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
    News

    BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance

    The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.

    January 16, 2022 WebPage Regulatory News
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    News

    MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.

    January 13, 2022 WebPage Regulatory News
    News

    HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets

    The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.

    January 12, 2022 WebPage Regulatory News
    News

    FCA Registers Securitization Repositories; PRA Issues 2022 Priorities

    The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.

    January 12, 2022 WebPage Regulatory News
    News

    EC Regulation Sets Out Methods for Measuring K-Factors Under IFR

    The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.

    January 11, 2022 WebPage Regulatory News
    News

    BIS Studies How Platform Models Impact Financial Stability & Inclusion

    The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.

    January 10, 2022 WebPage Regulatory News
    News

    CBE Issues Additional Measures to Ease Disruptions from Pandemic

    The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.

    January 10, 2022 WebPage Regulatory News
    News

    ESAs Publish List of Financial Conglomerates for 2021

    The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.

    January 07, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7868