Guidance Note on Prudential Reporting of Financial Data

Summary

This is a technical guidance note issued by the JFSC explaining how Jersey branches of Overseas Incorporated Banks (OIBs) should complete the prudential 'Financial' data return sheets covering balance sheet assets and liabilities, off-balance sheet exposures, profit and loss, and a derived liquidity summary. It does not create new prudential requirements itself, but sets out the categorisation and classification rules to be applied when populating each line item of the return.

• Balance sheet assets (sheet 2.1): Guidance on categorising cash, loans to banks, marketable assets, loans and advances, investments, other financial assets and other assets, with cross references to liquidity risk codes.
• Balance sheet liabilities (sheet 2.3): Guidance on categorising deposits by counterparty type, debt securities issued, creditors/accruals and other liabilities, and capital items.
• Off-balance sheet exposures (sheet 2.4): Categorisation guidance for off-balance sheet activities.
• Profit and loss (sheet 2.5): Guidance on reporting banking and non-banking income, operating expenses, bad debt provisions, extraordinary items and taxation.
• Liquidity summary (sheet 2.6): Automatically derived from the completed asset and liability sheets to allow cross-checking against the liquidity cashflow return.

The note emphasises that every input box in the relevant sheets must be completed, using zero where a category does not apply, and that certain totals must reconcile across different sheets of the prudential return (for example, total assets must equal total liabilities, and loan totals must match other lending sheets).

Key obligations

• Branches must categorise and report balance sheet assets, liabilities, off-balance sheet exposures and profit and loss items in the prudential return sheets according to the definitions and categories set out in the guidance note.
• Every white input box in the relevant sheets must be completed, entering zero where a category is not applicable, rather than leaving cells blank.
• Assets on which a payment has been missed for more than 90 days must be reclassified and reported as 'Past due' assets in item F.5 rather than under their normal classification.
• Totals calculated in the Assets sheet (e.g. Total Assets, Loans and Advances Total) must reconcile with corresponding totals in other prudential return sheets (e.g. '2.3 BS Liabilities', '8.2 Loan Security', '8.4 Lending by Sector', '8.4 Total Deposits').

Applies to

Branches of Overseas Incorporated Banks (OIBs) operating in Jersey