Guidance Note: Prudential Reporting of Loans and Deposits Data

Summary

This is a technical guidance note from the Jersey Financial Services Commission explaining how Jersey branches of Overseas Incorporated Banks (OIBs) should complete the loans and deposits data sections of their prudential returns. It sets out line-by-line completion instructions for six return sheets covering asset quality, loan security, deposits, sector lending, and large exposures.

• Asset quality and provisions (8.1): Branches must segment loans and advances by days past due (30 to 180+ days) and by internal credit classification (Satisfactory, Watch List, Substandard, Default), and reconcile provision movements against the profit and loss account.
• Loan security (8.2): Loans must be categorised by level of security cover held (100%+, 50-100%, 0-50%, unsecured, or booked loans with unknown security), totalling to the balance sheet loans figure.
• Total deposits (8.3): Deposits must be analysed by depositor residency (Jersey, Jersey intermediaries, UK/Guernsey/IoM, EU, non-EU Europe, Middle East, Far East, North America, other) and by specified currencies (GBP, EUR, USD, CHF, JPY, other).
• Lending by sector (8.4): Loans and advances must be broken down between Local and Non Local borrowers and by sector, plus a split between overdrafts and other loans and advances.
• Large exposures (8.5): Branches must report the 10 largest credit exposures exceeding £10 million, applying defined rules for aggregating connected borrowers and for selecting the applicable credit rating when multiple rating agencies apply.
• Exempt large exposures (8.6): Certain exposures (to highly rated central governments/banks, or to group entities such as head office, parent branches, or group banks) must instead be reported on a separate exempt large exposures sheet, aggregated by counterparty group.

The note is purely explanatory and operational, clarifying how existing prudential return fields should be populated; it does not itself introduce new reporting obligations beyond those already required under the return and the Code of Practice for Deposit-taking Business, but it does specify mandatory reporting treatments and reconciliation checks that branches must follow when submitting the return.

Key obligations

• Branches must segment loans and advances into non-performing buckets by days past due (30, 60, 90, 120, 150, 180 days) and by credit classification (Satisfactory, Watch List, Substandard, Default).
• Branches must reconcile provision balances (opening balance, P&L charges/releases, write-offs, recoveries, closing balance) each reporting period.
• Where reported figures on loan classification and past-due amounts appear materially inconsistent, an explanation must be provided in the covering letter.
• Branches must classify loans and advances by level of security cover (100%+, 50-100%, 0-50%, unsecured, booked loans) and total these to match the balance sheet loans figure.
• Branches must report deposits broken down by depositor residency category and by specified currencies (GBP, EUR, USD, CHF, JPY, other), totalling to the balance sheet deposits figure.
• If a single country's deposit balance exceeds 5% of total deposit liabilities, a breakdown must be provided in the Additional Detail sheet.
• Branches must report loans and advances by sector and by Local/Non Local classification, and separately by overdrafts versus other loans and advances.
• Branches must report their 10 largest credit exposures exceeding £10 million, correctly aggregating connected or associated borrowers.
• When an exposure is rated by multiple credit rating agencies, branches must apply the specified rule for selecting the middle or lower rating.
• Exposures to highly rated central governments/banks, and intragroup placements meeting specified criteria, must be reported on the Exempt Large Exposures sheet rather than the standard Large Exposures sheet.

Applies to

Overseas Incorporated Banks (OIBs), Jersey branches of overseas incorporated banks, deposit-taking businesses subject to the Code of Practice for Deposit-taking Business