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

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News

    EBA Updates Address Securitization Standards and DGS Guidelines

    The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.

    February 21, 2023 WebPage Regulatory News

    FSB Publishes Letter to G20, Sets Out Work Priorities for 2023

    The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023

    February 20, 2023 WebPage Regulatory News

    ISSB Standards May Become Effective from January 2024

    The International Organization of Securities Commissions (IOSCO) welcomed the confirmation statement by the International Sustainability Standards Board (ISSB) setting out its progress in the development of its first sustainability-related corporate disclosure standards.

    February 17, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8792