Section C - Bills outstandingSection C - Bills outstanding

Section C - Bills outstanding

Bills outstanding include acceptance and endorsement facilities. The rate reported should equate to the annual cost to the customer of a bill. It should comprise the bill discount rate expressed as annual rate, plus all fees - other than establishment fees - charged for providing the facility, also expressed as an annual percentage of the bills' face value. Where the discount rate on a bill is not known, an estimate based on prevailing market rates should be used. Bill fees include acceptance or endorsement fees, facility fees, line fees, activation fees, usage fees, rollover fees and handling fees.

In addition to acceptance and endorsement facilities, loans priced off money market reference rates such as cash and bank bill rates should be included in Section C. Typically, the interest rate on these loans is reset periodically in line with changes in the prevailing reference rate. The interest rate charged to the borrower (including a margin for credit risk) should be reported. As an addendum item, report the total value of these funded loans for each size category.