Geographic Assets and Liabilities Booked Outside Canada (GR)

Return files

GR – Sample return (XLSX, 25.7 KB)GR – Validation rules (XLSX, 85.7 KB)Change control log

Return of the Geographical Distribution of Assets and Liabilities Booked Outside of Canada

Purpose

This return provides foreign currency and Canadian currency information regarding the size and nature of a bank's claims, other exposures, and liabilities vis-à-vis residents of foreign countries and Canada that are booked outside of Canada. The data are an important source of information for analyzing international banking activity and are the basis for fulfilling Canada's reporting responsibilities to the Bank for International Settlements.

Statutory

Section 628 of the Bank Act and Section 24 of the Bank of Canada Act.

Application

This return applies to all banks with affiliates outside of Canada. Trust and Loan Companies are not required to submit this return.

Publication

Certain information is published on a total-for-all-banks basis in the Bank of Canada Banking and Financial Statistics, in Statistics Canada's International Accounts publications, in Statistics Canada's key socioeconomic database (CANSIM), and on the BIS website (www.bis.org).

Frequency

Quarterly

Contact person

Provide name and phone number of person to contact regarding any questions about this return.

Reporting dates

This return is to be completed as at the last day of each quarter and submitted to the Bank of Canada within 60 days of the reporting date.

Contact agency

Bank of Canada

List of country codes

Currency codes

1. Canadian currency
2. U.S. dollars
3. British pound sterling
4. Euro
5. Swiss francs
6. All other currencies
7. Japanese yen

General instructions

The information reported in Part I and II covers claims, other exposures, and liabilities booked at foreign branches, foreign agencies, foreign corporations controlled by the bank, and at foreign branches or offices of Canadian corporations controlled by the bank. International departments or divisions are considered to be residents of the country in which the office is located. The level of consolidation for this return should be the same as that for the balance sheet. The positions of investment dealer subsidiaries are to be consolidated into this return.

All foreign and Canadian currency claims, other exposures, and liabilities (whether vis-à-vis residents or non-residents of Canada) are to be reported on this return.

Separate data are required with respect to positions in Canadian dollars, U.S. dollars, British pound sterling, Euros, Swiss francs, Japanese yen and "all other foreign currencies". The foreign currency positions are to be converted into Canadian currency equivalent amounts at the exchange rates used to convert foreign currency amounts reported on the Balance sheet (M4), to maintain the consistency and comparability between these two reports^{Footnote 1}.

As of January 1, 1999, members of the European Monetary Union (EMU) merged their currencies into a new currency, the Euro. EMU members include: Austria, Belgium, Cyprus (2008), Estonia (2011), Finland, France, Germany, Greece (2001), Ireland, Italy, Latvia (2014), Lithuania (2015), Luxembourg, Malta (2008), Netherlands, Portugal, Slovakia (2009), Slovenia (2007) and Spain. Prior to January 1, 1999, EMU member currencies were reported in the "Other Currencies" column, with the exception of Deutsche Marks, which were reported separately. Beginning January 1, 1999, all Euro currency entries (i.e., entries for all EMU members) are reported in the "Euro" column.

Claims, other exposures, and liabilities are referred to as column numbers; this reference is for the purposes of reporting the return to the Bank of Canada. The residency of counterparties on both an immediate risk and ultimate risk (guarantor) basis is to be indicated according to a three-digit country code provided in the List of Country Codes. References to "sections" in these instructions are intended to refer to the various sections on the List of Country Codes.

All claims and other exposures are to be reported gross of any allowances for impairment. Accrued interest is to be excluded from all parts of the return. Exclude all gold and silver balances, net debit or credit items in transit vis-à-vis third parties and items reported as "other" assets and liabilities items on the month-end balance sheet, except obligations related to assets sold under repurchase agreements.

Claims, other exposures, and liabilities are to be initially classified on a geographical basis according to the mailing address of the counterparty, unless the bank is aware that the resident status of the counterparty is different from their mailing address. Foreign branches or foreign subsidiaries of Canadian corporations are classified as non-residents (making them residents of the foreign country in which they are operating), while branches or subsidiaries of foreign corporations operating in Canada are classified as residents. Claims, other exposures and liabilities vis-à-vis international organizations (multilateral development banks and other international organizations) are to be reported separately in section D of the return (see List of country codes).

Bearer term deposits, covered bonds, subordinated debt and other similar negotiable instruments for which the institution has no way of knowing the residency of the holder of such instruments are to be reported in section E (country code 935) on Part II of the return under the column 'Unallocated by sector'.

In section E of the list of country codes, reference is made to shipping loans. "Shipping loans" are defined to be those loans made upon the security of a ship to an entity whose address reflects its desire to fly "flags of convenience" (usually Liberian or Panama), and whose income is generated by chartering its ship to a resident of another country. Since it is difficult to ascertain where the borrower is domiciled and who the guarantor might be, these types of loans should be reported separately in section E (Unallocated, country code 930). It is not necessary to file any information regarding risk transfers for these types of loans.

For reporting purposes, total immediate risk claims (including local claims in local currency), outward risk and inward risk transfers, deposits payable, debt securities issued and repo transactions are further disaggregated by sector (Banks, Central banks, Non-bank financial institutions, Non-financial corporations, General government, Households, Total non-financial sector and Unallocated by sector). Bearer term deposits, covered bonds and other similar negotiable instruments for which the institution has no way of knowing the sector of the holder, may be reported under Debt securities issued - Unallocated by sector category.

International organizations other than those considered central banks do not need to be allocated by sector and may be reported under Unallocated by sector category.

Claims and outward and inward risk transfers are further broken down by type of claims (Cross-border, Local in Local currency, and Local in Foreign currency).

Claims, deposits payable and debts securities issued are also disaggregated by place of booking (US, UK, Developed reporting countries, Off-shore countries and Other).

Residual term to maturity breakdown (1 year or less, over 1 to 2 years, over 2 years and Unallocated) is to be reported for total claims (including local claims in local currency). Claims that cannot be classified by maturity, such as equity, should be assigned to the residual category "Unallocated". Subordinated debt with a remaining maturity 1 year or less is to be reported separately as an "of which" category under total subordinated debt. Banks' own issues of debt securities with original term to maturity of one year or less and long-term securities with remaining maturity of one year or less are to be reported separately as well.

With respect to the sector breakdown, the return makes use of the 1980 Statistics Canada Standard Industrial Classification (SIC) and the North American Industry Classification System (NAICS) to identify borrowers. The concept of institutional sectors used in this return conforms to the attached definition.

Note that Statistics Canada's Standard Industrial Classification speaks only to the Canadian situation. These must be adapted by institutions, unless specified otherwise, for borrowers outside of Canada.

Type of claim

"Cross-border" claims are defined as claims on residents of countries other than the country in which the claim is booked.

"Local" activities are those claims of an office of a bank made with residents of the country in which the office booking the claim is located.

• "Local claims in local currency" involve local claims denominated in the local currency of the country in which the banking office is located. Local currencies are defined as those that are issued by the relevant countries themselves or currencies whose issuance a country can influence as in the case of a monetary union.
• "Local claims in foreign currency" involve local claims denominated in non-local currency.

With the introduction of the Euro on January 1, 1999, the meaning of "Local claims in local currency" activities was broadened to recognize the Euro currency as the local currency of all of the countries in the European Monetary Union. For example, a claim against a German resident booked in Germany in French Francs would not have been considered "Local claims in local currency" prior to the introduction of the Euro, but is now classified as a "Local claims in local currency" claim beginning January 1, 1999.

Risk transfers

Information on claims reported on an immediate risk basis that can be reallocated to the country (and/or sector and/or type of claim) where the final risk lies, is to be reported by way of outward and inward risk transfers.

Risk transfers refer to credit risk mitigants that shift a bank's credit exposure from the immediate counterparty to a guarantor, to another counterparty or collateral that guarantees the claim.

The immediate counterparty is the direct party to a contract. For deposits accepted, the immediate counterparty is the depositor; for loans extended, the immediate borrower; for debt and equity securities holdings, the issuer of the securities; and for short sales of securities, the issuer of the securities borrowed or delivered in a reverse repurchase agreement.

The guarantor is the ultimate party to a contract, who is contractually bound to assume responsibility for the performance of the contract in the event of default by the immediate counterparty.

Risk transfers do not eliminate credit risk; they redistribute it across counterparties. For every outward risk transfer from the immediate counterparty, there is an equivalent inward risk transfer to the guarantor. For example, if a 1 million loan to a company in country A is guaranteed by the company's parent in country B, the guarantee results in an outward risk transfer from country A and an inward risk transfer to country B. For purposes of risk transfer, this transaction would be reported as follows:

There are four types of risk transfer recognized by the Basel Committee on Banking Supervision (BCBS) standards: parent guarantees to branches, explicit guarantees by parents and third parties, credit derivatives, and collateral. Criteria for recognizing these are defined in Table 1.

Risk transfers should be valued at face value or, for credit derivatives, notional value. If the face value of the risk transfer exceeds the value of the underlying claim to which it relates, then the value of the underlying claim should be used. Unadjusted values may be used, excluding haircuts and adjustments for future fluctuations in value.

If full credit protection is provided by more than one source – for example, from multiple guarantors or multiple forms of collateral – then the risk transfer that has the highest credit quality should be recognized. For instance, for a claim on a branch for which eligible collateral is posted, the risk transfer should be determined according to whether the counterparty's parent or the collateral is of higher credit quality. If partial credit protection is provided by multiple sources, then claims on a guarantor basis should be apportioned according to either a predefined share or from highest credit quality to lowest credit quality. Where national prudential standards differ from these guidelines, national standards may be followed.

Where banks are unable to allocate outward risk by country because the protection has been purchased to cover a group, e.g., an industry exposure, banks are to use a reasonable weighted-average allocation formula, e.g., weighted-average based on total claims of the group.

Table 2 provides a list of financial instruments that can be recognized as collateral and illustrates who should be considered the guarantor. The list consists of instruments that are judged to have sufficient market liquidity such that they can be liquidated promptly, mainly cash and securities (BCBS (2017b), paragraphs 146 to 149)^{Footnote 6}. Where national prudential standards for recognizing collateral differ from the BCBS's standards, national standards may be followed.

Securities repurchase (repo) agreements involve the provision of securities as collateral for a loan. In a repo, the immediate counterparty is the cash taker, who incurred a loan liability. The security is treated as collateral for the cash provider, and the guarantor is the issuer of the collateral. Similarly, for sale buybacks and securities lending, the guarantor is the issuer of the collateral.

In the case of security holdings, such as credit-linked notes and other collateralized debt obligations and asset-backed securities, a "look-through" approach should be adopted and the country of guarantor is defined as the country where the debtor of the underlying credit, security or derivative contract resides.

Where banks are unable to allocate the country and sector of the collateral issuer, e.g. in situations where a third party agent is used to process various poste-trade activity during the life of the transaction, the country and sector of the guarantor, i.e. inward risk transfer, may be reported as unallocated.

Inward and outward risk transfers are used to report transfer of risk from one sector to another sector, even when the country of the immediate risk and the country of ultimate risk (guarantor) are the same. The total for all outward risk transfers will equal the total for all inward risk transfers.

The following equation illustrates how to derive claims on an ultimate risk (guarantor) basis:

Credit derivatives, such as credit default swaps and total return swaps, that belong to the trading book of the protection buying reporting bank should only be reported under the "Derivatives" category, and all other credit derivatives should be reported as "Guarantees" by the protection seller (see Guarantees and Other Unused Credit Commitments below).

Derivatives – Ultimate risk (guarantor) basis

Banks are to provide data on financial claims (i.e., positive market values) resulting from derivative contracts. The data should be reported on an ultimate risk (guarantor) basis, i.e., the positions should be allocated to the country where the final risk lies. The data should cover in principle all derivative instruments that are reported in the context of the BIS regular OTC derivatives statistics. The data thus mainly comprise forwards, swaps and options relating to foreign exchange, interest rate, equity, commodity, and credit derivative instruments. As previously indicated, credit derivatives, such as credit default swaps and total return swaps, should only be reported under the item "derivatives claims" (and at market value) if they are held for trading by a protection-buying reporting bank. Credit derivatives that are not held for trading, e.g. those held in the banking book, should be reported as "risk transfers" (and at notional value) by a protection-buying reporting bank. For a protection selling reporting bank, all credit derivatives (i.e. CDS sold) should be reported as "guarantees") (see credit derivatives Table 3). Note that CDS sold should be reported at gross notional values and vis-à-vis the country of the underlying reference entity where the ultimate (final) risk lies.

Derivatives Valuation

Reporting of financial claims and liabilities resulting from derivatives instruments should be consistent with "replacement value" and compliant with accounting standards used to produce the balance sheet. All derivatives instruments with a positive market value should be treated as assets and those with a negative market value as liabilities. Derivatives should be reported on a contractual, post-novation basis.

For derivatives contracts that involve multiple or two-way payments, such as swaps and forwards, the market value is the net present value of the payments to be exchanged by counterparties between the reference date and the contract's maturity. In other words, forwards and swaps should be recorded as if they were one transaction and not two separate legs. Consider a foreign exchange (FX) swap in which a bank initially exchanges USD 140 million for EUR 100 million. Table 4 illustrates the notional and market values of the contract at different exchange rates. If the USD depreciates to EURUSD 1.5, then for the bank that receives USD at maturity the market value of the swap is negative and so is reported as a liability of USD 10 million. If the USD appreciates to EURUSD 1.3, then for the same bank the market value is positive and so the swap is reported as an asset.

Currency of denomination

For foreign exchange (FX) derivatives, the currency of denomination depends on the market value of the contract on the reference date. If an FX derivative is reported as an asset (i.e. the market value of the contract is positive), then the currency of denomination is the currency of the long leg: the currency received at maturity. If an FX derivative is recorded as a liability (i.e. the market value of the contract is negative), then the currency of denomination is the currency of the short leg: the currency paid at maturity. The switching between short and long positions reflects the bank's net exposure to movements in the exchange rate.

In the example from Table 4, where a bank exchanges USD 140 million for EUR 100 million: if the USD depreciates to EURUSD 1.5, then the bank that receives USD at maturity will report the swap as a liability of USD 10 million denominated in EUR. If the USD appreciates to EURUSD 1.3, then the same bank will report the swap as an asset of USD 10 million denominated in USD.

Note that all foreign currency positions are to be converted into Canadian currency for reporting purposes.

Guarantees and Other Unused Credit Commitments

Data are to be reported on exposures to the reporting bank via guarantees and unused credit commitments other than guarantees. These are to be reported on an ultimate risk (guarantor) basis, i.e., the positions allocated to the country where the final risk lies. Both types of data should be reported to the extent that they represent the unutilized portion of both binding contractual obligations and any other irrevocable commitments. Performance bonds and other forms of guarantee should only be reported if, in the event of the contingency occurring, the resulting claims would have an impact on total balance sheet claims. Guarantees or commitments that can be cancelled unconditionally are presumed to be revocable and thus should not be included. A more detailed definition of guarantees and other credit commitments and a non-exhaustive list of typical instruments that qualify as guarantees and other credit commitments are provided below.

"Guarantees" are contingent liabilities arising from an irrevocable obligation to pay a third-party beneficiary when a client fails to perform some contractual obligation. They include secured, bid and performance bonds, warranties and indemnities, confirmed documentary credits, irrevocable and standby letters of credit, acceptances and endorsements. Guarantees extended also include the contingent liabilities of the protection seller of credit derivatives instruments (see credit derivatives Table 3).

"Other unused credit commitments" are arrangements that irrevocably obligate an institution, at a client's request, to extend credit in the form of loans, participation in loans, lease financing receivables, mortgages, overdrafts or other loan substitutes or commitments to extend credit in the form of the purchase of loans, securities or other assets. Normally commitments involve a written contract or agreement and some form of consideration, such as a commitment fee. This definition is identical to that used in the Capital Adequacy Return. Include customers' liability under acceptances (Assets 4 of the month-end balance sheet). Do not include such items as letters of awareness or intent, comfort letters, or similar documents.

Contingent liabilities resulting from guarantees and credit commitments should be valued at face value or the maximum possible exposure.

Specific instructions

Part I – Assets and other exposures

Positions on an immediate risk basis

Columns 128, 129 and 90- Deposits with Banks, Central banks and Financial Institutions, and Bank notes and other coin

Deposits with other banks, central banks and financial institutions are to be reported geographically according to the location of the institution's branch where the deposit is held. Banks' holdings of notes and coins that are in circulation and commonly used to make payments are also to be reported in these columns. Due to the impossibility of allocating euro notes to the specific issuing euro area country, these banknotes and coins are to be allocated as claims on the European central bank (C923).

Exclude net debit items in transit.

Columns 130, 91, 92, 93, 94, 95, 96, 97, 133, 98, 424, 426, 427, 428, 429, 430, 136, 433, 434, 435, 108, 109, 436, 111 and 139 - Securities

Securities are to be reported at balance sheet value, gross of any allowance for impairment and are to be reported geographically according to the country of residence of the issuer. Short-term securities are those with an original term to maturity of one year or less, with the exception of Government of Canada securities where short-term securities are those with a remaining term to maturity of 3 years or less

Columns 145, 437, 113, 114, 115, 116, 117, 118 and 119- Loans

All loans are to be reported at balance sheet value, gross of any allowance for impairment. Loans include lease receivables. Report reverse repurchase agreements included in loans under "of which" category 119.

Column 149 - Total Claims

Report the total of columns 128, 129, 90, 139, 145, 437, 113, 117 and 118.

Columns 60, 61, 62, 150 and 63- Distribution of Total Claims by Place of Booking

The total of column 149 is to be distributed according to the country in which the claim is booked. Other developed reporting countries (column 62) consist of countries included in the attached list of developed reporting countries – except for Canada, the U.S., and the UK. Offshore countries (column 150) consists of all countries included in section B of the list of country codes (Offshore centers). "Other" (column 63) includes all other countries other than Canada, the U.S., the U.K., other developed reporting countries, and off-shore countries.

Columns 151, 152, 153 and 425 - Distribution of Total Claims by Residual Term to Maturity

Distribute total claims (column 149) according to residual term to maturity. The maturity distribution should reflect amortization periods or final maturity dates, rather than interest adjustment or rollover dates. Installment loans should be allocated to the periods in which the installment payments are made. Demand loans should be classified as claims with a maturity of one year or less. If a claim involves a sinking fund, use the final maturity date. Equities are to be included in column 425 (unallocated) along with the data for which it is not necessary to report maturity, e.g., deposits with individual banks, securities holdings of specific issues amounting to $200,000 or less, and loans made under authorizations of $200,000 or less.

Columns 431, 432 and 157 – Distribution of Total Claims by Type of Claim

Distribute total claims (column 149) according to type of claims, i.e., cross border, local claims in foreign currency, or local claims in local currency. See general instructions regarding more details on types of claims.

Column 158 – of which: Claims on units of banks with head offices in developed reporting countries

Report the portion of local claims in local currency (column 157) that represents claims on units of banks that have their head office in developed reporting countries (see List of developed reporting countries).

Columns 441, 185, 186, 187, 188, 189, 190, 191 451, 452, 453 and 455 - Distribution of Local Claims in Local Currency by sector and residual term to maturity

Distribute local claims in local currency (column 157) according to the sector and residual term to maturity. The maturity distribution should reflect amortization periods or final maturity dates, rather than interest adjustment or rollover dates. Installment loans should be allocated to the periods in which the installment payments are made. Equities are to be included in column 455 (unallocated) along with the data for which it is not necessary to report maturity, e.g., deposits with individual banks, securities holdings of specific issues amounting to $200,000 or less, and loans made under authorizations of $200,000 or less.

Risk transfers

Columns 461, 380, 381, 382, 383, 384, 385, 386, 464, 465, 466 and 467 - Outward Risk Transfers

Report the amounts in column 149 which are guaranteed or assured through some type of commitment by a party in another country or another sector in the same country, or that should be transferred to another type of claim. For example, a claim might be considered "cross border" vis-à-vis the immediate risk but "local" vis-à-vis counterparty of ultimate risk (see general instructions).

Columns 471, 387, 388, 389, 390, 391, 392, 393, 474, 475, 476 and 477 - Inward Risk Transfers

Report the amount of any guarantees and other types of credit commitments made by residents of each country related to claims that the reporting bank has on residents of other countries or another sector in the same country, or that should be transferred to another type of claim.

Positions on an ultimate risk (guarantor) basis

Column 480 – Total Claims on Ultimate Risk (Guarantor) Basis

Report the total of columns 149 less 464 plus 474.

Columns 491 and 492 – Unused Credit Commitments

Report separate amounts for "guarantees" and "other" types of unused credit commitments on an ultimate risk (guarantor) basis (see general instructions). When the currency of future borrowings is not known at the reporting date, report such commitments under the currency in which the maximum authorized drawdown for the loan is stated.

Columns 493 – Derivatives

Report the market value of OTC derivative contracts on an ultimate risk (guarantor) basis (see general instructions).

Part II - Liabilities

Columns 500, 505, 510, 515, 520, 525, 530 and 535 - Deposits Payable

Report debt instruments that are not negotiable and are represented by evidence of a deposit.

Columns 500 ‑ Deposits payable to banks

Deposits payable to other banks are to be classified geographically according to the residency of the branch of the depositing bank. Exclude net credit items in transit.

Column 505 ‑ Deposits payable to central banks and other official monetary authorities

Include deposits payable to central banks and other official monetary authorities (see List of central banks and other official monetary authorities).

Columns 510, 515, 520, 525, 530, 535 ‑ Deposits payable to non-banks and unallocated by sector

Report deposits payable to Financial institutions, Non-financial corporations, General government, Households, Total non-financial sector and deposits unallocated by sector.

Columns 540, 545, 550, 555, 560, 565, 570, 575, 580 and 585 – Debt Securities Issued

Columns 540, 545, 550, 555, 560, 565, 570, 575

Report debt securities that are negotiable financial instruments serving as evidence of a debt. Negotiability refers to the fact that legal ownership of the instrument is readily capable of being transferred from one owner to another by delivery or endorsement. While any financial instrument can potentially be traded, negotiable instruments are designed to be traded on an organized exchange or "over the counter" (OTC), although actual trading is not a necessary condition for negotiability. The OTC market involves parties negotiating directly with one another, rather than on a public exchange^{Footnote 7}.

The most common types of debt security include bills, bonds, notes, negotiable certificates of deposit, commercial paper, debentures, asset-backed securities, and similar instruments normally traded in the financial markets that serve as evidence of a debt.

Common types of debt security are those sold on:

• A coupon basis, stipulating that periodic interest, or coupon payments will be made during the life of the instrument and that the principal will be repaid at maturity.
• An amortized basis, stipulating that interest and principal payments will be made in installments during the life of the instrument.
• A discount, or zero-coupon basis, whereby a debt security is issued at a price that is less than its face (or par) value, and the interest and principal are paid at maturity.
• A deep discount basis, whereby a debt security is issued at a price that is less than face value, and the principal and a substantial part of the interest are paid at maturity.
• An indexed basis, which ties the amount of interest and/or principal payment to a reference index, such as a price index or an exchange rate index, or to the price of a commodity (e.g., gold) (See Table 5 for list of Types of debt securities)

Column 580 – "of which" category

Report debt securities included in categories 540, 545, 550, 555, 560, 565, 570, 575 with an original term to maturity of one year or less.

Column 585 – "of which" category

Report long term debt securities (original maturity over one year) included in categories 540, 545, 550, 555, 560, 565, 570, 575 with remaining term to maturity of one year or less.

Column 176 Total of all deposits payable and debt securities issued

Report the total of columns 500, 505, 510, 530, 535, 540, 545, 550, 570 and 575.

Columns 80, 81, 82, 177 and 83 - Distribution of Total Liabilities by Place of Booking

The total of column 176 is to be distributed according to the country in which the liability is booked. Other developed reporting countries (column 62) consist of countries included in the attached list of developed reporting countries – except for Canada, the U.S., and the UK. Offshore countries (column 150) consist of all countries included in section B of the list of country codes (Offshore centers). The "other" (column 63) includes all other countries other than Canada, the U.S., the U.K., other developed reporting countries, and off-shore countries.

Column 178 and 306 - Subordinated debt

Report subordinated debt outstanding. If residency of the holder is unknown, report these amounts in Section E (country code 935).Subordinated debt with a remaining maturity of up to and including one year should also be reported under column 306.

Column 179 ‑ Local Liabilities in Local Currency included in Total column 176

Report the amounts in column 176 that are deposits payable to residents of the country in which the office of the bank that has booked the liability is located and that are denominated in the local currency of that country. For this purpose, local currencies can be defined as those that are issued by the relevant countries themselves or currencies whose issuance a country can influence as in the case of a monetary union. Include these local liabilities in all preceding columns. With the introduction of the Euro on January 1, 1999, the meaning of "Local in local currency" activities was broadened to recognize the Euro currency as the local currency of all of the countries in the European Monetary Union (EMU). For example, a deposit payable to a German resident booked in Germany in French Francs would not have been considered "Local in local currency" prior to the introduction of the Euro, but is now classified as a "Local in local currency" liability beginning January 1, 1999.

Other Liabilities

Columns 590, 595, 600, 605, 610, 620, 625 and 315 – Repurchase agreements

Repurchase agreements are to be reported geographically according to the location and sector^{Footnote 8} of the repo counterparty.

Reconciliation with Month end Balance Sheet (T2 report)

All banks are required, as at the end of each calendar quarter, to reconcile the information reported on this return and the Geographical Distribution of Assets and Liabilities Booked in Canada Return with that reported on the month‑end balance sheet (M4).

The Quarterly reconciliation of the geographical distribution return with the consolidated monthly return of assets and liabilities (T2) is to be submitted within 60 days of the calendar quarter. Banks that only report the Booked in Canada return (GQ) should submit their reconciliation within 40 days of the calendar quarter.

Positions to be reported are shown below:

Claims

Total currency and foreign currency claims (excluding cash and cash equivalent) reported in the Geographical Return as at the end of the calendar quarter:

• Columns 6−528−110−529+149−128−129−90

Total currency and foreign currency amounts excluded from Quarterly Geographical Return:

• Individual and Group Allowance, Other
• Other (specify)

Total currency and foreign currency claims (excluding cash and cash equivalents) reported on consolidated monthly balance sheet as at the end of the calendar quarter:

• M4 Section 1-Assets, 2, 3

Deposits

Total currency and foreign currency deposits reported in the Geographical Return as at the end of the calendar quarter:

• Columns 22, 176, 178 and 664

Total currency and foreign currency amounts excluded from Quarterly Geographical Return:

• Specify

Total currency and foreign currency deposits reported in consolidated monthly balance sheet:

• Section II – Liabilities, 1,2 and 7

Deposit Liabilities (K4) compare (part of T2 report)

Bearer deposit notes and other negotiable fixed-term notes reported on Deposit Liabilities return (K4) are compared to Debt securities issued, reported on this return and the Geographical Distribution of Assets and Liabilities Booked in Canada return.

List of developed reporting countries

• Australia
• Austria
• Belgium
• Canada
• Denmark
• Finland
• France
• Germany
• Greece
• Ireland
• Italy
• Japan
• Luxembourg
• Netherlands
• Norway
• Portugal
• Spain
• Sweden
• Switzerland
• United Kingdom
• United States

Definitions of Financial Flow Sectors

Note that the conceptual framework of Financial Flow Sectors set out below speaks only to the Canadian situation.

These sectors and a brief explanation of them are:

I. Provincial and/or Municipal Government

Include transactions with social insurance programs operated by governments (e.g., Workmen's Compensation Board), non-trusteed public service pension plans operated outside the governmental budgetary framework (e.g., Public Service Superannuation Fund (Ontario)) and public hospitals.

II. Public Financial and Non-Financial Institutions

These are defined as enterprises which are of a commercial nature and charge a price for their goods and services related to their costs of production. Typically, these institutions are engaged in manufacturing, lending, insurance, transportation, communication, the provision of electric power, and the distribution of liquor through provincial liquor boards.

Institutions included in this category typically are characterized by the following:

1. the institution must have a statutory basis which directs it to produce a good or a service for sale on the market at a price related cost,
2. the institution maintains financial accounts separate from those of the government which established it and charges costs of production against revenue,
3. management of the institution is relatively autonomous.

Not included are organizations which:

1. are wholly or primarily engaged in the business of effective intergovernmental flows of funds (e.g., Alberta Capital Finance Authority), or
2. wholly or primarily engaged in the business of selling their output to the government which established them. Such organizations are included in their respective government sectors.

A. Public Financial Institutions

Include the Canada Deposit Insurance Corporation, Canada Mortgage and Housing Corporation, Export Development Canada, Farm Credit Canada, Business Development Bank of Canada and ATB Financial.

B. Public Non-Financial Enterprises

A list of organizations at the federal and provincial levels is provided in the manual. There is no corresponding list at the municipal level.

The determination for using the municipal category is left at the discretion of the institution.

III. Non-Financial Private Corporations

Includes all corporations and unincorporated branches of foreign corporations operating in Canada, except financial institutions and government enterprises.

IV. Private Financial Institutions

1. deposit-taking institutions - self-explanatory;
2. other deposit-taking institutions - includes credit unions and caisses populaires, trust companies and mortgage loan companies;
3. other private financial institutions - includes life insurance companies, fraternal benefit societies, fire and casualty insurance companies, trusteed pension plans, investment dealers, mutual funds, closed-ends funds, mortgage investment trusts, sales finance and consumer loan companies, and other private financial institutions (such as holding companies, financial leasing companies, venture capital companies and other business finance companies).

V. Unincorporated Business

Includes all businesses which are not incorporated under the law of Canada or a province and which are not unincorporated branches of foreign corporations (see III above).

Government Business Enterprises

The complete list of Federal and Provincial Government Enterprises can now be found under a new section entitled Government Business Enterprises (GBE).