responsibility in accordance with Union or national law or established practice and which also serves other statistical                              purposes, provided that the fulfilment of the ECB’s statistical requirements is not jeopardised. This may also reduce the                              reporting burden. In order to foster transparency, it is appropriate, in these cases, to inform the reporting agents that                              data are collected to fulfil other statistical purposes. In specific cases, the ECB may rely on statistical information collected                              for such other purposes to fulfil its requirements.

(8)The statistical requirements are most detailed where the counterparties are part of the money-holding sector. Detailed data                              are required on: (a) deposit liabilities by subsector and maturity classified further by currency to permit a closer analysis                              of the developments of the foreign currency components included in the M3 monetary aggregate and to facilitate investigations                              concerning the degree of substitutability between foreign currency and euro-denominated components of M3; (b) loans by subsector,                              maturity, purpose, interest rate reset and currency, as this information is considered essential for monetary analysis purposes;                              (c) positions vis-à-vis other MFIs in so far as this is necessary to allow for netting of inter-MFI balances or to calculate                              the reserve base; (d) positions vis-à-vis non-euro area residents (rest of the world) for ‘deposits over two years agreed                              maturity’, ‘deposits redeemable at notice over two years’ and ‘repos’ in order to calculate the reserve base subject to the                              positive reserve ratio; (e) positions vis-à-vis the rest of the world for total deposit liabilities in order to compile the                              external counterparts; (f) deposit liabilities and loans vis-à-vis the rest of the world below and above one year original                              maturity for balance of payments and financial accounts purposes.

(9)For the purpose of collecting statistical information on MFIs’ securities portfolios, pursuant to Regulation (EU) No 1011/2012                              of the European Central Bank of 17 October 2012 concerning statistics on the holding of securities (ECB/2012/24)(5), NCBs report quarterly on a security-by-security basis. NCBs may combine the reporting requirements under this Regulation                              and Regulation (EU) No 1011/2012 (ECB/2012/24) where this may minimise the reporting burden on credit institutions. NCBs may                              allow money market funds (MMFs) to report in line with Regulation (EU) No 1073/2013 of the European Central Bank of 18 October                              2013 concerning statistics on the assets and liabilities of investment funds (ECB/2013/38)(6), so as to alleviate the burden on fund managers.

(10)Financial transactions are computed by the ECB as the difference between stock positions at end-month reporting dates, from                              which the effect of changes that arise due to influences other than transactions is removed. The requirement addressed to                              the reporting agents does not cover the exchange rate changes, which are calculated by the ECB, or by NCBs after consulting                              the ECB, from currency-by-currency stock data supplied by the reporting agents, or the reclassification adjustments, which                              are collected by the NCBs themselves using various information sources that are already available.

(11)Article 5 of Regulation (EC) No 2531/98 empowers the ECB to adopt regulations or decisions in order to exempt institutions                              from the minimum reserve requirements, to specify modalities to exclude or deduct liabilities owed to any other institution                              from the reserve base, and to establish differing reserve ratios for specific categories of liabilities. Under Article 6 of                              Regulation (EC) No 2531/98, the ECB has the right to collect from institutions the information necessary for the application                              of minimum reserve requirements, and to verify the accuracy and quality of the information which institutions provide to demonstrate                              compliance with the minimum reserve requirements. In order to reduce the overall reporting burden, it is desirable for the                              statistical information regarding the monthly balance sheet to be used for the regular calculation of the reserve base of                              the credit institutions subject to the ECB’s minimum reserve system, in accordance with Regulation (EC) No 1745/2003 of the                              European Central Bank of 12 September 2003 on the application of minimum reserves (ECB/2003/9)(7).

(12)The determination of specific procedures to be applied in the case of mergers involving credit institutions is necessary in                              order to clarify the obligations of these institutions in respect of reserve requirements.

(13)The ECB requires information on the securitisation activities of MFIs in order to interpret credit and loan developments in                              the euro area. Such information also complements data reported under Regulation (EU) No 1075/2013 of the European Central                              Bank of 18 October 2013 concerning statistics on the assets and liabilities of financial vehicle corporations engaged in securitisation                              transactions (ECB/2013/40)(8).

(14)While it is recognised that regulations adopted by the ECB under Article 34.1 of the Statute of the ESCB do not confer any                              rights or impose any obligations on Member States whose currency is not the euro (hereinafter the ‘non-euro area Member States’),                              Article 5 of the Statute of the ESCB applies to both euro area and non-euro area Member States. Recital 17 of Regulation (EC)                              No 2533/98 refers to the fact that Article 5 of the Statute of the ESCB, together with Article 4(3) of the Treaty on European                              Union, implies an obligation to design and implement at national level all the measures that the non-euro area Member States                              consider appropriate in order to carry out the collection of the statistical information needed to fulfil the ECB’s statistical                              reporting requirements and timely preparations in the field of statistics in order for them to become euro area Member States.

(15)The standards for the protection and use of confidential statistical information as laid down in Article 8 of Regulation (EC)                              No 2533/98 should apply.

(16)Article 7(1) of Regulation (EC) No 2533/98 provides that the ECB has the power to impose sanctions on reporting agents which                              fail to comply with statistical reporting requirements set out in ECB regulations or decisions,

HAS ADOPTED THIS REGULATION:

## Article 1U.K.Definitions

For the purpose of this Regulation:

‘monetary financial institution’ (MFI) means a resident undertaking that belongs to any of the following sectors:

central banks; and

other MFIs, which comprise

deposit-taking corporations:

credit institutions as defined in Article 4(1)(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council                                                         of 26 June 2013 on prudential requirements for credit institutions and investment firms(9), and                                                      

deposit-taking corporations other than credit institutions which are:
                                  -  other financial institutions which are principally engaged in financial intermediation and whose business is to receive deposits                                                               and/or close substitutes for deposits from institutional units, not only from MFIs (the degree of substitutability between                                                               the instruments issued by other MFIs and the deposits placed with credit institutions shall determine their classification                                                               as MFIs); and for their own account, at least in economic terms, to grant loans and/or make investments in securities, or                                                             
                                  -  electronic money institutions that are principally engaged in financial intermediation in the form of issuing electronic money;                                                               or                                                             

money market funds (MMFs) pursuant to Article 2;

‘reporting agent’ and ‘resident’ have the same meaning as defined in Article 1 of Regulation (EC) No 2533/98;

‘relevant NCB’ means the NCB of the euro area Member State in which the MFI is resident;

‘financial vehicle corporation (FVC)’ has the same meaning as defined in Article 1 of Regulation (EU) No 1075/2013 (ECB/2013/40);

‘securitisation’ means a transaction that is either: (a) a traditional securitisation as defined in Article 4 of Regulation                              (EU) No 575/2013; and/or (b) a securitisation as defined in Article 1 of Regulation (EU) No 1075/2013 (ECB/2013/40), which                              involves the disposal of the loans being securitised to an FVC;                           

‘electronic money institution’ and ‘electronic money’ have the same meaning as defined in Article 2(1) and (2) of Directive                              2009/110/EC of the European Parliament and of the Council(10);                           

‘write-down’ means the direct reduction of the carrying amount of a loan on the balance sheet due to its impairment;

‘write-off’ means a write-down of the full carrying amount of a loan leading to its removal from the balance sheet;

‘servicer’ means an MFI which manages loans underlying a securitisation or loans that have otherwise been transferred in terms                              of the collection of principal and interest from the obligors;                           

‘loan disposal’ means the economic transfer of a loan or pool of loans by the reporting agent to a transferee, achieved either                              by transfer of ownership or by sub-participation;                           

‘loan acquisition’ means the economic transfer of a loan or pool of loans from a transferor to the reporting agent, achieved                              either by transfer of ownership or by sub-participation;                           

‘intra-group positions’ mean positions between euro area deposit-taking corporations that belong to the same group, consisting                              of a parent and all its directly or indirectly controlled euro area resident group-members;                           

‘tail institution’ means a small MFI that has been granted a derogation pursuant to Article 9(1);

‘derecognition’ means the removal of a loan or part thereof from the stocks reported in accordance with Parts 2 and 3 of Annex                              I, including its removal due to the application of a derogation referred to in Article 9(4).                           

## Article 2U.K.Identification of MMFs

Collective investment undertakings complying with all the following shall be treated as MMFs, where they:

pursue the investment objective of maintaining a fund’s principal and providing a return in line with the interest rates of                              money market instruments;                           

invest in money market instruments which comply with the criteria for money market instruments set out in Directive 2009/65/EC                              of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative                              provisions relating to undertakings for collective investment in transferable securities (UCITS)(11), or deposits with credit institutions or, alternatively, ensure that the liquidity and valuation of the portfolio in which                              they invest is assessed on an equivalent basis;                           

ensure that the money market instruments they invest in are of high quality, as determined by the management company. The                              quality of a money market instrument shall be considered, inter alia, on the basis of the following factors:                           

the credit quality of the money market instrument;

the nature of the asset class represented by the money market instrument;

for structured financial instruments, the operational and counterparty risk inherent within the structured financial transaction;

the liquidity profile;

ensure that their portfolio has a weighted average maturity (WAM) of no more than six months and a weighted average life (WAL)                              of no more than 12 months (in accordance with Annex I, Part 1, Section 2);                           

provide daily net asset value (NAV) and a price calculation of their shares/units, and daily subscription and redemption of                              shares/units;                           

limit investment in securities to those with a residual maturity until the legal redemption date of less than or equal to                              two years, provided that the time remaining until the next interest rate reset date is less than or equal to 397 days whereby                              floating rate securities should reset to a money market rate or index;                           

limit investment in other collective investment undertakings to those complying with the definition of MMFs;

do not take direct or indirect exposure to equity or commodities, including via derivatives and only use derivatives in line                              with the money market investment strategy of the fund. Derivatives which give exposure to foreign exchange may only be used                              for hedging purposes. Investment in non-base currency securities is allowed provided the currency exposure is fully hedged;                           

have either a constant or fluctuating NAV.

## Article 3U.K.Actual reporting population

1.The actual reporting population shall consist of the MFIs resident in the territory of the euro area Member States (in line                        with Part 1 of Annex II).                  

2.The MFIs in the actual reporting population shall be subject to full statistical reporting requirements unless any derogation                        granted pursuant to Article 9 applies.                  

3.Entities which meet the MFI definition shall fall under the scope of this Regulation even if they are excluded from the scope                        of Regulation (EU) No 575/2013.                  

4.For the purpose of the collection of statistical information on the residency of the holders of MMF shares/units as specified                        in Section 5.7 of Part 2 of Annex I, the actual reporting population shall also consist of other financial intermediaries                        except insurance corporations and pension funds (‘OFIs’), subject to any derogations under Article 9(2)(c). For the purpose                        of this Regulation, NCBs may establish and maintain a list of OFIs that form part of the actual reporting population in accordance                        with the principles set out in Section 5.7 of Part 2 of Annex I.                  

## Article 4U.K.List of MFIs for statistical purposes

1.The Executive Board shall establish and maintain a list of MFIs for statistical purposes, taking into account the requirements                        in respect of frequency and timeliness which arise from its use in the context of the ECB’s minimum reserve system. The list                        of MFIs for statistical purposes shall include an entry on whether or not they are subject to the ECB’s minimum reserve system.                        The list of MFIs shall be up-to-date, accurate, as homogeneous as possible and sufficiently stable for statistical purposes.                  

2.The list of MFIs for statistical purposes and its updates shall be made accessible by NCBs and the ECB to the reporting agents                        in an appropriate manner, including by electronic means, via the internet or, at the request of the reporting agents, in paper                        form.                  

3.The list of MFIs for statistical purposes shall be for information only. However, if the latest accessible version of the                        list is incorrect, the ECB shall not impose sanctions on any entity which did not properly fulfil its statistical reporting                        requirements to the extent that it relied in good faith on the incorrect list.                  

## Article 5U.K.Statistical reporting requirements

1.The actual reporting population shall report to the NCB of the Member State in which the MFI is resident: (a) monthly stocks                        relating to the end-of-month balance sheet; and (b) monthly aggregated revaluation adjustments. Aggregated revaluation adjustments                        shall be reported in respect of loan write-offs and write-downs corresponding to the loans and covering the price revaluations                        of securities. Further details on certain items of the balance sheet information shall be reported quarterly or annually.                        NCBs may collect the quarterly data on a monthly basis if this facilitates the data production process. The required statistical                        information is specified in Annex I.                  

2.NCBs may collect the required statistical information on securities issued and held by MFIs on a security-by-security basis,                        to the extent that the data referred to in paragraph 1 can be derived in accordance with the minimum statistical standards                        specified in Annex IV.                  

3.MFIs shall report in accordance with the minimum requirements set out in Table 1A of Part 4 of Annex I monthly revaluation                        adjustments in respect of the full set of data required by the ECB. NCBs may collect additional data not covered by the minimum                        requirements. These additional data may refer to the breakdowns marked in Table 1A other than the ‘minimum requirements’.                  

4.The ECB may require explanatory information on the adjustments in ‘reclassifications and other adjustments’ collected by the                        NCBs.                  

5.The ECB may impose sanctions on reporting agents which fail to comply with the statistical reporting requirements set out                        in this Regulation in accordance with Decision ECB/2010/10 of 19 August 2010 on non-compliance with statistical reporting                        requirements(12).                  

## Article 6U.K.Additional statistical reporting requirements for loan securitisations and other loan transfers

MFIs shall report the following:

the net flow of loan securitisations and other loan transfers carried out during the reporting period, in accordance with                              Section 2 of Part 5 of Annex I;                           

the end-of-period amount outstanding and financial transactions excluding loan disposals and acquisitions during the relevant                              period in respect of securitised and derecognised loans for which the MFI acts as servicer in accordance with Section 3 of                              Part 5 of Annex I. NCBs may extend such reporting requirements to all derecognised loans serviced by MFIs that have been securitised                              or otherwise transferred;                           

the end-of-quarter amount outstanding in respect of all loans for which the MFI acts as servicer in a securitisation, in accordance                              with Section 4 of Part 5 of Annex I;                           

when applying the International Accounting Standard 39 (IAS 39), the International Financial Reporting Standard 9 (IFRS 9)                              or similar national accounting rules, the end-of-period amount outstanding in respect of loans disposed of by means of a securitisation                              that has not been derecognised from the balance sheet, in accordance with Section 5 of Part 5 of Annex I.                           

## Article 7U.K.Timeliness

1.NCBs shall decide when and with which periodicity they need to receive data from reporting agents in order to meet the deadlines                        set out below, taking into account the timeliness requirements of the ECB’s minimum reserve system where relevant, and shall                        inform the reporting agents accordingly.                  

2.Monthly statistics shall be transmitted by the NCBs to the ECB by close of business on the 15th working day following the                        end of the month to which they relate.                  

3.Quarterly statistics shall be transmitted by the NCBs to the ECB by close of business on the 28th working day following the                        end of the quarter to which they relate.                  

## Article 8U.K.Accounting rules for the purposes of statistical reporting

1.Unless otherwise provided for in this Regulation, the accounting rules followed by MFIs for the purposes of reporting under                        this Regulation shall be those laid down in the national transposition of Council Directive 86/635/EEC of 8 December 1986                        on the annual accounts and consolidated accounts of banks and other financial institutions(13), as well as in any other international standards applicable.                  

2.Deposit liabilities and loans shall be reported at their principal amount outstanding at the end of the month. Write-offs                        and write-downs as determined by the relevant accounting practices shall be excluded from this amount. Deposit liabilities                        and loans shall not be netted against any other assets or liabilities.                  

3.Without prejudice to accounting practices and netting arrangements prevailing in the euro area Member States, all financial                        assets and liabilities shall be reported on a gross basis for statistical purposes.                  

4.NCBs may allow the reporting of provisioned loans net of provisions and the reporting of purchased loans at the price agreed                        at the time of their acquisition, provided that such reporting practices are applied by all resident reporting agents.                  

## Article 9U.K.Derogations

1.Derogations may be granted to small MFIs, as follows:                  

(a)NCBs may grant derogations to small MFIs, provided that their combined contribution to the national MFI balance sheet in terms                        of stocks does not exceed 5 %;                  

(b)with regard to credit institutions, the derogations referred to in point (a) shall have the effect of reducing the statistical                        reporting requirements of credit institutions to which such derogations apply without prejudice to the requirements for the                        calculation of minimum reserves as set out in Annex III;                  

(c)with regard to small MFIs, where a derogation referred to in point (a) applies, NCBs shall continue, as a minimum, to collect                        data relating to the total balance sheet at least at an annual frequency so that the combined contribution to the national                        MFI balance sheet of the tail institutions can be monitored;                  

(d)without prejudice to point (a), NCBs may grant derogations to credit institutions that do not benefit from the regime laid                        down in points (a) and (b) with the effect of reducing their reporting requirements to those laid down in Part 6 of Annex                        I, provided that their combined contribution to the national MFI balance sheet in terms of stocks exceeds neither 10 % of                        the national MFI balance sheet nor 1 % of the euro area MFI balance sheet;                  

(e)NCBs shall check the fulfilment of the conditions set out in points (a) and (d) in good time in order to grant or withdraw,                        if necessary, any derogation with effect from the start of each year;                  

(f)small MFIs may choose not to make use of the derogations and to fulfil the full reporting requirements instead.                  

2.Derogations may be granted to MMFs by NCBs, as follows:                  

(a)NCBs may grant derogations to MMFs from the statistical reporting requirements set out in Article 5(1) provided that MMFs                        instead report balance sheet data in accordance with Article 5 of Regulation (EU) No 1073/2013 (ECB/2013/38), subject to the                        following requirements:                  

MMFs report such data on a monthly basis in accordance with the ‘combined approach’ set out in Annex I to Regulation (EU)                              No 1073/2013 (ECB/2013/38) and in accordance with the timeliness requirements set out in Article 9 thereof; and                           

MMFs report end-of-month stock data on MMF shares/units in accordance with the timeliness requirements set out in Article                              7(2);                           

(b)NCBs may also grant derogations to MMFs from the following statistical reporting requirements:                  

to provide the total positions for: (1) deposits of and loans granted to central banks and deposit-taking corporations; (2)                              deposits of and loans granted to all counterpart sectors apart from the non-financial corporations sector broken down by original                              maturity; and (3) intra-euro area cross-border deposits and loans broken down by country and by sector;                           

to provide the total accrued interest for loans and deposits;

to provide asset and liabilities positions vis-à-vis the insurance corporations and the pension funds sectors separately;

to provide information on intra-group positions, loans and deposits;

(c)NCBs may grant derogations in respect of the statistical reporting requirements as regards the residency of the holders of                        MMF shares/units:                  

where MMF shares/units are issued for the first time or where market developments require a change of a reporting option or                              the combination thereof, as defined in Section 5.7(b) of Part 2 of Annex I, NCBs may grant derogations, for a period of one                              year, in respect of the statistical reporting requirements set out in Section 5.7 of Part 2 of Annex I; or                           

where the required statistical information on the residency of the holders of MMF shares/units is collected from other available                              sources in accordance with Section 5.7 of Part 2 of Annex I. NCBs shall check the fulfilment of this condition in good time                              in order to grant or withdraw, if necessary, any derogation with effect from the start of each year, in agreement with the                              ECB.                           

3.Derogations may be granted in respect of reporting revaluation adjustments to MFIs, as follows:                  

(a)without prejudice to paragraph 1, NCBs may grant derogations in respect of the reporting of revaluation adjustments to MMFs,                        removing from the MMFs any requirement to report revaluation adjustments;                  

(b)NCBs may grant derogations in respect of the frequency and timeliness of the reporting of price revaluations of securities                        and require these data on a quarterly basis and with the same timeliness as for stock data reported on a quarterly basis,                        subject to the following requirements:                  

reporting agents, using different valuation methods, shall provide the NCBs with the relevant information on valuation practices,                              including quantitative indications on the percentage of their holdings of these instruments; and                           

where a substantial price revaluation has occurred, NCBs shall be entitled to request reporting agents to provide additional                              information relating to the month in which this took place;                           

(c)NCBs may grant derogations in respect of the reporting of price revaluations of securities, including the granting of complete                        exemption from any such reporting, to credit institutions which report the monthly stocks of securities on a security-by-security                        basis, subject to the following requirements:                  

the information reported includes, for each security, its carrying value on the balance sheet; and

for securities without publicly available identification codes, the information reported includes information on the instrument                              category, maturity and issuer which is at least sufficient for the derivation of the breakdowns defined as ‘minimum requirements’                              in Part 5 of Annex I.                           

4.Derogations may be granted to MFIs in respect of the statistical reporting of loans that are disposed of by means of a securitisation.                  

MFIs applying the International Accounting Standard 39 (IAS 39), the International Financial Reporting Standard 9 (IFRS 9)                     or similar national accounting rules may be allowed by their NCB to exclude from the stocks required by Parts 2 and 3 of Annex                     I any loans disposed of by means of a securitisation in accordance with national practice, provided that this practice is                     applied by all resident MFIs.                  

5.NCBs may grant derogations to MFIs in respect of reporting certain quarterly stocks related to non-euro area Member States.                  

If figures collected at a higher level of aggregation show that positions vis-à-vis counterparties resident in any non-euro                     area Member State or positions vis-à-vis the currency of a non-euro area Member State are insignificant, an NCB may decide                     not to require reporting in relation to such a Member State. The NCB shall inform its reporting agents of any such decision.                  

## Article 10U.K.Minimum standards and national reporting arrangements

1.Reporting agents shall comply with the statistical reporting requirements to which they are subject in accordance with the                        minimum standards for transmission, accuracy, compliance with concepts and revisions specified in Annex IV.                  

2.The NCBs shall define and implement the reporting arrangements to be followed by the actual reporting population in accordance                        with national requirements. The NCBs shall ensure that these reporting arrangements provide the required statistical information                        and allow accurate checking of the fulfilment of the minimum standards for transmission, accuracy, compliance with concepts                        and revisions specified in Annex IV.                  

## Article 11U.K.Mergers, divisions and reorganisations

In the event of a merger, division or any other reorganisation that might affect the fulfilment of its statistical obligations,                     the actual reporting agent concerned shall inform the relevant NCB, once the intention to implement such an operation has                     become public and within a reasonable time before it takes effect, of the procedures that are planned to fulfil the statistical                     reporting requirements set out in this Regulation.                  

## Article 12U.K.Use of the reported statistical information for the purpose of minimum reserves

1.The statistical information reported by credit institutions in accordance with this Regulation shall be used by each credit                        institution to calculate its reserve base in accordance with Regulation (EC) No 1745/2003 (ECB/2003/9). In particular, each                        credit institution shall use this information to verify the fulfilment of its reserve requirement over the maintenance period.                  

2.The reserve base data for the tail institutions for three reserve maintenance periods shall be based on end-of-quarter data                        collected by the NCBs within 28 working days following the end of the quarter to which they relate.                  

3.The special rules on the application of the ECB’s minimum reserve system set out in Annex III shall prevail over any provisions                        of Regulation (EC) No 1745/2003 (ECB/2003/9) in the case of conflict.                  

4.In order to facilitate the liquidity management of the ECB and of credit institutions, reserve requirements shall be confirmed                        at the latest on the first day of the maintenance period; however the need may exceptionally arise for credit institutions                        to report revisions to the reserve base or to reserve requirements which have been confirmed. The procedures for confirmation                        or acknowledgement of reserve requirements are without prejudice to the obligation for reporting agents always to report correct                        statistical information and to revise, as soon as possible, any incorrect statistical information they have already reported.                  

## Article 13U.K.Verification and compulsory collection

The NCBs shall exercise the right to verify or collect compulsorily the information which reporting agents are required to                     provide pursuant to this Regulation, without prejudice to the ECB’s right to exercise these rights itself. In particular,                     the NCBs shall exercise this right when an institution included in the actual reporting population does not fulfil the minimum                     standards for transmission, accuracy, compliance with concepts and revisions specified in Annex IV.                  

## Article 14U.K.First reporting

1.First reporting pursuant to this Regulation shall start with data for December 2014.                  

2.First reporting according to this Regulation in respect of cells corresponding to euro area Member States in Table 3 of Part                        3 of Annex I shall begin with the first quarterly data after the date of their adoption of the euro.                  

3.First reporting according to this Regulation in respect of cells corresponding to non-euro area Member States in Tables 3                        and 4 of Part 3 of Annex I shall begin with the first quarterly data after the date of their accession to the Union. If the                        relevant NCB decides not to require first reporting of insignificant data beginning with the first quarterly data after the                        date of the relevant Member State or Member States’ accession to the Union, reporting shall begin 12 months after the NCB                        informs the reporting agents that data are required.                  

## Article 15U.K.Repeal

1.Regulation (EC) No 25/2009 (ECB/2008/32) is repealed with effect from 1 January 2015.                  

2.References to the repealed Regulation shall be construed as references to this Regulation and shall be read in accordance                        with the correlation table set out in Annex VI.                  

## Article 16U.K.Final provision

This Regulation shall enter into force on the twentieth day following that of its publication in the *Official Journal of the European Union*. It shall apply from 1 January 2015.                  

This Regulation shall be binding in its entirety and directly applicable in the Member States in accordance with the Treaties.

## ANNEX IU.K.**MONETARY FINANCIAL INSTITUTIONS AND STATISTICAL REPORTING REQUIREMENTS**

### *Introduction*U.K.

The statistical system for the Member States whose currency is the euro (hereinafter the ‘euro area Member States’ covering                     the balance sheet of the monetary financial institution (MFI) sector comprises the two following main elements:                  

a list of MFIs for statistical purposes (see Part 1 for identification of certain MFIs); and

a specification of the statistical information reported by these MFIs at monthly, quarterly and annual frequency (see Parts                              2, 3, 4, 5, 6 and 7).                           

For the purpose of obtaining complete information on the MFIs’ balance sheets, it is also necessary to impose certain statistical                     reporting requirements on non-MMF investment funds (IFs) and on other financial intermediaries except insurance corporations                     and pension funds (hereinafter the ‘OFIs’), when acting in the context of financial activities involving money market fund                     (MMF) shares/units. This statistical information is collected by the national central banks (NCBs) from the MFIs and from                     IFs and OFIs, in accordance with Part 2 and according to national arrangements relying on the harmonised definitions and classifications                     set out in Article 1 and Annex II.                  

The money stock includes notes and coins in circulation and other monetary liabilities (deposits and other financial instruments                     which are close substitutes for deposits) of MFIs. The counterparts to the money stock comprise all other items in the MFI                     balance sheet. The ECB also compiles financial transactions derived from the stocks and from other data, including revaluation                     adjustment data reported by MFIs (see Part 5).                  

The statistical information required by the ECB is summarised in Part 8.

### PART 1U.K.**Identification of certain MFIs**

#### *SECTION 1*U.K.***Identification of certain MFIs based on principles of substitutability of deposits***

##### 1.1Financial institutions other than credit institutions which issue financial instruments that are considered close substitutes                        for deposits are classified as MFIs provided that they meet the MFI definition in other respects. The classification is based                        on the criteria of substitutability of deposits, i.e. whether liabilities are classified as deposits, which is determined                        by their liquidity, combining characteristics of transferability, convertibility, certainty and marketability, and having                        regard, where appropriate, to their term of issue.U.K.

These criteria for the substitutability of deposits are also applied to determine whether liabilities should be classified                     as deposits, unless there is a separate category for such liabilities.                  

##### 1.2For the purposes both of determining substitutability of deposits and classifying liabilities as deposits:U.K.

transferability refers to the possibility of mobilising funds placed in a financial instrument by using payment facilities,                              such as cheques, transfer orders, direct debits or similar means;                           

convertibility refers to the possibility and the cost of converting financial instruments into currency or transferable deposits;                              the loss of fiscal advantages in the case of such conversion may be considered a penalty that reduces the degree of liquidity;                           

certainty means knowing precisely in advance the capital value of a financial instrument in terms of national currency;

securities quoted and traded regularly on an organised market are considered to be marketable. For shares in open-end collective                              investment undertakings, there is no market in the usual sense. Nevertheless, investors know the daily quotation of the shares                              and can withdraw funds at this price.                           

#### *SECTION 2*U.K.***Specifications for the MMFs’ identification criteria***

For the purpose of Article 2:

the money market instrument shall be considered to be of a high credit quality, if it has been awarded one of the two highest                              available short-term credit ratings by each recognised credit rating agency that has rated the instrument or, if the instrument                              is not rated, it is of an equivalent quality as determined by the management company’s internal rating process. Where a recognised                              credit rating agency divides its highest short-term rating into two categories, these two ratings shall be considered as a                              single category and therefore the highest rating available;                           

the money market fund may, as an exception to the requirement in point (a), hold sovereign issuance of at least investment                              grade quality, whereby ‘sovereign issuance’ means money market instruments issued or guaranteed by a central, regional or                              local authority or central bank of a Member State, the ECB, the Union or the European Investment Bank;                           

when calculating WAL for securities, including structured financial instruments, the maturity calculation is based on the                              residual maturity until the legal redemption of the instruments. However, when a financial instrument embeds a put option,                              the exercise date of the put option may be used instead of the legal residual maturity only if the following conditions are                              fulfilled at all times:                           

the put option may be freely exercised by the management company at its exercise date;

the strike price of the put option remains close to the expected value of the instrument at the next exercise date;

the investment strategy of the MMF implies that there is a high probability that the option will be exercised at the next                                       exercise date;                                    

when calculating both WAL and WAM, the impact of financial derivative instruments, deposits and efficient portfolio management                              techniques shall be taken into account;                           

‘weighted average maturity’ (WAM) shall mean a measure of the average length of time to maturity of all of the underlying                              securities in the fund weighted to reflect the relative holdings in each instrument, assuming that the maturity of a floating                              rate instrument is the time remaining until the next interest rate reset to the money market rate, rather than the time remaining                              before the principal value of the security must be repaid. In practice, WAM is used to measure the sensitivity of a MMF to                              changing money market interest rates;                           

‘weighted average life’ (WAL) shall mean the weighted average of the remaining maturity of each security held in a fund, meaning                              the time until the principal is repaid in full, disregarding interest and not discounting. Contrary to the calculation of                              the WAM, the calculation of the WAL for floating rate securities and structured financial instruments does not permit the                              use of interest rate reset dates and instead only uses a security’s stated final maturity. WAL is used to measure the credit                              risk, as the longer the reimbursement of principal is postponed, the higher the credit risk. WAL is also used to limit the                              liquidity risk;                           

‘money market instruments’ means instruments normally traded on the money market which are liquid and have a value which can                              be accurately determined at any time;                           

‘management company’ means a company, the regular business of which is the management of the portfolio of an MMF.

### PART 2U.K.**Balance sheet (monthly stocks)**

To compile the euro area monetary aggregates and counterparts, the ECB requires the data in Table 1 as follows:

#### 1.Instrument categoriesU.K.

##### (a)LiabilitiesU.K.

The relevant instrument categories are: currency in circulation, deposit liabilities, MMF shares/units issued, debt securities                     issued, capital and reserves and remaining liabilities. In order to separate monetary and non-monetary liabilities, deposit                     liabilities are also broken down into overnight deposits, deposits with agreed maturity, deposits redeemable at notice and                     repurchase agreements (repos). See definitions in Annex II.                  

##### (b)AssetsU.K.

The relevant instrument categories are: cash, loans, debt securities held, equity, investment fund shares, fixed assets and                     remaining assets. See definitions in Annex II.                  

#### 2.Breakdown by maturityU.K.

Original maturity cut-offs provide a substitute for instrument detail where financial instruments are not fully comparable                     between markets.                  

##### (a)LiabilitiesU.K.

The cut-off points for the maturity bands, or for periods of notice, are: for deposits with agreed maturity, at one year and                     two years’ maturity at issue; and for deposits redeemable at notice, at three months’ and two years’ notice. Repos are not                     broken down by maturity as these are usually very short-term instruments, i.e. usually less than three months’ maturity at                     issue. Debt securities issued by MFIs are broken down at one and two years. No maturity breakdown is required for shares/units                     issued by MMFs.                  

##### (b)AssetsU.K.

The cut-off points for the maturity bands are: for MFI loans to euro area residents (other than MFIs) by subsector and further                     for MFI loans to households by purpose, at one and five year maturity bands; and for MFI holdings of debt securities issued                     by other MFIs located in the euro area, at one and two year maturity bands to enable the inter-MFI holdings of this instrument                     to be netted off in the calculation of the monetary aggregates.                  

#### 3.Breakdown by purpose and separate identification of loans to sole proprietorships/partnerships without legal statusU.K.

Loans to households and non-profit institutions serving households are further broken down by loan purpose (credit for consumption,                     lending for house purchase, other lending). Within the category ‘other lending’, loans granted to sole proprietorships/partnerships                     without legal status are to be identified separately (see definitions of instrument categories in Part 2 of Annex II and definitions                     of sectors in Part 3 of Annex II). NCBs may waive the requirement of separate identification of loans to sole proprietorships/partnerships                     without legal status if such loans constitute less than 5 % of the euro area Member State’s total lending to households.                  

#### 4.Breakdown by currencyU.K.

For balance sheet items that may be used in the compilation of monetary aggregates, balances in euro must be identified separately                     so that the ECB has the option of defining monetary aggregates in terms of balances denominated in all currencies combined                     or in euro alone.                  

#### 5.Breakdown by sector and residency of counterpartiesU.K.

##### 5.1The compilation of the euro area monetary aggregates and counterparts requires the identification of those counterparties                        located in the territory of the euro area that form the money-holding sector. For this purpose, non-MFI counterparties are                        divided, as set out in the revised European System of Accounts (hereinafter the ‘ESA 2010’) laid down by Regulation (EU) No                        549/2013 (see Part 3 of Annex II), into general government (S.13), with central government (S.1311) identified separately                        in total deposit liabilities, and other resident sectors. In order to calculate a monthly sector disaggregation of the monetary                        aggregates and credit counterparts, other resident sectors are further broken down by the following subsectors: non-MMF investment                        funds (S.124), other financial intermediaries, except insurance corporations and pension funds + financial auxiliaries + captive                        financial institutions and money lenders (S.125 + S.126 + S.127), insurance corporations (S.128), pension funds (S.129), non-financial                        corporations (S.11) and households + non-profit institutions serving households (S.14 + S.15). An additional distinction is                        made for counterparties that are FVCs and central clearing counterparties, within the merged counterpart sectors (S.125 +                        S.126 + S.127). For sole proprietorships/partnerships without legal status see Section 3. With respect to total deposit liabilities                        and the deposit categories ‘deposits over two years agreed maturity’, ‘deposits redeemable at notice over two years’ and ‘repos’,                        an additional distinction is made between credit institutions, other MFI counterparties and central government for the purposes                        of the ECB’s minimum reserve system.U.K.

##### 5.2With respect to total deposit liabilities and the asset category ‘total loans’, an additional distinction is made for central                        banks (S.121) and deposit-taking corporations except the central bank (S.122) and for the rest of the world banks and non-banks                        to better understand lending and funding policies in the banking sector and to better monitor interbank activities.U.K.

##### 5.3With respect to intra-group positions, an additional distinction is made for loan and deposit positions and transactions between                        deposit taking corporations except the central bank (S.122) to allow the identification of inter-linkages between credit institutions                        belonging to the same group (domestic and other euro area Member States).U.K.

##### 5.4With respect to debt securities holdings with original maturity up to one year, with a currency breakdown, an additional distinction                        is made for general government (S.13) to ensure a better overview on the inter-linkages between sovereigns and banks.U.K.

##### 5.5Certain deposits/loans arising from repos/reverse repos or analogous operations with other financial intermediaries (S.125)                        + financial auxiliaries (S.126) + captive financial institutions and money lenders (S.127) may relate to transactions with                        a central counterparty. A central counterparty is an entity that legally interposes itself between counterparties to contracts                        traded in financial markets, becoming the buyer to every seller and the seller to every buyer. Because such transactions are                        often substitutes for bilateral business among MFIs, an additional distinction is made within the deposit category ‘repurchase                        agreements’ with respect to business with these counterparties. Similarly, an additional distinction is made within the asset                        category ‘loans’ with respect to reverse repurchase agreements with these counterparties.U.K.

##### 5.6Domestic counterparties are identified separately from euro area other than domestic counterparties with respect to all statistical                        breakdowns. Counterparties located in the euro area are identified according to their domestic sector or institutional classification                        in accordance with the lists maintained by the ECB for statistical purposes and the ECB’s ‘Monetary, financial institutions                        and markets statistics sector manual: Guidance for the statistical classification of customers’, which follows classification                        principles that are consistent with the ESA 2010 as far as possible. There is no requirement for a geographical breakdown                        of counterparties located outside the euro area.U.K.

##### 5.7In the case of MMF shares/units issued by MFIs of the euro area Member States, reporting agents report as a minimum data on                        the residency of the holders according to a domestic/euro area other than domestic/rest of the world breakdown to allow the                        exclusion of holdings of non-residents of the euro area. NCBs may also derive the necessary statistical information from the                        data collected on the basis of Regulation (EU) No 1011/2012 (ECB/2012/24), to the extent that the data comply with timeliness                        pursuant to Article 7 of this Regulation and with the minimum standards defined in Annex IV.U.K.

As regards MMF shares/units for which, in accordance with national legislation, a record is kept identifying the holders thereof,                              including information on the residency of the holders, issuing MMFs or the persons legally representing them report data on                              the residency breakdown of the holders of their shares/units issued in the monthly balance sheet.                           

As regards MMF shares/units for which no record is kept identifying the holders thereof, in accordance with national legislation,                              or for which a record is kept but it does not contain information on the residency of the holders, reporting agents report                              data on the residency breakdown in accordance with the approach decided by the relevant NCB in agreement with the ECB. This                              requirement is limited to one or a combination of the following options, to be selected having regard to the organisation                              of the relevant markets and the national legal arrangements in the Member State in question. This requirement will be periodically                              monitored by the NCB.                           

Issuing MMFs:

Issuing MMFs or the persons legally representing them report data on the residency breakdown of the holders of their shares/units                                       issued. Such information may come from the agent distributing the shares/units or from any other entity involved in the issue,                                       buy-back or transfer of the shares/units.                                    

MFIs and OFIs as custodians of MMF shares/units:

As reporting agents, MFIs and OFIs acting as custodians of MMF shares/units report data on the residency breakdown of the                                       holders of shares/units issued by resident MMFs and held in custody on behalf of the holder or of another intermediary also                                       acting as a custodian. This option is applicable if: (i) the custodian distinguishes MMF shares/units kept in custody on behalf                                       of holders from those kept on behalf of other custodians; and (ii) most of the MMF shares/units are in the custody of domestic                                       resident institutions that are classified as financial intermediaries (MFIs or OFIs).                                    

MFIs and OFIs as reporters of transactions of residents with non-residents involving shares/units of a resident MMF:

As reporting agents, MFIs and OFIs acting as reporters of transactions of residents with non-residents involving shares/units                                       of a resident MMF report data on the residency breakdown of the holders of shares/units issued by resident MMFs, which they                                       trade on behalf of the holder or another intermediary also involved in the transaction. This option is applicable if: (i)                                       the reporting coverage is comprehensive, i.e. it covers substantially all of the transactions carried out by the reporting                                       agents; (ii) accurate data on purchases and sales with non-residents of the euro area are provided; (iii) differences between                                       issuing value and redemption value, excluding fees, of the same shares/units are minimal; (iv) the amount of shares/units                                       held by non-residents of the euro area issued by resident MMFs is low.                                    

If options (i) to (ii) do not apply, the reporting agents, including MFIs and OFIs, report the relevant data on the basis                                       of available information.                                    

##### *[X1Table 1*

**Monthly stocks**a

##### (5)Sole proprietorships/partnerships without legal status.]U.K.

### PART 3U.K.**Balance sheet (quarterly stocks)**

To further analyse monetary developments and to serve other statistical purposes, the ECB requires the following in respect                     of key items:                  

Subsector, maturity and real estate collateral breakdown of credit to euro area non-MFIs (see Table 2).

This is required to enable the monitoring of the complete subsector and maturity structure of MFIs’ overall credit financing                              (loans and securities) vis-à-vis the money-holding sector. For non-financial corporations and households, further ‘of which’                              positions are required identifying the loans secured with real estate collateral.                           

For loans denominated in euro with original maturity over one and over two years vis-à-vis non-financial corporations and                              households, further ‘of which’ positions are required for certain remaining maturities and interest rate reset periods (see                              Table 2). An interest rate reset is understood as a change in the interest rate of a loan which is provided for in the current                              loan contract. Loans subject to interest rate reset include, inter alia, loans with interest rates which are periodically                              revised in accordance with the evolution of an index, e.g. Euribor, loans with interest rates which are revised on a continuous                              basis, i.e. floating rates, and loans with interest rates which are revisable at the MFI’s discretion.                           

Subsector breakdown of MFI deposit liabilities to the general government (other than central government) of the euro area                              Member States (see Table 2).                           

This is required as complementary information to the monthly reporting.

Sector breakdown of positions with counterparties outside the euro area (see Table 2).

The sector classification in accordance with the System of National Accounts (hereinafter the ‘SNA 2008’) applies where the                              ESA 2010 is not in force.                           

Identification of on-balance sheet positions for derivatives and accrued interest on loans and deposits within the remaining                              assets and remaining liabilities (see Table 2).                           

This breakdown is required for enhancing consistency among statistics.

Country breakdown, including positions vis-à-vis the European Investment Bank and the European Stability Mechanism (see Table                              3).                           

This breakdown is required to analyse further monetary developments and also for the purposes of the transitional requirements                              and for data quality checks.                           

Sector breakdown for intra-euro area cross border deposits from and loans to non-MFIs (see Table 3).

This breakdown is required to assess the positions of the MFI sectors in individual Member States vis-à-vis the remaining                              euro area Member States.                           

Currency breakdown (see Table 4).

This breakdown is required to permit the calculation of transactions for monetary aggregates and counterparts adjusted for                              exchange rate changes where these aggregates include all currencies combined.                           

#### *[X1Table 2*

**Quarterly stocks (Sector breakdown)**

#### *Table 3*

**Quarterly stocks (Country breakdown)**

#### *Table 4*

**Quarterly stocks (Currency breakdown)**

### PART 4U.K.**Reporting of revaluation adjustments for the compilation of transactions**

To compile transactions in respect of the euro area monetary aggregates and counterparts, the ECB requires revaluation adjustments                     in respect of the write-offs/write-downs of loans and price revaluation of securities:                  

#### 1.Write-offs/write-downs of loansU.K.

The adjustment in respect of the write-offs/write-downs of loans is reported to allow the ECB to compile financial transactions                     from the stocks reported in two consecutive reporting periods. The adjustment reflects any changes in the stock of loans reported                     in accordance with Parts 2 and 3 caused by the application of write-downs, including the writing down of the full outstanding                     amount of a loan (write-off). The adjustment should also reflect the changes in provisions on loans if an NCB decides that                     balance sheet stocks are recorded net of provisions. Write-offs/write-downs of loans recognised at the time the loan is sold                     or transferred to a third party are also included, where identifiable.                  

The minimum requirements for write-offs/write-downs of loans are set out in Table 1A.

#### 2.Price revaluation of securitiesU.K.

The adjustment in respect of the price revaluation of securities refers to fluctuations in the valuation of securities that                     arise because of a change in the price at which securities are recorded or traded. The adjustment includes the changes that                     occur over time in the value of end-period balance sheet stocks because of changes in the reference value at which securities                     are recorded, i.e. potential gains/losses. It may also contain valuation changes that arise from transactions in securities                     i.e. realised gains/losses.                  

The minimum requirements for price revaluation of securities are set out in Table 1A.

No minimum reporting requirement is established for the liability side of the balance sheet. However, if valuation practices                     applied by reporting agents to debt securities issued result in changes to their end-period stocks, NCBs are permitted to                     collect data relating to such changes. Such data are reported as ‘other revaluation’ adjustments.                  

#### *[X1Table 1A*

**Monthly revaluation adjustments**a

### PART 5U.K.**Statistical reporting requirements for loan securitisations and other loan transfers**

#### 1.General requirementsU.K.

Data are reported in accordance with Article 8(2), qualified by those of Article 8(4) when applicable. All data items are                     broken down according to the residency and subsector of the loan obligor as indicated in the column headings of Table 5. Loans                     disposed of during a warehousing phase in a securitisation are treated as if they were already securitised.                  

#### 2.Requirements for reporting net flows of loans securitised or otherwise transferredU.K.

##### 2.1For the purposes of Article 6(a), MFIs calculate the items in Parts 1 and 2 of Table 5 as net flows of loans securitised or                        otherwise disposed of during the relevant period minus loans acquired during the relevant period. Loans transferred to or                        acquired from another domestic MFI, and loans whose transfer occurs as a result of a division of the reporting agent, or of                        a merger or take-over involving the reporting agent and another domestic MFI, are not included in this calculation. Loans                        transferred to or acquired from non-domestic MFIs are included in the calculation.U.K.

##### 2.2[X1The items referred to in Section 2.1 are allocated to Parts 1 and 2 of Table 5 as follows:]U.K.

disposals and acquisitions with an impact on the loan stocks reported in accordance with Parts 2 and 3 of Annex I, i.e., disposals                              resulting in derecognition and acquisitions resulting in recognition or re-recognition, are allocated to Part 1; and                           

disposals and acquisitions without an impact on the loan stocks reported in accordance with Parts 2 and 3 of Annex I, i.e.,                              disposals not resulting in derecognition and acquisitions not resulting in recognition or re-recognition, are allocated to                              Part 2.                           

##### 2.3The items in Part 1 of Table 5 are, on a monthly basis, further broken down according to the counterparty in the loan transfer,                        distinguishing between FVCs, of which FVCs resident in the euro area, and other counterparties. Further breakdowns by original                        maturity and purpose of the loan are required on a quarterly basis for some items as indicated in Table 5(b).U.K.

#### 3.Requirements for reporting of securitised and derecognised loans which are servicedU.K.

##### 3.1MFIs provide data in accordance with Part 3 of Table 5 on loans securitised and derecognised for which the MFI acts as servicer                        as follows:U.K.

end-of-period amounts outstanding; and

financial transactions excluding loan disposals and acquisitions during the relevant period, i.e. the change in the amounts                              outstanding which is attributable to loan principal repayments by borrowers.                           

##### 3.2As regards Section 3.1(b), NCBs may instead require MFIs to provide net flows of loan disposals and acquisitions for which                        the MFI acts as servicer so that the NCB can derive the financial transactions referred to in Section 3.1(b).U.K.

##### 3.3NCBs may provide a derogation to reporting agents from the requirements of Section 3.1(b) where the net flows collected in                        Part 1.1 of Table 5 meet the purpose of Section 3.2, i.e. where it is the national practice that securitised and derecognised                        loans are serviced by MFIs. NCBs will ensure that those net flows are consistent with the purposes of calculating the financial                        transactions excluding loan disposals and acquisitions under Section 3.1(b). NCBs may request additional information from                        MFIs in order to make the necessary adjustments.U.K.

##### 3.4NCBs may extend the statistical reporting requirements of this Section to all derecognised loans serviced by MFIs, that have                        been securitised or otherwise transferred. Where this is the case, the NCB will inform MFIs of the statistical reporting requirements                        pursuant to Part 3 of Table 5.U.K.

#### 4.Requirements for reporting the outstanding amounts of loans serviced in a securitisationU.K.

##### 4.1MFIs provide quarterly data on all loans serviced in a securitisation in accordance with Part 4 of Table 5 irrespective of                        whether the serviced loans or their respective servicing rights are recognised on the reporting agent’s balance sheet.U.K.

##### 4.2With respect to loans serviced for FVCs resident in other euro area Member States, MFIs provide further breakdowns, by aggregating                        the serviced loans separately for each Member State in which an FVC is resident.U.K.

##### 4.3NCBs may collect the data referred to in Article 6(b), or part thereof, on an FVC-by-FVC basis from resident MFIs acting as                        servicers of securitised loans. If an NCB considers that the data referred to in Section 4.4 and the breakdowns referred to                        in Section 4.2 may be collected on an FVC-by-FVC basis, it shall inform the MFIs whether, and the extent to which, the reporting                        referred to in Sections 4.1 and 4.2 is required.U.K.

#### 5.Statistical reporting requirements for MFIs applying the IAS 39, the IFRS 9 or similar national accounting rulesU.K.

##### 5.1MFIs applying the IAS 39, the IFRS 9 or similar rules report the end-of-month amounts outstanding of loans disposed of by                        means of a securitisation that have not been subject to derecognition in accordance with Part 5 of Table 5.U.K.

##### [X15.2.MFIs to which the derogation in Article 9(4) applies report the end-of-quarter amounts outstanding of the loans disposed of                           by means of a securitisation that have been subject to derecognition but are still recognised on the financial statements                           in accordance with Part 5 of Table 5.]U.K.

### PART 6U.K.**Simplified reporting for small credit institutions**

Credit institutions to which the derogations referred to in Article 9(1)(d) apply may be exempted from the following requirements:

The breakdown by currency referred to in Section 4 of Part 2.

The separate identification of:

positions with central counterparties as referred to in Section 5.3 of Part 2;

syndicated loans as indicated in Table 1 of Part 2;

debt securities of up to two years’ maturity and nominal capital guarantee below 100 %, as indicated in Table 1 of Part 2.

The sector breakdown referred to in Section 3 of Part 3.

The country breakdown referred to in Section 4 of Part 3.

The currency breakdown referred to in Section 5 of Part 3.

In addition, these credit institutions may fulfil the statistical reporting requirements referred to in Parts 2, 5 and 6 by                     reporting data only on a quarterly basis and in accordance with the timeliness requirement given for quarterly statistics                     in Article 7(3).                  

### PART 7U.K.**Summary**

Summary of breakdowns for the purposes of the aggregated balance sheet of the MFI sector(14)                   

## ANNEX IIU.K.**CONSOLIDATION PRINCIPLES AND DEFINITIONS**

### PART 1U.K.**Consolidation for statistical purposes within the same Member State**

#### 1.For each Member State whose currency is the euro (hereinafter a ‘euro area Member State’), the reporting population consists                        of MFIs included in the list of MFIs for statistical purposes and resident in the territory of the euro area Member States(15). These are:U.K.

institutions incorporated and located in that territory, including subsidiaries(16) of parent companies located outside that territory; and                           

branches of institutions that have their head office outside that territory.

Institutions located in offshore financial centres are treated statistically as residents of the territories in which the                     centres are located.                  

#### 2.MFIs consolidate for statistical purposes the business of all their domestic offices (registered or head office and/or branches)                        located in the same Member State. No consolidation for statistical purposes is permitted across national boundaries.U.K.

If a parent company and its subsidiaries are MFIs located in the same Member State, the parent company is permitted to consolidate                              in its statistical returns the business of these subsidiaries, keeping however the business of credit institutions and other                              MFIs separate.                           

If an institution has branches located within the territory of the other euro area Member States, the registered or head office                              located in a given euro area Member State considers the positions towards all these branches as positions towards residents                              in the other euro area Member States. Conversely, a branch located in a given euro area Member State considers the positions                              towards the registered or head office or towards other branches of the same institution located within the territory of the                              other euro area Member States as positions towards residents in the other euro area Member States.                           

If an institution has branches located outside the territory of the euro area Member States, the registered or head office                              located in a given euro area Member State considers the positions towards all these branches as positions towards residents                              of the rest of the world. Conversely, a branch located in a given euro area Member State considers the positions towards the                              registered or head office or towards other branches of the same institution located outside the euro area Member States as                              positions towards residents of the rest of the world.                           

### PART 2U.K.**Definitions of instrument categories**

#### 1.This table provides a detailed standard description of the instrument categories which national central banks (NCBs) transpose                        into categories applicable at the national level in accordance with this Regulation. The table does not constitute a list                        of individual financial instruments and the descriptions are not exhaustive. The definitions refer to the ESA 2010.U.K.

#### 2.Original maturity, i.e. maturity at issue, refers to the fixed period of life of a financial instrument before which it cannot                        be redeemed, e.g. debt securities, or before which it can be redeemed only with some kind of penalty, e.g. some types of deposits.                        The notice period corresponds to the time between the moment the holder gives notice of an intention to redeem the instrument                        and the date on which the holder is allowed to convert it into cash without incurring a penalty. Financial instruments are                        classified according to the notice period only when there is no agreed maturity.U.K.

#### 3.Financial claims can be distinguished by whether they are negotiable or not. A claim is negotiable if its ownership is readily                        capable of being transferred from one unit to another by delivery or endorsement or of being offset in the case of financial                        derivatives. While any financial instrument can be potentially traded, negotiable instruments are designed to be traded on                        an organised exchange or over-the-counter, although actual trading is not a necessary condition for negotiability.U.K.

##### *Table*

**Instrument categories**

### PART 3U.K.**Definitions of sectors**

The ESA 2010 provides the standard for the sector classification. This table provides a detailed standard description of sectors                     which NCBs transpose into national categories in accordance with this Regulation. Counterparties located in the euro area                     are identified according to their sector in accordance with the lists maintained by the European Central Bank (ECB) for statistical                     purposes, and the guidance for the statistical classification of counterparties provided in the ECB’s ‘Monetary financial                     institutions and markets statistics sector manual: Guidance for the statistical classification of customers’. Credit institutions                     located outside the euro area are referred to as ‘banks’ rather than as MFIs. Similarly, the term ‘non-MFI’ refers only to                     the Member States. For Member States whose currency is not the euro the term ‘non-banks’ is used.                  

#### *Table*

**Definitions of sectors**

## ANNEX IIIU.K.**APPLICATION OF MINIMUM RESERVE REQUIREMENTS AND RELATED SPECIAL RULES**

### PART 1U.K.**Minimum reserve requirements for credit institutions: general rules**

#### 1.Cells marked with an * in Table 1 in Annex I are used in the calculation of the reserve base. With respect to debt securities,                        credit institutions either present proof of liabilities to be excluded from the reserve base or apply a standardised deduction                        of a fixed percentage specified by the European Central Bank (ECB). Patterned cells are reported solely by credit institutions                        subject to reserve requirements.U.K.

#### 2.The column ‘of which credit institutions subject to reserve requirements, ECB and national central banks’ (NCBs) does not                        include the liabilities of reporting agents vis-à-vis institutions listed as exempt from the ECB’s minimum reserve system,                        i.e. institutions which are exempt for reasons other than their being subject to reorganisation measures. Institutions which                        are temporarily exempt from minimum reserve requirements on account of their being subject to reorganisation measures are                        treated as institutions subject to minimum reserve requirements and, therefore, liabilities vis-à-vis these institutions are                        covered under the column ‘of which credit institutions subject to reserve requirements, ECB and NCBs’. Liabilities vis-à-vis                        institutions not actually required to maintain reserve holdings with the European System of Central Banks owing to the application                        of the lump-sum allowance are also covered under this column.U.K.

#### 3.Full reporters may also report positions vis-à-vis ‘MFIs other than credit institutions subject to minimum reserves, ECB and                        NCBs’, rather than vis-à-vis ‘MFIs’ and ‘credit institutions subject to minimum reserves, ECB and NCBs’, provided that no                        loss of detail results and none of the positions in the non-patterned cells are affected. Furthermore, depending on the national                        collection systems and without prejudice to full compliance with the definitions and classification principles of the MFI                        balance sheet set out in this Regulation, credit institutions subject to reserve requirements may alternatively report the                        data necessary to calculate the reserve base, except those on negotiable instruments, in accordance with the table below,                        provided that none of the positions in the non-patterned cells of Table 1 in Annex I are affected.U.K.

#### 4.Tail institutions report, as a minimum, quarterly data necessary to calculate the reserve base in accordance with the table                        below.U.K.

#### 5.For reporting in accordance with the table below, strict correspondence with Table 1 of Annex I must be ensured.U.K.

                   

### PART 2U.K.**Special rules**

#### *SECTION 1*U.K.***Statistical reporting on an aggregated basis as a group by credit institutions subject to the ECB’s minimum reserve system***

##### 1.1Subject to the fulfilment of the conditions set out in Article 11 of Regulation (EC) No 1745/2003 (ECB/2003/9), the Executive                        Board may allow credit institutions subject to minimum reserve requirements to carry out aggregated statistical reporting                        as a group within a single Member State. All institutions concerned are included separately in the ECB’s list of MFIs.U.K.

##### 1.2If credit institutions have been permitted to hold minimum reserves through an intermediary, pursuant to Article 10 of Regulation                        (EC) No 1745/2003 (ECB/2003/9), and do not benefit from the group reporting referred to in this section, the relevant NCB                        may authorise the intermediary to carry out aggregated statistical reporting (other than in respect of the reserve base) on                        behalf of credit institutions. All institutions concerned are included separately in the ECB’s list of MFIs.U.K.

##### 1.3If the group of credit institutions is comprised solely of tail institutions, it is only required to comply with the simplified                        reporting for tail institutions. Otherwise, the reporting scheme for full reporters applies to the group as a whole.U.K.

#### *SECTION 2*U.K.***Reserve requirements in the case of mergers involving credit institutions***

##### 2.1For the purpose of this Annex, the terms ‘merger’, ‘merging institutions’, and ‘acquiring institution’ have the meanings set                        out in Article 1 of Regulation (EC) No 1745/2003 (ECB/2003/9).U.K.

##### 2.2For the maintenance period within which a merger takes effect, the reserve requirements of the acquiring institution are calculated                        and have to be fulfilled as set out in Article 13 of Regulation (EC) No 1745/2003 (ECB/2003/9).U.K.

##### 2.3For the consecutive maintenance periods, the reserve requirement of the acquiring institution is calculated on the basis of                        a reserve base and of statistical information reported in accordance with the rules set out in the table below. Otherwise,                        the normal rules for reporting statistical information and calculation of reserve requirements, as set out in Article 3 of                        Regulation (EC) No 1745/2003 (ECB/2003/9), apply.U.K.

##### 2.4Without prejudice to the obligations set out in the previous paragraphs, the relevant NCB may authorise the acquiring institution                        to fulfil its obligation to report statistical information through temporary procedures, for instance separate forms for each                        of the merging institutions during several periods after the merger has taken place. The length of this derogation from normal                        reporting procedures should be limited to the extent possible and should not exceed six months after the merger has taken                        place. This derogation is without prejudice to the obligation for the acquiring institution to fulfil its reporting obligations                        in accordance with this Regulation and, if applicable, its obligation to assume the reporting obligations of merging institutions                        in accordance with this Annex.U.K.

## ANNEX IVU.K.**MINIMUM STANDARDS TO BE APPLIED BY THE ACTUAL REPORTING POPULATION**

Reporting agents must fulfil the following minimum standards to meet the European Central Bank’s (ECB’s) statistical reporting                     requirements.                  

### 1.Minimum standards for transmission:U.K.

reporting must be timely and within the deadlines set by the relevant NCB;

statistical reports must take their form and format from the technical reporting requirements set by the relevant NCB;

the reporting agent must provide the details of one or more contact persons to the relevant NCB;

the technical specifications for data transmission to the relevant NCB must be followed.

### 2.Minimum standards for accuracy:U.K.

statistical information must be correct: all linear constraints must be fulfilled (e.g. assets and liabilities must balance,                              subtotals must add up to totals), and data must be consistent across all frequencies;                           

reporting agents must be able to provide information on the developments implied by the transmitted data;

statistical information must be complete and must not contain continuous and structural gaps; existing gaps must be acknowledged,                              explained to the relevant NCB and, where applicable, bridged as soon as possible;                           

reporting agents must follow the dimensions, rounding policy and decimals set by the relevant NCB for the technical transmission                              of the data.                           

### 3.Minimum standards for compliance with concepts:U.K.

statistical information must comply with the definitions and classifications contained in this Regulation;

in the event of deviations from these definitions and classifications reporting agents must monitor and quantify the difference                              between the measure used and the measure contained in this Regulation on a regular basis;                           

reporting agents must be able to explain breaks in the transmitted data compared with the previous periods’ figures.

### 4.Minimum standards for revisions:U.K.

The revisions policy and procedures set by the ECB and the relevant NCB must be followed. Revisions deviating from regular                     revisions must be accompanied by explanatory notes.                  

## ANNEX VU.K.**REPEALED REGULATION WITH ITS SUCCESSIVE AMENDMENTS**

          -  Regulation (EC) No 25/2009 (ECB/2008/32)  (OJ L 15, 20.1.2009, p. 14).                         
          -  Regulation (EU) No 883/2011  (OJ L 228, 3.9.2011, p. 13).                         

## ANNEX VIU.K.

### **CORRELATION TABLE**

1

OJ L 318, 27.11.1998, p. 8.                           

2

OJ L 318, 27.11.1998, p. 1.                           

3

OJ L 15, 20.1.2009, p. 14.                           

4

OJ L 174, 26.6.2013, p. 1.                           

5

OJ L 305, 1.11.2012, p. 6.                           

6

See p. 73 of this Official Journal.

7

OJ L 250, 2.10.2003, p. 10.                           

8

See p. 107 of this Official Journal.

9

OJ L 176, 27.6.2013, p. 1.                           

10

OJ L 267, 10.10.2009, p. 7.                           

11

OJ L 302, 17.11.2009, p. 32.                           

12

OJ L 226, 28.8.2010, p. 48.                           

13

OJ L 372, 31.12.1986, p. 1.                           

14

Monthly data breakdowns are indicated in bold, quarterly data breakdowns are indicated in normal type.

15

In the tables of this Annex, the ECB is classified as an MFI resident in the country where the ECB is physically located.

16

Subsidiaries are separate incorporated entities in which another entity has a majority or full participation, whereas branches                              are unincorporated entities (without independent legal status) totally owned by the parent.