WNMNDUN BRAVO M.P.
061
14
Banks and other financial institutions in the United Kingdom; external liabilities and clalms
This lahle includes two types of institution. First, there are banks in the United Kingdom. Second, there are some miscellaneous financial institutions, namely, banks in the Channel Islands and the Isle of Man which have opted out of the banking sector, three non-banking-sector gold dealers and a small number of other financial institutions located on the mainland that are outside the banking sector but make loans to, or take deposits from, overseas residents. Banking sector institutions willi small extemal business do not provide geographical details at quarterly intervals. The business of these insutusions is included in 'unallocated".
The figures show gross liabilities to, and claims on, overseas banks and other overseas customers as recorded in the reporting institutions” books at the close of business on the last working day of each calendar quanter. The majority of these assets and liabilities are denominated in US dollars, and in order to reduce distortion in comparilund caused by fluctustions in exchange rates between reporting dates, all figures are shown in US dollars rather than sterling. Amounts of other currencies have been translated into dollars at the closing exchange rate for the reporting date. Forward commitments and unselled spot deals are not included in the series, which also excludes claims on customers arising from foreign currency acceptances and, before und December 1985, Nosting-rate noter and other invertments with an original maturity of one year or more.
The table includes liabilities and claims dezominated in sterling as well as these denominated in foreign currencies. This change in coverage was mentioned in a short note on UK banks' extemal liabilities and claims in sterling that appeared in the September 1983 Bulletin,
Page 192.
UK Babilitles
These comprise deposits and advances received by reporting institutions from overseas residents, and certificates of deposit issued in London and held by Overseas residents.
The series does not include official liabilities in foreign currencies arising from direct bomowing by the UK govenment and from drawings on central hank facilities.
Gross liabüides in this table include unallocated London certificates of deposit, the holders of which are unknown but me Vought to be mamusidusa. A further adjustment is inade to gross liabilities in respect of certain other minor items which are not allocated sectorally by repiring institutions Exit which are assumed to relate to overscàs residents. Also, an adjustment is made to correct the misidentification of labüities to, and claims on, overseas residents which is reflected in an imbalance in intra-banking sector claims. Intra-banking sector liabilities should equal intra-banking sector elkima; even after allowing for the incomplete institutional coverage, the figures as reported differ. Funds held by the Banque Centrale d'Algerie, acting as escrow agent in connection with arrangements for the return of US citizens detained in Iran, made in January 1981, have been classified here as liabilities to Middle East (Iran). Finally, intemational issues of securities (og eurosterling and foreign surrency bonds and PTMs) were included in extemal liabilities from the August 1988 Bulletin (see footnote (b) of the table). A break in series was recorded at March 1987. The data are included within 'unallocated by currency'.
UK claims
These comprise the reporting institutions' loans and advances to overseas residents; commercial bills and other negotiable paper drawn on overseas residents; lending under ECGD special schemes for exports, including arovunts refinanced; sterling acceptances given on behalf of overseas residents; and, with effect from end-December 1985, assett leased out under finance leases and holdings of certain overscar investments with an original maturity of one year or more. These overseas invesuments include securities with contractually defined repayment dates issued by overseas govemments,
overseas institutions such as the World Bank and corporate bodies registered abroad, except subsidiaries of the reporting Inathmilons. Investments in the share and loan capital of reputing institutions' overseas subsidiaries, and in securities without contractually defined repayment dates (eg equities), are excluded (for further details see the notes and definitions of the March 1986 Bulletin).
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