Instruction No. 15/2023

Instruction No. 15/2023 Official Gazette No. 6/2023 2nd Supplement • 2023/06/26 .................................................................................................................................................................................................. Topics Statistics :: International Banking Statistics Mod. 99999911/T – 01/14 Index Text of the Instruction Annex to the Instruction Text of the Instruction Subject: International banking statistics on a consolidated basis The Organic Law of Banco de Portugal, approved by Law No. 5/98, of January 31, in its current wording, grants Banco de Portugal the authority to compile monetary, financial, exchange rate, and balance of payments statistics, particularly within the scope of its collaboration with the European Central Bank, and for this purpose, may require any entity, public or private, to directly provide the necessary information to fulfill said authority or for reasons related to its attributions. Under the terms of the National Statistical System Law, approved by Law No. 22/2008, of May 13, Banco de Portugal is part of the National Statistical System as a statistical authority. In accordance with the National Statistical System Law, statistical authorities, within their respective scope of action, may require the mandatory and free provision, from all services or bodies, natural and legal persons, of any elements necessary for the production of official statistics and establish the collection of data that, even if not relevant to the specific activity of the entities obliged to provide them, are of statistical importance. Banco de Portugal is a shareholder member of the Bank for International Settlements (BIS), and is bound to comply with its objectives, which include promoting cooperation among central banks. In July 2019, the BIS issued the “Reporting guidelines for the BIS international banking statistics” (“BIS Guidelines”), which replaced and updated the previous Guidelines on this matter, which dated from March 2013. The compilation and publication of international banking statistics are part of the work of the BIS Committee on the Global Financial System (“CGFS”), and this forum of central bank representatives has the mandate to monitor and analyze issues related to the financial system and recommend the adoption of policies that support central banks in fulfilling their responsibilities in terms of monetary policy and financial stability. Instruction No. 15/2023 Official Gazette No. 6/2023 2nd Supplement • 2023/06/26 Topics Statistics :: International Banking Statistics .................................................................................................................................................................................................. Mod. 99999911/T – 01/14 In execution of the CGFS mandate and in cooperation with central banks and other national authorities, the BIS compiles and publishes, namely, international banking statistics on a consolidated basis. Given that statistics are reported by reference to the exposures of the entities that make up the national banking system, it is necessary to collect this information, based on the principles and methodology defined by the BIS. Banco de Portugal participates in the work of the BIS, having, through Instruction No. 7/2017, of April 17, published in its Official Gazette No. 4/2017, regulated the reporting of statistical information for the compilation of international banking statistics on a consolidated basis (“Instruction No. 7/2017”). Said Instruction implemented the previous version of the BIS Guidelines. With its replacement by the 2019 BIS Guidelines, the corresponding update of national regulations must be promoted, which is promoted through the adoption of the present Instruction. Thus, the present Instruction redefines, namely, the universe of entities covered by the reporting obligation, by exempting the previously designated “non-resident banking groups (type B)” from its compliance. The reporting obligation remains, however, for banks, mutual agricultural credit banks, the Central Mutual Agricultural Credit Bank, and savings banks, headquartered in Portugal, excluding branches of credit institutions headquartered abroad. Additionally, new reporting requirements are established, corresponding to details of existing requirements, directed at entities resident in Portugal, and other clarifications and simplifications of some of the previously established requirements are promoted. The opportunity is taken to promote a comprehensive review of the regulatory text, with the purpose of promoting the coherence of the regulatory provisions and thus facilitating their understanding. For this reason, in addition to the review of the aspects indicated above, Instruction No. 7/2017 is fully replaced by the present Instruction. [The present Instruction was preceded by a hearing of interested parties, under the terms of Article 100 of the Administrative Procedure Code, approved by Decree-Law No. 4/2015, of January 7, in its current wording.] In these terms, Banco de Portugal, in the use of the authority conferred upon it by Article 13 of the Organic Law of Banco de Portugal, approved by Law No. 5/98, of January 31, in its current wording, and by Articles 3 to 5 and 19 of the National Statistical System Law, approved by Law No. 22/2008, of May 13, with a view to applying the “Reporting guidelines for the BIS international banking statistics”, of July 2019, and in accordance with Articles 3 and 17 of the BIS Statutes, determines the following: Instruction No. 15/2023 Official Gazette No. 6/2023 2nd Supplement • 2023/06/26 Topics Statistics :: International Banking Statistics .................................................................................................................................................................................................. Mod. 99999911/T – 01/14 Article 1 Purpose

1. The present Instruction regulates the reporting of statistical information to Banco de Portugal for the compilation of international banking statistics on a consolidated basis.
2. The statistical information compiled under this Instruction is intended to meet the information needs of Banco de Portugal in the exercise of its statistical function, including for the purpose of compiling and reporting statistics to the Bank for International Settlements (BIS), and may be used in the exercise of other functions, namely supervision and financial stability. Article 2 Entities Covered
3. The present Instruction applies to banks, mutual agricultural credit banks, the Central Mutual Agricultural Credit Bank, and savings banks, which are headquartered in Portugal, hereinafter referred to as «entities».
4. For the purposes of the preceding paragraph, a parent company headquartered in Portugal and part of a group is also considered an entity.
5. Branches of credit institutions headquartered abroad are excluded from the provisions of this article. Article 3 Information Reporting
6. Entities are subject to a reporting obligation to Banco de Portugal concerning international banking statistical information on a consolidated basis.
7. The information provided for in the preceding paragraph must be reported in accordance with the annex to the present Instruction, which forms an integral part thereof.
8. Banco de Portugal provides the entities covered by the present Instruction, through the BPnet electronic communication system referred to in paragraph 1 of Article 6, a Procedures Manual for the Compilation of International Banking Statistics on a Consolidated Basis, hereinafter referred to as «Procedures Manual», with the aim of facilitating and concretizing the technical and operational aspects related to the fulfillment of the reporting obligation established by this article.
9. Entities are obliged to provide all clarifications requested by Banco de Portugal regarding the reported information, including for quality control purposes. Article 4 Scope of Consolidation
10. Entities apply the present Instruction in accordance with the scope of consolidation considered for the purpose of prudential supervision information reporting, and taking into account the highest level of consolidation applicable in Portugal.
11. If the entity is not included in the scope of consolidation of an entity subject to the reporting obligation provided for in the preceding Article 3, it must comply with the reporting obligation on an individual basis. Article 5 Reference Date, Periodicity, and Reporting Deadline
12. The information to be reported under Article 3 has as its reference date the last day of the quarter to which it refers.
13. The information is reported on a quarterly basis.
14. The reporting obligation must be fulfilled within a maximum period of 60 days from the reference date of the quarter to which it refers. Article 6 Information Transmission
15. The information obligations established by the present Instruction must be fulfilled through the BPnet electronic communication system, regulated by Banco de Portugal Instruction No. 21/2020, of July 15, published in Official Gazette No. 7/2020.
16. In case of unavailability of the BPnet system for compliance with the provisions of the preceding paragraph, entities must observe the provisions of the Procedures Manual or contact the Banco de Portugal contact person referred to in paragraph 4 of Article 8. Article 7 Information Update Whenever the information reported to Banco de Portugal is subject to revision, the entity subject to the reporting obligation must update this information with Banco de Portugal, to ensure that it is permanently updated and in relation to all applicable reference periods. Article 8 Contact Persons
17. Entities shall appoint an effective contact person and at least one alternate contact person, qualified to respond to requests for clarification from Banco de Portugal.
18. To ensure a prompt response to questions raised by Banco de Portugal, the entity identifies the email address and telephone number and ensures the availability of at least one of the designated contact persons, obligatorily appointing a definitive or temporary substitute when such availability cannot be ensured.
19. Contact persons must request subscription to the international banking statistics service on a consolidated basis through BPnet.
20. Banco de Portugal indicates, in accordance with the Procedures Manual, its contact persons for clarifying doubts arising from the application of the present Instruction. Article 9 Reporting by New Entities Entities constituted after the entry into force of the present Instruction have a period of 150 days, counting from the last day of the first quarter of activity, to report the information provided for in Article 3, which must include information relating to all quarters elapsed since the beginning of activity. Article 10 Entry into Force and Revocation Provision
21. The present Instruction enters into force on December 1, 2023.
22. The present Instruction revokes Banco de Portugal Instruction No. 7/2017, of April 17, published in the Official Gazette of Banco de Portugal No. 4/2017. Annex to Instruction No. 15/2023 Official Gazette No. 6/2023 2nd Supplement • 2023/06/26 Topics Statistics :: International Banking Statistics .................................................................................................................................................................................................. Mod. 99999911/T – 01/14 Annex to the Instruction I. General Reporting Characteristics
23. Concept of Residence 1.1. "Residents" in a given country are institutional units that have a center of economic interest in the economic territory of that country, in accordance with the concept provided for in paragraph 4 of Article 1 of Council Regulation (EC) No. 2533/98, of November 23, 1998, concerning the compilation of statistical information by the European Central Bank, in its current wording. 1.2. In the Portuguese case, non-resident economic agents are considered to be those who have a center of interest outside the national economic territory, or who operate within it only on a temporary basis, for a period of less than one year. Embassies and consulates of other countries, located in Portugal, as well as international bodies or organizations, including the Bank for International Settlements (BIS) and the European Investment Bank, are also considered non-residents. 1.3. The national economic territory includes the Madeira free zone.
24. Identification of the Counterparty Entity 2.1. The identification of the counterparty entity is based on two distinct criteria: the immediate counterparty perspective and the ultimate counterparty perspective. 2.2. According to the immediate counterparty perspective, the counterparty entity is the one with whom the institution entered into the contract, regardless of whether its fulfillment can be guaranteed by a third party involved. 2.3. Within the scope of the ultimate counterparty perspective, the counterparty entity will be the one that effectively guarantees the fulfillment of the agreement entered into, and due to the nature of the entities involved or the characteristics of the agreement entered into, it may not necessarily be the same one that entered into the agreement. II. Information to be Reported
25. The tables to be reported to Banco de Portugal within the scope of international banking statistics on a consolidated basis are: 1.1. Table A1 – Immediate counterparty perspective, on a consolidated basis. 1.2. Table A2 – Ultimate counterparty perspective, on a consolidated basis.
26. The entities referred to in paragraph 2 of Article 4 of the present Instruction are exempt from filling in Table A1. Table A1 – Immediate counterparty perspective, on a consolidated basis Unit: Thousands of euros | By country of residence of the counterparty (including Portugal) | Assets | External assets and local assets in foreign currency | | | | | | | | | | | | | | | | | | |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| | | | d.q. Local assets in foreign currency | By residual maturity | | | | By counterparty sector | | | | | | | | | | | | | | | | | Up to 1 year | 1 to 2 years | More than 2 years | Not identified | Banks | Public sector | Non-banking private sector | | | | | | | | | | | | | | | | | | | | | Non-allocated | Non-banking financial institutions | | | | | | | Non-financial private sector | | | | | | | | | | | | | | Money market funds | Investment funds, except money market funds | Other financial intermediaries, except insurance companies and pension funds | Financial auxiliaries | Captive financial institutions and money lenders | Insurance companies | Pension funds | Non-financial corporations | Individuals | | | | | | | | | | | | | | | | | | | | | Non-allocated | Households | Non-profit institutions serving households | | (...) | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | (13) | (14) | (15) | (16) | (17) | (18) | (19) | (20) |

Unit: Thousands of euros

By country of residence of the counterparty (including Portugal)	Assets	Local liabilities in local currency
		By counterparty sector
		Banks	Public sector	Non-banking private sector
				Non-allocated	Non-banking financial institutions							Non-financial private sector
					Money market funds	Investment funds, except money market funds	Other financial intermediaries, except insurance companies and pension funds	Financial auxiliaries	Captive financial institutions and money lenders	Insurance companies	Pension funds	Non-financial corporations	Individuals
													Non-allocated	Households	Non-profit institutions serving households
(...)	(21)	(22)	(23)	(24)	(25)	(26)	(27)	(28)	(29)	(30)	(31)	(32)	(33)	(34)	(35)	(36)

Unit: Thousands of euros | By country of residence of the counterparty (including Portugal) | Assets | Local liabilities in local currency | d.q. loans/deposits | Dq: loans / deposits | | | | | | | | | | | | | | |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| | | | By counterparty sector | | | | | | | | | | | | | | | | | | Banks | Public sector | Non-banking private sector | | | | | | | | | | | | | | | | | | Non-allocated | Non-banking financial institutions | | | | | | | Non-financial private sector | | | | | | | | | Money market funds | Investment funds, except money market funds | Other financial intermediaries, except insurance companies and pension funds | Financial auxiliaries | Captive financial institutions and money lenders | Insurance companies | Pension funds | Non-financial corporations | Individuals | | | | | | | | | | | | | | | | Non-allocated | Households | Non-profit institutions serving households | | (...) | (37) | (38) | (39) | (40) | (41) | (42) | (43) | (44) | (45) | (46) | (47) | (48) | (49) | (50) | (51) | (52) | (53) |

Table A2 – Ultimate counterparty perspective, on a consolidated basis Unit: Thousands of euros

By country of residence of the counterparty (including Portugal)	Assets	Derivatives	Guarantees	Credit Commitments	Risk Transfers
					Inward	Outward	By counterparty sector
							External Assets	Local Assets	Banks	Public sector	Non-banking private sector							Non-financial private sector
										Non-allocated	Non-banking financial institutions							Non-financial corporations	Individuals
											Money market funds	Investment funds, except money market funds	Other financial intermediaries, except insurance companies and pension funds	Financial auxiliaries	Captive financial institutions and money lenders	Insurance companies	Pension funds
																		Non-allocated	Households	Non-profit institutions serving households
(...)	(54)	(55)	(56)	(57)	(58)	(59)	(60)	(61)	(62)	(63)	(64)	(65)	(66)	(67)	(68)	(69)	(70)	(71)	(72)	(73)