Featured Product

    BoE Provides Guidance for Reporting of COVID-Related Loans on Form PL

    July 14, 2020

    BoE published a statistical notice that provides guidance on how interest receivable on loans under the three government coronavirus loan guarantees should be reported on Profit and Loss Return (Form PL). The three government coronavirus loan guarantees are Coronavirus Large Business Interruption Loan Scheme (CLBILS), Coronavirus Business Interruption Loan Scheme (CBILS), and Bounce Back Loan Scheme (BBLS). Form PL is used to collect data on the income and expenditure of a reporting institution. The data should be submitted via online statistical collection application (OSCA).

    The statistical notice sets out that the sectoral reporting of interest receivable should be consistent with the sectoral reporting on the equivalent balance sheet item. Since all three loan schemes guarantee loans primarily to private non-financial corporations (PNFCs), most of the interest receivable in relation to these schemes should be reported as interest receivable from PNFCs, even if the interest is paid by the UK government. All interest receivable under loans that are extended through the government guarantee schemes to sole traders, limited liability partnerships, or non-profits should be reported under these respective sectors, not as interest receivable from central government. Overall, the statistical notice provides the following key information about how this guidance relates to the three loan schemes:

    • Reporting guidance for CLBILS—All interest receivable on these loans should be reported as interest receivable from PNFCs (that is, under PL1BJ). Fees paid to the government to become an "accredited lender" should be reported under fees and commissions payable (PL6), not under tax or exceptional items.
    • Reporting guidance for CBILS and BBLS—Although all interest that accrues in the first year of these loan schemes is paid by the government, this interest needs to be reported as interest receivable from the sector to which the loan is made. For loans that are extended to PNFCs, the interest receivable should be reported under PL1BJ. Where loans made under these schemes are extended to sole traders and limited liability partnerships, the interest receivable should be reported under PL1BKA and where the loans are extended to non-profit institutions the interest should be reported under PL1BL. Any fees paid by lenders to the government to participate in CBILS should be reported under the fees and commissions payable (PL6).


    Related Links

    Keywords: Europe, UK, Banking, COVID-19, Loan Guarantee, CLBILS, CBILS, BBLS, Credit Risk, Form PL, Statistical Notice, Statistical Reporting, BoE

    Featured Experts
    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582