The sector code used by the Bank of England to classify reporting entities.
To understand the underlying behaviour which is reflected in movements in economic and financial statistics, it is necessary to group those entities engaged in financial transactions into broad sectors with similar characteristics. Two of the systems of classification used in UK official statistics are based on analysis by sector and industry. For consistency, it is necessary to classify most banking accounts – deposits, loans and advances, etc. – according to both sector and industrial classifications.
The dataset used for sector classifications is the Office for National Statistics’ Public Sector Classification Guide, which lists current and former public sector bodies and is updated regularly to incorporate classification decisions made.
The main sectors for UK residents are monetary financial institutions, the public sector and the private sector (or ‘other UK residents’). Monetary financial institutions include the central bank (the Bank of England), firms with a permission under Part IV of the Financial Services and Markets Act 2000 to accept deposits (other than (i) credit unions; (ii) firms whose permission to accept deposits is only for the purpose of carrying out insurance business; and (iii) friendly societies), and European Economic Area (EEA) firms with a permission under Schedule 3 of the Financial Services and Markets Act 2000 to accept deposits through a UK branch. This includes UK banks and building societies and the UK branches of inwardly passporting EEA banks. The public sector consists of central government entities, public corporations and local government. Central government comprises government departments and quasi-government entities. Public corporations are corporate entities which are owned and controlled by the UK central or local government; in general they comprise corporations set up by Parliament and nationalised corporations. Local government includes new unitary authorities and other councils (for example, county, district, parish, and town) and their departments, and those entities which have taken over the assets and functions of the former metropolitan councils. ‘Other UK residents’ is further sub-divided: Financial corporations other than monetary financial institutions include other financial intermediaries, (such as securities dealers and non-bank credit grantors), insurance companies and pension funds and financial auxiliaries (such as entities regulating financial activities, fund management companies), which also embrace financial quasi-corporations. Non-financial corporations other than public corporations, to which are added non-financial quasi-corporations, are privately owned corporate entities located in the United Kingdom, for example BP plc. Other sectors are individuals and individual trusts, unincorporated businesses other than unlimited liability partnerships, and non-profit institutions serving households.