Question ID:
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Liquidity risk
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
Article 28(1)
Disclose name of institution / entity:
Type of submitter:
Credit institution
Subject Matter:
Definition of a 'Deposit Broker'

What is the definition of a deposit broker?

Background on the question:

If a wide definition of a deposit broker is used, non-operational deposits from financials could be taken by banks via a deposit broker and would then be subject to a 40% outflow insterad of a 100% outflow. The US LCR rules cross refer to the FDIC definition of a deposit broker which requires these deposits to be covered by FDIC insurance.

Date of submission:
Published as Final Q&A:
Final Answer:
If a term is not defined in the Regulation, the Q&A instrument cannot be used to provide a formal, legal definition. Non-defined terms must be interpreted according to the general meaning of the terms used, together with other recognised interpretative methods, such as contextual interpretation and by identifying the objective of the concerned provisions. From the context, the definition of deposit brokers should be restricted to a narrow interpretation.
This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Financial Stability, Financial services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.
Final Q&A
Answer prepared by:
Answer prepared by the European Commission because it is a matter of interpretation of Union law.
Note to Q&A:

Update 26.03.2021: This Q&A has not yet been reviewed by the European Commission in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR).