LOC/2 Explanatory Note

Summary

This is an explanatory note issued by the Guernsey Financial Services Commission to accompany form LOC/2, the statistical return that Guernsey banks use to report their quarterly locational banking positions. It explains the data reporting structure, sector definitions, and how to complete the LOC/2 worksheets correctly; it does not itself create the reporting obligation but clarifies how banks must fill in an existing recurring return.

• Sector classifications: Explains how to classify counterparties as Banks (including related offices and central banks as of which items), Non-bank financial institutions, and Non-financial sectors (general government, non-financial corporations, households including NPISHs), plus an Unallocated by sector category.
• Front sheet: The Commission pre-populates the bank name and cells; banks need only amend the reporting month and year, apply the usual double sign off, print and retain the sheet for future reference, and no longer need to send a hard copy to the Commission under the online submission process.
• Worksheet completion: Positions are reported in GBP thousands; LBS1 and LBS5 are password protected and auto calculated; banks must enter data only in white cells on LBS2 to LBS4 and LBS6 to LBS8; red headed columns must not be reported as that data appears elsewhere (e.g. unallocated currencies reported under OTH, GBP reported under Domestic Currency).
• Special reporting lines: Guernsey positions must be reported on line 7 (code 1E); international organisations must be reported on line 238 (code 1C), with the list of qualifying organisations found in the BIS Guidelines.
• Debt securities worksheets: LBS7 Liabs Debt Sec issues covers all debt security issuances and feeds into LBS5 Liabilities Total; LBS7 Liabs Debt Sec issues ST is a stand-alone of which figure for short term debt securities and does not feed into other worksheets.

The note is technical guidance for completing an existing statistical return rather than a standalone rule imposing new substantive requirements; it assumes the underlying quarterly LOC/2 reporting obligation is already in place.

Key obligations

• Banks must complete the LOC/2 return reporting quarterly locational banking positions using the sector classifications described.
• Banks must enter data only in the white cells of worksheets LBS2 to LBS4 and LBS6 to LBS8; red headed (locked) columns must not be reported.
• Banks must report Guernsey positions on line 7 using code 1E.
• Banks must report international organisations on line 238 using code 1C.
• Banks must complete the reporting date on LBS1 cell A1, which updates all other worksheets.
• Banks must apply the usual double sign off on the Front sheet, print it, and retain it for future reference (a hard copy no longer needs to be sent to the Commission).

Applies to

Guernsey banks

Deadlines

• quarterly: Guernsey banks report locational banking positions via the LOC/2 return on a quarterly basis.