Regulation (EU) No 1075/2013 of the European Central BankShow full title

PART 1 Definitions of instrument categories

1. This table provides a detailed standard description of the instrument categories, which national central banks (NCBs) transpose into national categories in accordance with this Regulation. The table does not constitute a list of individual financial instruments and the descriptions are not exhaustive. The definitions refer to the European system of national and regional accounts in the European Union (hereinafter the ‘ESA 2010’), laid down by Regulation (EU) No 549/2013.

2. For some of the instrument categories, maturity breakdowns are required. These refer to original maturity, i.e. maturity at issue, which is the fixed period of life of a financial instrument before which it cannot be redeemed, e.g. debt securities, or before which it can be redeemed only with some kind of penalty, e.g. some types of deposits.

3. Financial claims can be distinguished by whether they are negotiable or not. A claim is negotiable if its ownership is readily capable of being transferred from one unit to another by delivery or endorsement or of being offset in the case financial derivatives. While any financial instrument can be potentially traded, negotiable instruments are designed to be traded on an organised exchange or ‘over-the-counter’, although actual trading is not a necessary condition for negotiability.

4. All financial assets and liabilities must be reported on a gross basis, i.e. financial assets must not be reported net of financial liabilities.

Table A

Definitions of instrument categories of the assets and liabilities of FVCs

ASSET CATEGORIES
Category	Description of main features
1. Deposits and loan claims	For the purposes of the reporting scheme, this item consists of funds lent by FVCs to borrowers which are either evidenced by non-negotiable documents or not evidenced by documents It includes the following items: deposits placed by the FVC, such as overnight deposits, deposits with agreed maturity, and deposits redeemable at notice loans granted by the FVC claims under reverse repos against cash collateral: counterpart of cash paid out in exchange for securities purchased by the FVC at a given price under a firm commitment to resell the same (or similar) securities at a fixed price on a specified future date claims under securities borrowing against cash collateral: counterpart of cash paid in exchange for securities borrowed by the FVC For the purposes of this Regulation, this item also includes holdings of euro and foreign currency banknotes and coins in circulation that are commonly used to make payments
2. Securitised loans	For the purposes of the reporting scheme, this item consists of loans acquired by the FVC from the originator. Loans are financial assets created when creditors lend funds to debtors which are either evidenced by non-negotiable documents or not evidenced by documents This also includes: financial leases granted to third parties: financial leases are contracts whereby the legal owner of a durable good (hereinafter the ‘lessor’) conveys the risks and benefits of ownership of the asset to a third party (hereinafter the ‘lessee’). For statistical purposes, financial leases are treated as loans from the lessor to the lessee enabling the lessee to purchase the durable good. Financial leases granted by an originator, acting as the lessor, are to be recorded under the asset item ‘securitised loans’. The leased asset is shown on the balance sheet of the lessee and not the lessor bad debt loans that have not yet been repaid or written off: bad loans are considered to be loans in respect of which repayment is overdue or otherwise identified as being impaired holdings of non-negotiable securities: holdings of debt securities which are not negotiable and cannot be traded on secondary markets traded loans: loans that have de facto become negotiable are classified under the item ‘securitised loans’ provided that there is no evidence of secondary market trading. Otherwise they are classified as ‘debt securities’ subordinated debt in the form of deposits or loans: subordinated debt instruments provide a subsidiary claim on the issuing institution that can only be exercised after all claims with a higher status have been satisfied, giving them some of the characteristics of equity. For statistical purposes, subordinated debt is classified as either ‘securitised loans’ or ‘debt securities’ according to the nature of the instrument. Where the FVC’s holdings of all forms of subordinated debt are currently identified as a single figure for statistical purposes, this figure is classified under the item ‘debt securities’, on the grounds that subordinated debt is predominantly constituted in the form of debt securities, rather than as loans Securitised loans must be reported at nominal value, even if purchased from the originator at a different price. The counterpart to the difference between the nominal value and the purchase price must be included under ‘remaining liabilities’ This item includes securitised loans, irrespective of whether the prevailing accounting practice requires the recognition of the loans on the FVC’s balance sheet
3. Debt securities	Holdings of debt securities, which are negotiable financial instruments serving as evidence of debt, are usually traded on secondary markets or can be offset on the market, and do not grant the holder any ownership rights over the issuing institution This item includes: holdings of securities which give the holder the unconditional right to a fixed or contractually determined income in the form of coupon payments and/or a stated fixed sum at a specific date or dates, or starting from a date defined at the time of issue loans which have become negotiable on an organised market, i.e. traded loans, provided that there is evidence of secondary market trading, including the existence of market makers, and frequent quotation of the financial asset, such as provided by bid-offer spreads. Where this is not the case, they are classified as ‘securitised loans’ subordinated debt in the form of debt securities Securities lent out under securities lending operations or sold under a repurchase agreement remain on the original owner’s balance sheet (and are not recorded on the temporary acquirer’s balance sheet) where there is a firm commitment to reverse the operation and not simply an option to do so. Where the temporary acquirer sells the securities received, this sale must be recorded as an outright transaction in securities and entered in the temporary acquirer’s balance sheet as a negative position in the securities portfolio. This item includes holdings of debt securities that have been securitised, irrespective of whether the prevailing accounting practice requires the recognition of the securities on the FVC’s balance sheet
4. Other securitised assets	This item includes securitised assets other than those included under categories 2 and 3, such as tax receivables and commercial credits, irrespective of whether the prevailing accounting practice requires the recognition of the assets on the FVC’s balance sheet
5. Equity and investment fund shares/units	Financial assets that represent property rights in corporations or quasi-corporations. Such financial assets generally entitle the holders to a share in the profits of the corporations or quasi-corporations, and to a share in their net assets in the event of liquidation This item includes listed and unlisted shares, other equity, money market fund (MMF) shares/units and non-MMF IF shares/units Equity securities lent out under securities lending operations or sold under repurchase agreements are treated in accordance with the rules in category 3 ‘debt securities’
6. Financial derivatives	Financial derivatives are financial instruments linked to a specified financial instrument, indicator, or commodity, through which specific financial risks can be traded in financial markets in their own right This item includes: options warrants futures forwards swaps credit derivatives Financial derivatives are recorded at market value on the balance sheet on a gross basis. Individual derivative contracts with positive market values are recorded on the asset side of the balance sheet, and contracts with negative market values on the liability side of the balance sheet Gross future commitments arising from derivative contracts must not be entered as on-balance-sheet items This item does not include financial derivatives that are not subject to on-balance-sheet recording according to national rules
7. Non-financial assets (including fixed assets)	Tangible and intangible assets, other than financial assets. Fixed assets are non-financial assets which are used repeatedly or continuously by the FVC for more than one year This item includes dwellings, other buildings and structures, machinery and equipment, valuables, and intellectual property products such as computer software and databases
8. Remaining assets	This is the residual item on the asset side of the balance sheet, defined as ‘assets not included elsewhere’. This item may include: accrued interest receivable on deposits and loans accrued interest on holdings of debt securities amounts receivable which do not relate to the FVC’s main business

LIABILITY CATEGORIES
Category	Description of main features
9. Loans and deposits received	Amounts owed to creditors by the FVC, other than those arising from the issue of negotiable securities. This item consists of: loans: loans granted to the FVC which are either evidenced by non-negotiable documents or not evidenced by documents non-negotiable debt instruments issued by the FVC: non-negotiable debt instruments issued are generally to be classified as ‘deposit liabilities’. Non-negotiable instruments issued by the FVC that subsequently become negotiable and that can be traded on secondary markets are reclassified as ‘debt securities’ repos and repo-type operations against cash collateral: counterpart of cash received in exchange for securities sold by the FVC at a given price under a firm commitment to repurchase the same (or similar) securities at a fixed price on a specified future date. Amounts received by the FVC in exchange for securities transferred to a third party (‘temporary acquirer’) are to be classified here where there is a firm commitment to reverse the operation and not merely an option to do so. This implies that the FVC retains all risks and rewards of the underlying securities during the operation cash collateral received in exchange for securities lending: amounts received in exchange for securities temporarily transferred to a third party in securities lending operations against cash collateral cash received in operations involving the temporary transfer of gold against cash collateral
10. Debt securities issued	Securities issued by the FVC, other than equity, which are instruments usually negotiable and traded on secondary markets or which can be offset on the market and which do not grant the holder any ownership rights over the issuing institution. It includes, inter alia, securities issued in the form of: asset-backed securities credit-linked notes insurance-linked securities
11. Capital and reserves	For the purposes of the reporting scheme, this category comprises the amounts arising from the issue of equity capital by the FVC to shareholders or other proprietors, representing for the holder property rights in the FVC and generally an entitlement to a share in its profits and in its own funds in the event of liquidation. Funds arising from non-distributed benefits or funds set aside by the FVC in anticipation of likely future payments and obligations are also included. It includes: equity capital non-distributed benefits or funds specific and general provisions against loans, securities and other types of assets securitisation fund units
12. Financial derivatives	See category 6
13. Remaining liabilities	This is the residual item on the liabilities side of the balance sheet, defined as ‘liabilities not included elsewhere’ This item may include: accrued interest payable on loans and deposits accrued interest payable on debt securities issued amounts payable not related to the FVC’s main business, i.e. amounts due to suppliers, tax, wages, social contributions, etc. provisions representing liabilities against third parties, i.e. pensions, dividends, etc. net positions arising from securities lending without cash collateral net amounts payable in respect of future settlements of transactions in securities counterparts to the valuation adjustment, i.e. nominal less purchase price of loans Accrued interest payable on debt securities issued is required as a separate ‘of which’ item, unless the relevant NCB grants a derogation where the data can be derived or estimated from alternative sources