55/98
22 April 1998
BANK OF ENGLAND'S POWER TO COLLECT INFORMATION
Government Responds to Consultation
The Government's response to consultation on the Bank's power to collect information for monetary policy purposes is published today by the Treasury.
Most respondents welcomed the move to put the Bank's collection of information on a statutory basis. They acknowledged that it was largely intended to replace the existing voluntary scheme and did not imply an increase in costs or the reporting burden.
The Government wishes to ensure the burden of supplying statistical information is kept to a minimum, consistent with meeting the information needs of the Bank. The response assures financial statistics providers that the Bank will continue to consult on any major changes in the statistical system.
The Bank of England Bill also requires the Treasury to consult the appropriate bodies if any changes are proposed in the future to the range of financial affairs on which information can be collected, or to the categories of institutions who are required to supply information.
The Government's Response was published in response to a Parliamentary Question from Derek Twigg [Halton].
NOTES TO EDITORS
1. Media copies of the Government's Response can be obtained from Fiona Hamilton in the Treasury Press Office on 0207 270 5185.
2. Non-media copies can be obtained from the Treasury Public Enquiry Unit on 0207 270 4558.
3. A background note on who is required to provide information and the type of information that the Bank of England will be able to collect is attached.
4. Clause 17 of the Bank of England Bill sets out the relevant powers.
BACKGROUND NOTE ON THE BANK OF ENGLAND'S POWERS TO
COLLECT INFORMATION
Who is required to supply information?
The Bank of England Bill provides that the Bank may require information from an undertaking which has a place of business in the United Kingdom and:
- is an authorised institution, or former authorised institution, within the meaning of the Banking Act 1987;
- is a European institution within the meaning of the Banking Coordination (Second Council Directive) Regulation 1992 which has lawfully established a branch in the United Kingdom for the purpose of accepting deposits or other repayable funds from the public;
- is a building society within the meaning of the Building Societies Act 1986;
- falls within the subsector 'other monetary financial institutions', as defined in Annex A to Council Regulation (EC) No. 2223/96, and is not a credit institution;
- carries on a business of granting credits (e.g. mortgages) secured on land used for residential purposes, and is not a credit institution;
- is a financial holding company as defined by Article 1 of Council Directive 92/30/EEC;
- has issued a relevant debt security, and is not a credit institution; and
- has acted as an agent in connection with arranging or managing the issue of relevant debt security, and is not a credit institution.
What information will be collected?
The Treasury proposes that the Bank should be able to collect information from institutions about their:
- financial assets and liabilities (balance sheet and transactions);
- off-balance sheet financial assets, liabilities, and commitments (e.g. guarantees and commitments to extend credit);
- transactions in income and expenditure accounts and capital expenditure;
- interest rates and other fees and commissions charged for the provision of financial services, including charges;
- agency business on behalf of the reporting institution's customers, including fiduciary business, fund management and custody holdings; and
- assets and liabilities resulting from inward direct investment in reporting institutions and from their direct investment abroad, including transactions and changes to ownership; and
- issuance and redemptions of securities.