Guidance Note on Prudential Reporting of Financial Data for JIBs

Summary

This is a detailed technical guidance note from the Jersey Financial Services Commission explaining how Jersey incorporated deposit takers (JIBs) should complete the 'Financial' data sheets within their prudential reporting returns. It covers the balance sheet (assets and liabilities), the derived credit summary, off-balance sheet exposures, and the profit and loss account.

• Balance sheet assets (sheet 2.1): Assets must be categorised by column according to the credit risk approach used (Standardised, F-IRB or A-IRB) for banking book items, or as Trading Book, and by row according to detailed asset categories (cash, loans to banks, marketable assets, loans and advances, investments, other financial assets, fixed assets), each mapped to a Credit Portfolio reference used for capital calculations.
• Past due assets: Assets on which a payment has been missed must be reclassified as 'Past due' once 90 days have elapsed since the missed payment, and reported in the designated F.3/F.5 line rather than under normal classification.
• Credit summary (sheet 2.2): This sheet is auto-derived from the balance sheet assets data and requires no separate manual input; it is used to cross-check credit risk category totals.
• Balance sheet liabilities (sheet 2.3): Liabilities must be categorised by row, including deposits by counterparty type (parent/group, other banks, customers, etc.) and other liability categories.
• Off-balance sheet exposures (sheet 2.4): JIBs must report the extent and nature of off-balance sheet activities using the prescribed categorisation.
• Profit and loss (sheet 2.5): JIBs must report income (banking and non-banking), operating expenses, bad debt provisions, extraordinary items, taxation and dividends according to the prescribed line items, to arrive at profit before and after tax and profit retained.
• General completion rule: Data should only be entered in the indicated white input boxes, and every applicable box must be completed, entering zero where a figure is nil.

The guidance is purely explanatory: it does not itself create new prudential requirements but clarifies how JIBs must complete specific fields of their existing periodic prudential returns to the JFSC.

Key obligations

• JIBs must categorise balance sheet assets by the applicable credit risk approach (Standardised, F-IRB or A-IRB) and by the prescribed asset category rows when completing sheet 2.1 BS Assets.
• JIBs must classify an asset as 'Past due' once 90 days have passed since a missed payment, reporting it separately rather than under its normal classification.
• JIBs must categorise balance sheet liabilities by counterparty and type when completing sheet 2.3 BS Liabilities.
• JIBs must report the nature and extent of off-balance sheet exposures in sheet 2.4.
• JIBs must report income, expenses, bad debt provisions, extraordinary items, taxation and dividends in the prescribed categories in the Profit and Loss sheet 2.5.
• JIBs must complete every applicable input box in the reporting sheets, entering zero where a value is nil, and must not enter data outside the designated input areas.

Applies to

Jersey incorporated deposit takers (JIBs)

Deadlines

• 90 days after a missed payment: An asset must be reclassified and reported as 'Past due' once 90 days have elapsed since a payment was missed.