# Decision (EU) 2016/810 of the European Central Bank of 28 April 2016 on a second series of targeted longer-term refinancing operations (ECB/2016/10), Division —: Reclassifications (3.2C)

Extent: E+W+S+N.I.

Reclassifications record all other effects that are not related to net lending, as defined in point 4(b), but result in changes in the outstanding amounts of loans on the balance sheet, excluding securitised or otherwise transferred loans which are not derecognised.
These effects are not covered under the requirements laid down by Regulation (EU) No 1071/2013 (ECB/2013/33) and their impact is normally estimated on an aggregated basis when compiling macroeconomic statistics. However, they are important at the level of individual institutions (or TLTRO-II groups) in order to reconcile net lending and changes in outstanding amounts.
The following effects must be reported, in respect of the outstanding amounts of loans on the balance sheet, excluding securitised or otherwise transferred loans which are not derecognised and the usual convention of recording effects leading to reductions (increases) in outstanding amounts with a negative (positive) sign applies.
(1) Changes in the sector classification or area of residence of borrowers that result in changes in the reported outstanding positions which are not due to net lending and thus need to be recorded.
(2) Changes in the classification of instruments. These may also affect the indicators if the outstanding amounts of loans increase or decrease owing, for instance, to the reclassification of a debt security as a loan or a loan as a debt security.
(3) Adjustments that result from the correction of reporting errors, in accordance with instructions received from the relevant NCB pursuant to point (c) of Article 8(1).
In accordance with Article 7(6), corporate reorganisations and changes in the composition of TLTRO-II groups normally result in the need to resubmit the first data report to reflect the new corporate structure and TLTRO-II group composition. Hence, no reclassifications are used in respect of those events.
For additional information, see Section 1.6.3.4 of the Manual on MFI balance sheet statistics. However, the conceptual differences highlighted above should be taken into account for the purposes of deriving reclassification data at the level of individual institutions.

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Source: https://www.legislation.gov.uk/eudn/2016/10/annex/II/division/4/division/c/division/ii/division/3 (the official version)
Page: https://openlegislation.uk/eu-decision-2016-10/annex-II/division-4/division-c/division-ii/division-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.