02013R1071 — EN — 21.12.2014 — 001.002

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►B 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) (OJ L 297 7.11.2013, p. 1)

Amended by:





Corrected by:









▼B

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)







Article 1

Definitions

For the purpose of this Regulation:

(a) ‘monetary financial institution’ (MFI) means a resident undertaking that belongs to any of the following sectors: 1. central banks; and 2. other MFIs, which comprise (a) deposit-taking corporations: (i) 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 ( 1 ), and (ii) 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 (b) money market funds (MMFs) pursuant to Article 2;

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

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

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

(e) ‘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;

(f) ‘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 ( 2 );

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

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

(i) ‘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;

(j) ‘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;

(k) ‘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;

(l) ‘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;

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

(n) ‘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 2

Identification of MMFs

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

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

(b) 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) ( 3 ), 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;

(c) 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: (i) the credit quality of the money market instrument; (ii) the nature of the asset class represented by the money market instrument; (iii) for structured financial instruments, the operational and counterparty risk inherent within the structured financial transaction; (iv) the liquidity profile;

(d) 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);

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

(f) 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;

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

(h) 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;

(i) have either a constant or fluctuating NAV.

Article 3

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 4

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 5

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 ( 4 ).

Article 6

Additional statistical reporting requirements for loan securitisations and other loan transfers

MFIs shall report the following:

(a) 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;

(b) 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;

(c) 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;

(d) 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 7

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 8

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 ( 5 ), 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 9

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: (i) 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 (ii) 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: (i) 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; (ii) to provide the total accrued interest for loans and deposits; (iii) to provide asset and liabilities positions vis-à-vis the insurance corporations and the pension funds sectors separately; (iv) 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: (i) 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 (ii) 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: (i) 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 (ii) 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: (i) the information reported includes, for each security, its carrying value on the balance sheet; and (ii) 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 10

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 11

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 12

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.

▼M1

2. The reserve base data for the tail institutions for two 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.

▼B

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 13

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 14

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 15

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 16

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 I

MONETARY FINANCIAL INSTITUTIONS AND STATISTICAL REPORTING REQUIREMENTS

Introduction

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

(b) 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 1

Identification of certain MFIs

SECTION 1

Identification of certain MFIs based on principles of substitutability of deposits

1.1 Financial 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.

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.

1.2 For the purposes both of determining substitutability of deposits and classifying liabilities as deposits:

(a) 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;

(b) 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;

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

(d) 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

Specifications for the MMFs’ identification criteria

For the purpose of Article 2:

(a) 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;

(b) 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;

(c) 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: (i) the put option may be freely exercised by the management company at its exercise date; (ii) the strike price of the put option remains close to the expected value of the instrument at the next exercise date; (iii) the investment strategy of the MMF implies that there is a high probability that the option will be exercised at the next exercise date;

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

(e) ‘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;

(f) ‘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;

(g) ‘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;

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

PART 2

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 categories

(a) Liabilities

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) Assets

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 maturity

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

(a) Liabilities

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) Assets

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 status

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 currency

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 counterparties

5.1 The 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.

5.2 With 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.

5.3 With 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).

5.4 With 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.

5.5 Certain 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.

5.6 Domestic 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.

5.7 In 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.

(a) 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.

(b) 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. (i) 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. (ii) 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). (iii) 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. (iv) 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.

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Table 1

Monthly stocks (6)







BALANCE SHEET ITEMS A. Domestic B. Euro area other than domestic C. Rest of the world D. Total Total MFIs (3) Non-MFIs Total MFIs (3) Non-MFIs Total Banks Non-Banks of which: Central Bank (S1.121) of which: Deposit-taking corporations except the central bank (S1.122) of which: credit institutions subject to RRs, ECB and NCBs General government (S.13) Other resident sectors of which: Central Bank (S1.121) of which: Deposit-taking corporations except the central bank (S1.122) of which: credit institutions subject to RRs, ECB and NCBs General government (S.13) Other resident sectors of which: Credit institutions Central Government (S. 1311) Other general government Total Non-MMF investment funds (S.124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S.14+S.15) of which: Credit institutions Central Government (S. 1311) Other general government Total Non-MMF investment funds (S.124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S.14+S.15) of which: CCP (4) of which: FVCs of which: CCP (4) of which: FVCs (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) LIABILITIES 8 Currency in circulation 9 Deposits * * * * * * * up to 1 year over 1 year of which: intra-group positions of which: Transferable deposits of which: up to 2 years of which: syndicated loans 9e Euro * * * * 9.1e Overnight * * * * of which: Transferable deposit 9.2e With agreed maturity up to 1 year * * * * over 1 and up to 2 years * * * * over 2 years * * * * * * * * * * * 9.3e Redeemable at notice up to 3 months * * * * over 3 months * * * * of which: over 2 years (1) * * * * * * * * * * * 9.4e Repos * * * * * * * * * * * 9x Foreign currencies 9.1x Overnight * * * * 9.2x With agreed maturity up to 1 year * * * * over 1 and up to 2 years * * * * over 2 years * * * * * * * * * * * 9.3x Redeemable at notice up to 3 months * * * * over 3 months * * * * of which: over 2 years (2) * * * * * * * * * * * 9.4x Repos * * * * * * * * * * * 10 MMFs shares/units (3) 11 Debt securities issued 11e Euro up to 1 year * over 1 and up to 2 years * of which: up to 2 years and nominal capital guarantee below 100% over 2 years * 11x Foreign currencies up to 1 year * over 1 and up to 2 years * of which: up to 2 years and nominal capital guarantee below 100% over 2 years * 12 Capital and reserves 13 Remaining liabilities







BALANCE SHEET ITEMS A. Domestic B. Euro area other than domestic C. Rest of the world D. Total MFIs Non-MFIs MFIs Non-MFIs of which: Central Bank (S.121) of which: Deposit-taking corporations except the central bank (S.122) General government (S.13) Other resident sectors of which: Central Bank (S. 121) of which: Deposit-taking corporations except the central bank (S. 122) General government (S. 13) Other resident sectors Total Non-MMF investment funds (S.124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S.14+S.15) Total Non-MMF investment funds (S. 124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S. 14+S. 15) of which: CCP (4) of which: FVCs Total Credit for consumption Lending for house purchase Other lending of which: CCP (4) of which: FVCs Total Credit for consumption Lending for house purchase Other lending of which: SP/P (3) of which: SP/P (3) ASSETS 1 Cash 1e of which: euro 2 Loans up to 1 year over 1 year and up to 5 years over 5 years of which: intra-group positions of which: syndicated loans of which: reverse repos 2e of which: euro of which: revolving loans and overdrafts of which: convenience credit card credit of which: extended credit card credit 3 Debt securities held 3e Euro up to 1 year over 1 and up to 2 years over 2 years 3x Foreign currencies up to 1 year over 1 and up to 2 years over 2 years 4 Equity 5 Investment fund shares/units MMF shares/units Non-MMF investment fund shares/units 6 Non-financial assets (including fixed assets) 7 Remaining assets

▼B

PART 3

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:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

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Table 2 Quarterly stocks (Sector breakdown) BALANCE SHEET ITEMS A. Domestic B. Euro area other than domestic C. Rest of the world D. Total MFI Non-MFIs MFI Non-MFIs Total Total General government (S.13) Other resident sectors Total General government (S.13) Other resident sectors Banks Non-banks Total Central government (S.1311) Other general government Total Non-MMF investment funds (S.124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S.14+S.15) Total Central government (S.1311) Other general government Total Non-MMF investment funds (S.124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S.14+S.15) General government Other resident sectors Total State government (S.1312) Local government (S.1313) Social security funds (S.1314) Total Credit for consumption Lending for house purchase Other lending Total State government (S.1312) Local government (S.1313) Social security funds (S.1314) Total Credit for consumption Lending for house purchase Other lending Real estate collateral Real estate collateral Real estate collateral Real estate collateral Real estate collateral Real estate collateral Real estate collateral Real estate collateral LIABILITIES 8. Currency in circulation 9. Deposits M M M 9.1. Overnight M M M M M M M M M M M M M M M M 9.2. With agreed maturity M M M M M M M M M M M M M M M M 9.3. Redeemable at notice M M M M M M M M M M M M M M M M 9.4. Repos M M M M M M M M M M M M M M M M 10. MMFs shares/units 11. Debt securities issued 12. Capital and reserves 13. Remaining liabilities of which: financial derivatives of which: accrued interest on deposits ASSETS 1. Cash 2. Loans M M M M M up to 1 year M M M M M M M M M M M M over 1 and up to 5 years M M M M M M M M M M M M over 5 years M M M M M M M M M M M M 2e Euro Loans with original maturity over 1 year of which: Loans with remaining maturity of less than or equal to 1 year of which: Loans with remaining maturity over 1 year and with interest rate reset in the next 12 months Loans with original maturity over 2 years of which: Loans with remaining maturity of less than or equal to 2 years of which: Loans with remaining maturity over 2 years and with interest rate reset in the next 24 months 3. Debt securities held M M M M M up to 1 year over 1 year 4. Equity M M M 5. Investment fund shares/units MMFs shares/units Non-MMF investment fund shares/units 6. Non-financial assets (including fixed assets) 7. Remaining assets of which: financial derivatives of which: accrued interest on loans



M Monthly data requirements, see Table 1.







Table 3 Quarterly stocks (Country breakdown) BALANCE SHEET ITEMS EU Rest of the world (excluding EU) Other euro area Member State Non-euro area Member State Selected EU institutions (*1) LIABILITIES 8. Currency in circulation 9. Deposits from MFIs from non-MFIs general government other financial intermediaries + financial auxiliaries + captive financial institutions and money lenders insurance corporations pension funds non-MMF investment funds non-financial corporations households + non-profit institutions serving households 10. Debt securities issued 11. MMF shares/units 12. Capital and reserves 13. Remaining liabilities ASSETS 1. Cash 2. Loans to MFIs to non-MFIs general government other financial intermediaries + financial auxiliaries + captive financial institutions and money lenders insurance corporations pension funds non-MMF investment funds non-financial corporations households + non-profit institutions serving households 3. Debt securities held issued by MFIs up to 1 year over 1 year and up to 2 years over 2 years issued by non-MFIs 4. Equity 5. Investment fund shares/units MMF shares/units Non-MMF investment fund shares/units 6. Non-financial assets (including fixed assets) 7. Remaining assets (*1) Data should be separately identified for the European Investment Bank and the European Stability Mechanism with reference to the applicable sector classification.







Table 4 Quarterly stocks (Currency breakdown) BALANCE SHEET ITEMS All currencies combined Euro EU currencies other than euro Currencies other than EU Member State currencies combined Total Other EU Member State currency GBP Total USD JPY CHF Remaining currencies combined LIABILITIES 9. Deposits A. Domestic from MFIs M M from non-MFIs M B. Euro area other than domestic from MFIs M M from non-MFIs M C. Rest of the world up to 1 year M over 1 year M from banks Q from non-banks Q 10. Debt securities issued M M ASSETS 2. Loans A. Domestic to MFIs M to non-MFIs M M B. Euro area other than domestic to MFIs M to non-MFIs M M C. Rest of the world up to 1 year M over 1 year M to banks Q to non-banks Q 3. Debt securities held A. Domestic issued by MFIs M M issued by non-MFIs M M B. Euro area other than domestic issued by MFIs M M Issued by non-MFIs M M C. Rest of the world issued by banks Q issued by non-banks Q



M Monthly data requirements, see Table 1.



Q Quarterly data requirements, see Table 2.

▼B

PART 4

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 loans

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 securities

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.

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Table 1A

Monthly revaluation adjustments (10)







BALANCE SHEET ITEMS A. Domestic B. Euro area other than domestic C. Rest of the world D. Total Total MFIs Non-MFIs Total MFIs Non-MFIs Total Banks Non-Banks of which: Central Bank (S.121) of which: Deposit-taking corporations except the central bank (S.122) of which: credit institutions subject to RRs, ECB and NCBs General government (S.13) Other resident sectors of which: Central Bank (S.121) of which: Deposit-taking corporations except the central bank (S.122) of which: credit institutions subject to RRs, ECB and NCBs General government (S.13) Other resident sectors of which: Credit institutions Central Government (S.1311) Other general government Total Non-MMF investment funds (S.124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S.14+S.15) of which: Credit institutions Central Government (S.1311) Other general government Total Non-MMF investment funds (S.124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S.14+S.15) of which: CCP (3) of which: FVCs of which: CCP (3) of which: FVCs (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) LIABILITIES 8 Currency in circulation 9 Deposits up to 1 year over 1 year of which: intra-group positions of which: Transferable deposits of which: up to 2 years of which: syndicated loans 9e Euro 9.1e Overnight of which: Transferable deposits 9.2e With agreed maturity up to 1 year over 1 and up to 2 years over 2 years 9.3e Redeemable at notice up to 3 months over 3 months of which: over 2 years (2) 9.4e Repos 9x Foreign currencies 9.1x Overnight 9.2x With agreed maturity up to 1 year over 1 and up to 2 years over 2 years 9.3x Redeemable at notice up to 3 months over 3 months of which: over 2 years (2) 9.4x Repos 10 MMFs shares/units * * * * MINIMUM 11 Debt securities issued 11e Euro up to 1 year * over 1 and up to 2 years * of which: up to 2 years and nominal capital guarantee below 100% * over 2 years * 11x Foreign currencies up to 1 year * over 1 and up to 2 years * of which: up to 2 years and nominal capital guarantee below 100% * over 2 years * 12 Capital and reserves 13 Remaining liabilities







BALANCE SHEET ITEMS A. Domestic B. Euro area other than domestic C. Rest of the world D. Total MFIs Non-MFIs MFIs Non-MFIs of which: Central Bank (S.121) of which: Deposit-taking corporations except the central bank (S.122) General government (S.13) Other resident sectors of which: Central Bank (S.121) of which: Deposit-taking corporations except the central bank (S.122) General government (S.13) Other resident sectors Total Non-MMF investment funds (S.124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S.14+S.15) Total Non-MMF investment funds (S.124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S.14+S.15) of which: CCP (3) of which: FVCs Total Credit for consumption Lending for house purchase Other lending of which: CCP (2) of which: FVCs Total Credit for consumption Lending for house purchase Other lending of which: SP/P (2) of which: SP/P (3) ASSETS 1 Cash 1e of which: euro 2 Loans MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM up to 1 year over 1 year and up to 5 years over 5 years of which: intra-group positions of which: syndicated loans MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM of which: reverse repos 2e of which: euro of which: revolving loans and overdrafts of which: convenience credit card credit of which: extended credit card credit 3 Debt securities held MINIMUM MINIMUM MINIMUM of which: over 2 years (2) MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM 3e Euro up to 1 year over 1 and up to 2 years over 2 years 3x Foreign currencies up to 1 year over 1 and up to 2 years over 2 years 4 Equity MINIMUM MINIMUM MINIMUM MINIMUM MINIMUM 5 Investment fund shares/units MMF shares/units MINIMUM MINIMUM MINIMUM Non-MMF investment fund shares/units MINIMUM MINIMUM MINIMUM 6 Non-financial assets (including fixed assets) 7 Remaining assets

(

1

) Series marked with the word ‘MINIMUM’ are reported by MFIs. NCBs may extend this requirement also to cover the series marked as blank cells (i.e. not containing the word ‘MINIMUM’).

▼B

PART 5

Statistical reporting requirements for loan securitisations and other loan transfers

1. General requirements

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 transferred

2.1 For 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.

2.2 The items referred to in Section 2.1 are allocated to Parts 1 and 2 of Table 5 as follows:

(a) 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

(b) 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.

2.3 The 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).

3. Requirements for reporting of securitised and derecognised loans which are serviced

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

(a) end-of-period amounts outstanding; and

(b) 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.

3.2 As 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).

3.3 NCBs 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.

3.4 NCBs 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.

4. Requirements for reporting the outstanding amounts of loans serviced in a securitisation

4.1 MFIs 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.

4.2 With 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.

4.3 NCBs 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.

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

5.1 MFIs 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.

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5.2. 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.







Table 5a Securitisations and other loan transfers: monthly data BALANCE SHEET ITEMS A. Domestic B. Euro area other than domestic C. Rest of the world MFIs Non-MFIs MFIs Non-MFIs General government (S.13) Other resident sectors General government (S.13) Other resident sectors Total Other general government (S.1312+S.1313+S.1314) Total Non-MMF investment funds (S.124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S.14+S.15) Total Other general government (S.1312+S.1313+S.1314) Total Non-MMF investment funds (S.124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S.14+S.15) 1. Net flows of loans securitised or otherwise transferred: transactions with impact on reported loan stocks calculated as disposals minus acquisitions 1.1 Counterparty in the transfer is an FVC 1.1.1 of which: counterparty in the transfer is a euro area FVC 1.2 other counterparties in the transfer 1.2.1 of which: counterparty in the transfer is a non-domestic euro area MFI 2. Net flows of loans securitised or otherwise transferred: transactions without impact on reported loan stocks calculated as disposals minus acquisitions 2.1. All counterparties in the transfer 3. Loans securitised and derecognised for which the MFI acts as servicer (1) 3.1 Outstanding amounts 3.2 Financial transactions excluding loan disposals and acquisitions 4. Outstanding amounts of loans serviced in a securitisation (2) 5. Outstanding amounts of securitised loans not derecognised (3) 5.1 Total 5.1.1 of which: securitised through a euro area FVC







Table 5b Securitisations and other loan transfers: quarterly data BALANCE SHEET ITEMS A. Domestic B. Euro area other than domestic C. Rest of the world MFIs Non-MFIs MFIs Non-MFIs General government (S.13) Other resident sectors General government (S.13) Other resident sectors Total Other general government (S.1312+S.1313+S.1314) Total Non-MMF investment funds (S.124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S.14+S.15) Total Other general government (S.1312+S.1313+S.1314) Total Non-MMF investment funds (S.124) Other financial intermediaries + 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) Households + non-profit institutions serving households (S.14+S.15) Credit for consumption Lending for house purchase Other lending Credit for consumption Lending for house purchase Other lending of which: SP/P (4) of which: SP/P (4) 1. Net flows of loans securitised or otherwise transferred: transactions with impact on reported loan stocks calculated as disposals minus acquisitions 1.1 counterparty in the transfer is an FVC M M M M M M M M M M M M M M M M M Loan purpose up to 1 year over 1 and up to 5 years over 5 years 1.1.1 of which: counterparty in the transfer is a euro area FVC M M M M M M M M M M M M M M M M M up to 1 year over 1 and up to 5 years over 5 years 1.2 Other counterparties in the transfer M M M M M M M M M M M M M M M M M Loan purpose 1.2.1 of which: counterparty in the transfer is a non-domestic euro area MFI M M M M M M M M M M M M M M M M M Loan purpose 2. Net flows of loans securitised or otherwise transferred: transactions without impact on reported loan stocks calculated as disposals minus acquisitions 2.1. All counterparties in the transfer M M M M M M M M M M M M M M M M M 3. Loans securitised and derecognised for which the MFI acts as servicer (1) 3.1 Outstanding amounts M M M M M M M M M M M M M M M M M Loan purpose up to 1 year over 1 and up to 5 years over 5 years 3.2 Financial transactions excluding loan disposals and acquisitions M M M M M M M M M M M M M M M M M Loan purpose up to 1 year over 1 and up to 5 years over 5 years 4. Outstanding amounts of loans serviced in a securitisation 4.1 Loans serviced: All FVCs up to 1 year over 1 and up to 5 years over 5 years 4.1.1 Loans serviced: of which FVCs euro area FVCs up to 1 year over 1 and up to 5 years over 5 years

▼B

PART 6

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:

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

2. The separate identification of: (a) positions with central counterparties as referred to in Section 5.3 of Part 2; (b) syndicated loans as indicated in Table 1 of Part 2; (c) debt securities of up to two years’ maturity and nominal capital guarantee below 100 %, as indicated in Table 1 of Part 2.

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

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

5. 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 7

Summary

Summary of breakdowns for the purposes of the aggregated balance sheet of the MFI sector ( 17 )







INSTRUMENT AND MATURITY CATEGORIES BALANCE SHEET ITEMS ASSETS LIABILITIES 1. Cash 2. Loans up to 1 year (1) over 1 year and up to 5 years (1) over 5 years (1) of which: intra-group positions of which: syndicated loans of which: reverse repos of which: revolving loans and overdrafts (euro) of which: convenience credit card credit (euro) of which: extended credit card credit (euro) of which: real estate collateral (6) Loans with original maturity over 1 year (euro) of which: loans with remaining maturity of less than 1 year of which: loans with remaining maturity over 1 year and with interest rate reset in the next 12 months Loans with original maturity over 2 years (euro) of which: loans with remaining maturity of less than 2 years of which: loans with remaining maturity over 2 years and with interest rate reset in the next 24 months 3. Debt securities held up to 1 year (2) over 1 year and up to 2 years (2) over 2 years (2) 4. Equity 5. Investment funds shares/units MMF shares/units Non-MMF investment fund shares/units 6. Non-financial assets (including fixed assets) 7. Remaining assets of which: financial derivatives of which: accrued interest on loans 8. Currency in circulation 9. Deposits up to 1 year (3) over 1 year (3) of which: intra-group positions of which: transferable deposits of which: up to 2 years of which: syndicated loans 9.1. Overnight deposits of which: transferable deposits 9.2. Deposits with agreed maturity up to 1 year over 1 year and up to 2 years over 2 years 9.3. Deposits redeemable at notice up to 3 months over 3 months of which: over 2 years (4) 9.4. Repos 10. MMF shares/units 11. Debt securities issued up to 1 year over 1 year and up to 2 years of which: up to 2 years and nominal capital guarantee below 100 % over 2 years 12. Capital and reserves 13. Remaining liabilities of which: financial derivatives of which: accrued interest on deposits







COUNTERPARTIES AND PURPOSE CATEGORIES ASSETS LIABILITIES A. Domestic residents MFIs of which: Central Banks of which: Deposit-taking corporations except the central bank Non-MFIs General government central government state government local government social security funds Other resident sectors (5) non-MMF investment funds (S.124) other financial intermediaries, financial auxiliaries and captive financial institutions and money lenders (S.125 + S.126 + S.127) (5) of which: central counterparties (6) of which: FVCs (6) insurance corporations (S.128) pension funds (S.129) (5) non-financial corporations (S.11) (5) households and non-profit institutions serving households (S.14 + S.15) (5) credit for consumption (6) lending for house purchase (6) other lending (6) of which: sole proprietorships/partnerships without legal status (6) B. euro area other than domestic residents MFIs of which: Central Banks of which: Deposit-taking corporations except the central bank Non-MFIs General government central government state government local government social security funds Other resident sectors (5) non-MMF investment funds (S.124) other financial intermediaries, financial auxiliaries and captive financial institutions and money lenders (S.125 + S.126 + S.127) (5) of which: central counterparties (6) of which: FVCs (6) insurance corporations (S.128) pension funds (S.129) (5) non-financial corporations (S.11) (5) households and non-profit institutions serving households (S.14 + S.15) (5) credit for consumption (6) lending for house purchase (6) other lending (6) of which: sole proprietorships/partnerships without legal status (6) C. Residents of the rest of the world Banks Non-banks General government Other residents A. Domestic residents MFIs of which: Central Banks of which: Deposit-taking corporations except the central bank of which: credit institutions Non-MFIs General government central government other general government state government local government social security funds Other resident sectors (5) non-MMF investment funds (S.124) other financial intermediaries, financial auxiliaries and captive financial institutions and money lenders (S.125 + S.126 + S.127) (5) of which: central counterparties (6) of which: FVCs (6) insurance corporations (S.128) pension funds (S.129) (5) non-financial corporations (S.11) (5) households and non-profit institutions serving households (S.14 + S.15) (5) B. euro area other than domestic residents MFIs of which: Central Banks of which: Deposit-taking corporations except the central bank of which: credit institutions Non-MFIs General government central government other general government state government local government social security funds Other resident sectors (5) non-MMF investment funds (S.124) other financial intermediaries, financial auxiliaries and captive financial institutions and money lenders (S.125 + S.126 + S.127) (5) of which: central counterparties (6) of which: FVCs (6) insurance corporations (S.128) pension funds (S.129) (5) non-financial corporations (S.11) (5) households and non-profit institutions serving households (S.14 + S.15) (5) C. Residents of the rest of the world Banks Non-banks General government Other residents D. Total D. Total CURRENCIES e euro x foreign currencies - currencies other than the euro, i.e. other Member States currencies, USD, JPY, CHF, remaining currencies. (7)









ANNEX II

CONSOLIDATION PRINCIPLES AND DEFINITIONS

PART 1

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 ( 25 ). These are:

(a) institutions incorporated and located in that territory, including subsidiaries ( 26 ) of parent companies located outside that territory; and

(b) 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.

(a) 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.

(b) 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.

(c) 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 2

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.

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.

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.

Table

Instrument categories







ASSET CATEGORIES Category Description of main features 1. Cash Holdings of euro and foreign banknotes and coins in circulation that are commonly used to make payments 2. Loans of up to and including one year/over one year and up to and including five years/over five years’ original maturity Holdings of financial assets created when creditors lend funds to debtors, which are not evidenced by documents or are evidenced by non-negotiable documents. This item also includes assets in the form of deposits placed by reporting agents. NCBs may also require the full sector breakdown for this item. 1. This item includes: (a) loans granted to households and non-profit institutions serving households, broken down by: (i) credit for consumption (loans granted for the purpose of mainly personal use in the consumption of goods and services). Credit for consumption granted to sole proprietorships/partnerships without legal status is included in this category, if the reporting MFI knows that the loan is predominantly used for personal consumption purposes; (ii) lending for house purchase (credit extended for the purpose of investing in houses for own use or rental, including building and refurbishments). It comprises loans secured on residential property that are used for the purpose of house purchase and other loans for house purchase made on a personal basis or secured against other forms of assets. Housing loans granted to sole proprietorships/partnerships without legal status are included in this category unless the reporting MFI knows that the house is predominantly used for business related purposes, in which case it is reported as ‘other lending of which sole proprietorships/partnerships without legal status’; (iii) other (loans granted for purposes other than consumption and house purchase, such as business, debt consolidation, education, etc.). This category may include loans for consumption purposes to sole proprietorships/partnerships without legal status (see Part 3 of Annex II) if these are not reported under the category ‘credit for consumption’. Unless the conditions for reduced reporting apply, an ‘of which’ position is to be reported, separately identifying within this category the loans granted to sole proprietorships (see Part 3 of Annex II); (b) credit card debt For the purpose of this Regulation, this category comprises credit granted to households or non-financial corporations either via delayed debit cards, i.e. cards providing convenience credit as defined below, or via credit cards, i.e. cards providing convenience credit and extended credit. Credit card debt is recorded on dedicated card accounts and therefore not evident on current or overdraft accounts. Convenience credit is defined as the credit granted at an interest rate of 0 % in the period between the payment transactions effectuated with the card during one billing cycle and the date at which the debit balances from this specific billing cycle become due. Extended credit is defined as the credit granted after the due dates of the previous billing cycles have passed, i.e. debit amounts on the card account that have not been settled when this was first possible, for which an interest rate or tiered interest rates usually greater than 0 % are charged. Often minimum instalments per month have to be made, to at least partially repay extended credit. The counterpart to these forms of credit is the entity liable to eventually repay the amounts outstanding in accordance with the contractual agreement, which coincides with the cardholder in the case of privately used cards, but not in the case of company cards; (c) Revolving loans and overdrafts Revolving loans are loans that have all the following features: (i) the borrower may use or withdraw funds to a pre-approved credit limit without giving prior notice to the lender; (ii) the amount of available credit can increase and decrease as funds are borrowed and repaid; (iii) the credit may be used repeatedly; (iv) there is no obligation of regular repayment of funds. Revolving loans include the amounts obtained through a line of credit and not yet repaid (outstanding amounts). A line of credit is an agreement between a lender and borrower that allows a borrower to take advances, during a defined period and up to a certain limit, and repay the advances at his discretion before a defined date. Amounts available through a line of credit that have not been withdrawn or have already been repaid are not to be considered under any balance sheet items category. Overdrafts are debit balances on current accounts. Both revolving loans and overdrafts exclude loans provided through credit cards. The total amount owed by the borrower is to be reported, irrespective of whether it is within or beyond any limit agreed beforehand between the lender and the borrower with regard to size and/or maximum period of the loan; (d) Syndicated loans (single loan agreements, in which several institutions participate as lenders). Syndicated loans only cover cases where the borrower knows, from the loan contract, that the loan is made by several lenders. For statistical purposes, only amounts actually disbursed by lenders (rather than total credit lines) are regarded as syndicated loans. The syndicated loan is usually arranged and coordinated by one institution (often called the ‘lead manager’) and is actually made by various participants in the syndicate. Participants, including the lead manager, all report their share of the loan vis-à-vis the borrower, i.e. not vis-à-vis the lead manager, in their balance sheet assets; (e) deposits, as defined under liability category 9; (f) financial leases granted to third parties Financial leases are contracts whereby the legal owner of a durable good (hereinafter the ‘lessor’) lends these assets to a third party (hereinafter the ‘lessee’) for most if not all of the economic lifetime of the assets, in exchange for instalments covering the cost of the good plus an imputed interest charge. The lessee is in fact assumed to receive all of the benefits to be derivable from the use of the good and to incur the costs and risks associated with ownership. For statistical purposes, financial leases are treated as loans from the lessor to the lessee enabling the lessee to purchase the durable good. The assets (durable goods) which have been lent to the lessee are not recorded anywhere on the balance sheet; (g) bad loans that have not yet been repaid or written off The total amount of loans in respect of which repayment is overdue or otherwise identified as being impaired, partially or totally, in accordance with the definition of default in Article 178 of Regulation (EU) No 575/2013; (h) holdings of non-negotiable securities Holdings of debt securities which are not negotiable and cannot be traded on secondary markets; (i) traded loans Loans that have de facto become negotiable are to be classified under the asset item ‘loans’ provided that there is no evidence of secondary market trading. Otherwise they should be classified as debt securities (category 3); (j) subordinated debt in the form of deposits or loans Subordinated debt instruments provide a subsidiary claim on the issuing institution that can only be exercised after all claims with a higher status, e.g. deposits/loans, have been satisfied, giving them some of the characteristics of equity. For statistical purposes, subordinated debt is to be classified as either ‘loans’ or ‘debt securities’ according to the nature of the financial instrument. Where MFI holdings of all forms of subordinated debt are currently identified as a single figure for statistical purposes, this figure is to be classified under the assets item ‘debt securities’, on the grounds that subordinated debt is predominately constituted in the form of securities, rather than as loans; (k) claims under reverse repos or securities borrowing against cash collateral Counterpart of cash paid out in exchange for securities purchased by reporting agents at a given price under a firm commitment to resell the same or similar securities at a fixed price on a specified future date, or securities borrowing against cash collateral (see liability category 9.4). For the purpose of this reporting scheme, the breakdown of loans according to real estate collateral includes the total amount of outstanding loans which are collateralised in accordance with Article 199 paragraphs 2 to 4 of Regulation (EU) No 575/2013, with an outstanding loan/collateral ratio of 1 or below 1. If these rules are not applied by the reporting agent, the determination of the loans to be included in this breakdown is based on the approach chosen to comply with capital requirements. 2. The following item is not treated as a loan: Loans granted on a trust basis Loans granted on a trust basis, i.e. trust loans or fiduciary loans, are loans made in the name of one party (hereinafter the ‘trustee’) on behalf of a third party (hereinafter the ‘beneficiary’). For statistical purposes, trust loans are not to be recorded on the balance sheet of the trustee where the risks and rewards of ownership of the funds remain with the beneficiary. The risks and rewards of ownership remain with the beneficiary where: (a) the beneficiary assumes the credit risk of the loan, i.e. the trustee is responsible only for the administrative management of the loan; or (b) the beneficiary’s investment is guaranteed against loss, should the trustee go into liquidation, i.e. the trust loan is not part of the assets of the trustee that can be distributed in the event of bankruptcy 3. Debt securities Holdings of debt securities, which are negotiable financial instruments serving as evidence of debt, are usually traded on secondary markets or can be offset on the market, and which do not grant the holder any ownership rights over the issuing institution. This item includes: (a) holdings of securities which give the holder the unconditional right to a fixed or contractually determined income in the form of coupon payments and/or a stated fixed sum at a specific date or dates, or starting from a date defined at the time of issue; (b) loans that have become negotiable on an organised market, i.e. traded loans, provided that there is evidence of secondary market trading, including the existence of market makers, and frequent quotation of the financial asset, such as provided by bid-offer spreads. Where this is not the case they should be classified under the asset item ‘loans’ (see also ‘traded loans’ in category 2i); (c) subordinated debt in the form of debt securities (see also ‘subordinated debt in the form of deposits or loans’ in category 2j) Securities lent out under securities lending operations or sold under a repurchase agreement remain on the original owner’s balance sheet (and are not to be recorded on the balance sheet of the temporary acquirer) where there is a firm commitment to reverse the operation, and not simply an option to do so. Where the temporary acquirer sells the securities received, this sale must be recorded as an outright transaction in securities and entered in the balance sheet of the temporary acquirer as a negative position in the securities portfolio 3a/3b/3c Debt securities of up to and including one year/of over one year and up to and including two years/of over two years’ original maturity These items include: (a) Holdings of negotiable debt securities of original maturity of up to and including one year/of over one year and up to and including two years/of over two years’ original maturity; (b) loans that have become negotiable on an organised market, i.e. traded loans that are classified as debt securities, of original maturity of up to and including one year/of over one year and up to and including two years/of over two years’ original maturity; (c) Subordinated debt in the form of debt securities of original maturity of up to and including one year/of over one year and up to and including two years/of over two years’ original maturity 4. Equity Equity represents property rights on corporations or quasi-corporations; it is a claim on residual value after the claims of all creditors have been met. This item includes listed and unlisted shares and other equity 5. Investment fund shares/units Shares or units issued by investment funds, which are collective investment undertakings that invest in financial and/or non-financial assets, to the extent that the objective is investing capital raised from the public This item includes MMF shares/units issued by MMFs pursuant to Article 2 of this Regulation and shares/units issued by non-MMF investment funds (as defined in Article 1(1) of Regulation (EU) No 1073/2013 (ECB/2013/38) 6. Non-financial assets (including fixed assets) Tangible or intangible assets other than financial assets. This item includes dwellings, other buildings and structures, machinery and equipment, valuables, and intellectual property products such as computer software and databases 7. Remaining assets The item ‘remaining assets’ is the residual item on the asset side of the balance sheet, defined as ‘assets not included elsewhere’. NCBs may require the reporting of specific sub-positions included in this item. Remaining assets may include: (a) financial derivative positions with gross positive market values For statistical purposes, financial derivative instruments that are subject to on-balance-sheet recording are included here and should be reported as a separate ‘of which’ item with a sectoral (MFI/non-MFI) and a geographical (domestic/euro area other than domestic/rest of the world) breakdown; (b) gross amounts receivable in respect of suspense items Suspense items are asset balances held in the MFI balance sheet which are not booked in the name of customers but which nevertheless relate to customers’ funds, e.g. funds that are awaiting investment, transfer or settlement; (c) gross amounts receivable in respect of transit items Transit items represent funds, usually belonging to customers, which are in the course of being transmitted between MFIs. Items include cheques and other forms of payment that have been sent for collection to other MFIs; (d) accrued interest receivable on loans In accordance with the general principle of accruals accounting, interest receivable on loans should be subject to on-balance-sheet recording as it accrues, i.e. on an accruals basis, rather than when it is actually received, i.e. on a cash basis. Accrued interest on loans is classified on a gross basis under the category ‘remaining assets’. Accrued interest is excluded from the loan to which it relates, and should be reported as a separate ‘of which’ item; (e) accrued interest on holdings of debt securities; (f) dividends to be received; (g) amounts receivable not related to the main MFI business; (h) asset counterpart to coins issued by the State (NCBs’ balance sheets only); Remaining assets’ exclude financial instruments that take the form of financial assets (included within the other balance sheet items), certain financial instruments that do not take the form of financial assets, such as guarantees, commitments, administered and trust loans (recorded off-balance sheet), and non-financial assets (included within category 6)







LIABILITY CATEGORIES Category Description of main features 8. Currency in circulation The liability category ‘currency in circulation’ is banknotes and coins in circulation that are issued or authorised by monetary authorities. This category includes banknotes issued by the ECB and the NCBs. Coins in circulation are not a liabi