Due to limitations on the withdrawal of deposits, should individual deposits covered by a single cash pooling agreement be treated as individual deposits to which the outflow rates specified in Article 28 of the Delegated Regulation 2015/61 apply, or rather as a new type of product that would be covered by Article 23 of the Delegated Regulation? Alternatively, could inflows and outflows from cash pooling services be treated as interdependent inflows and outflows as per Article 26 of the Delegated Regulation? Or could the individual positive and negative balances covered by a single cash pooling agreement be considered on a net basis in order to determine the applicable outflows or inflows?
EBA QA 2013_170 specifies that “Articles 422(6) and 425(3) of Regulation (EU) No 575/2013 (CRR) permit the netting of inflows and outflows expected over the 30 day horizon from relevant derivative contracts only”. However this QA only refers to Part Six of the CRR and not to the Delegated Regulation No 2015/61 on the LCR.
According to Delegated Regulation (EU) 2015/61 (DR) the netting of inflows and outflows is only permitted for flows stemming from derivative transactions, as provided for by Articles 21 and 32(5). To the extent that cash pooling is not encompassing derivative transactions, netting within cash pooling agreements for other liquidity flows is therefore not explicitly provided for in the Delegated Regulation. Other inflows and outflows shall be reported separately and subject to the pertinent inflow and outflow rates.
The application of Article 26 of the Delegated Regulation and the treatment of outflows with inter-dependent inflows is subject to a specific authorisation from the relevant competent authority provided that all the conditions set forth by the same Article are fulfilled.
Update 26.03.2021: This Q&A has been reviewed in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR) and continues to be relevant.