EBA E-mail alert February 14, 2025

According to Annex V, Part 2, paragraph 285 (a) of Commission Implementing Regulation (EU) 2021/451 (ITS): '‘'Asset management’ shall refer to assets belonging directly to the customers, for which the institution is providing management.” Since these assets belong to the customers, they are generally not recognized in the balance sheet of the credit institution. It is not clear however if the cash deposited by customers that the institution manages on a discretionary basis should be recognized as a liability. Additionally, if this account would have a negative balance, an asset might be recognized. 

We would like to seek clarification regarding the classification of repurchase agreements (repos) in the context of the FINREP reporting framework.
Specifically, we am inquiring whether repurchase agreements with a maturity of less than or equal to one day, where the counterparty is a credit institution, can be reported under row 0040 (Other demand deposits) in report F01.01.