Question ID
2013_136
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Liquidity risk
Article
417
Paragraph
b
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
-
Name of institution / submitter
HSBC Holdings PLC
Country of incorporation / residence
UK
Type of submitter
Credit institution
Subject matter
Transfer Restrictions
Question

There is no definition within the Regulation of 'Transfer Restrictions' referred to in article 417(b) with regards to excess liquid assets in third countries

Background on the question

Transfer restrictions could include existing large exposure limits, but by definition these are assumed to be 'relaxed' by European national authorities, so existing large exposure limits applicable to third countries could also not be seen as 'transfer restrictions'.

Submission date
Final publishing date
Final answer

For the purposes of Article 417(b) of Regulation (EU) No 575/2013 (CRR), transfer restrictions are existing restrictions imposed under applicable laws, regulations and supervisory requirements.

Accordingly, it would be appropriate for institutions to have processes in place to capture all third country liquidity transfer restrictions to the extent practicable, and to monitor the rules and regulations in the third country jurisdictions in which the group operates and assess their liquidity implications for the group as a whole.

Status
Final Q&A
Answer prepared by
Answer prepared by the EBA.
Note to Q&A
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.

Disclaimer

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