Regarding the ALMM T71, CONCENTRATION OF COUNTERBALANCING CAPACITY BY ISSUER/COUNTERPARTY, do we show separately central banks’ exposures and government securities for the same country?
Hi, regarding the ALMM T71 I am in favour of showing separately central banks’ exposures and government securities; the main reasons would be: Most of the central banks, although state entities, are independent institutions not subordinated to the Government The name of the template is ‘CONCENTRATION OF COUNTERBALANCING CAPACITY BY ISSUER/COUNTERPARTY’ not by country as it will be our case We have to show ‘The issuer/counterparty name recorded shall be the legal entity title of the company which has issued the assets’; Central bank is an entity Ministry of Finance is another entity; state/government is an ‘abstract’ term The instructions for column 030 distinctly present Central Banks and General Governments as economic sector classes for counterparties to be allocated On the other hand, if you consider them as being connected entities they might be shown together as government exposure of the respective country.
According to the instructions for completing the concentration of counterbalancing capacity template C 71.00 (Annex XXIII of final draft implementing technical standard (ITS) on additional liquidity monitoring metrics under Article 415(3)(b) of Regulation (EU) No 575/2013 (EBA/ITS/2013/11/rev1 (of 24 July 2014))), in column 030, issuer and counterparty sectors are allocated to every counterparty on the basis of FINREP economic sector classes: (i) Central Banks; (ii) General Governments; (iii) Credit institutions; (iv) Other financial corporations; (v) Non-financial corporations; (vi) Households.
Consequently exposures to Central Banks and exposures to Government are reported separately.
DISCLAIMER:
The present Q&A on Supervisory reporting is provisional. It will be reviewed after the Implementing Regulation is in force and published in the Official Journal, which may differ from the text of the draft ITS to which this Q&A relates.