BoE Provides Guidance for Reporting of COVID-Related Loans on Form PL
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).
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Keywords: Europe, UK, Banking, COVID-19, Loan Guarantee, CLBILS, CBILS, BBLS, Credit Risk, Form PL, Statistical Notice, Statistical Reporting, BoE
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