Banks are receiving funds from third party institutions under asset management agreements. The agent banks therefore may include these funds under their on balance sheet liabilities. Accordingly, shall third party funds be considered for the calculation of this metric if they are included in the agent’s balance sheet? Moreover, may these funds be considered as funding and reported per single counterparty?
From the ITS and EBA Q&A 2015_1829, it is not clear whether this product must be reported under bank’s liabilities since it fits none of the product types proposed (UWF, UWNF, REPO, CB, ABS, IGCP).
In template C 67.00 of Annex XVIII to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting), institutions shall report all financial liabilities other than derivatives and short positions.
Funds received under asset management agreements, which are included in the institutions balance sheet liabilities, shall be reported into the most relevant product type(s) listed in the instructions for template C 67.00 as provided in Annex XIX to the ITS on Supervisory Reporting. The counterparty identified in the reporting should be the third party institution supplying the funds to the bank in its role as an asset manager.