- Question ID
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2015_2301
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Liquidity risk
- Article
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Article 412(1), 460
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
- Article/Paragraph
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25(2) / 30(6)
- Type of submitter
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Credit institution
- Subject matter
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Reporting of retail deposits to internet banks that are also partly used as collateral for various broker services such as forex and other OTC derivatives.
- Question
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As per Commission Delegated Regulation EU of 10.10.2014 to supplement Regulation 575/2013 with regard to liquidity coverage requirements for credit institutions, it is stated that outflows from other retail deposits should be treated according to Article 25. Does this include retail deposits that are also partly used as collateral for broker services?
- Background on the question
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According to Article 25 other retail deposit should be scored on a scale according to a number of criteria 19s in Article 25 (2), yet it is unclear if retail cash deposits that qualify as collateral fall under this category or if they should rather be treated according to Article 30 (6). Retail clients have significantly different behaviour than financial clients and typically have deposits of which only a small part is used for broker services compared to financial clients. It would therefore appear as though Article 30 (6) is intended for financial clients and Article 25 for retail clients deposits.
Example: A retail customer has a deposit of EUR 200 in cash on his or her account. The customer opens a derivative position that gives rise to a collateral pledge requirement of EUR 40 (initial margin) from the Bank. The client thereby has an unpledged deposit of EUR 160, and a pledged deposit of EUR 40.
Should the unpledged part of the deposit (EUR 160) be treated according to article 25 (outflow 10-20% depending on criteria in article 25(2-3)), or alternatively according to article 30(6) - (100% outflow)? - Submission date
- Final publishing date
-
- Final answer
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The portion of a retail deposit which has been received by a credit institution as collateral for broker services shall be subject to Article 30 (6) of the Delegated Regulation (EU) 2015/61 where applicable. The rest of the amount of the retail deposit, that are not used as collateral for broker services, shall follow the treatment envisaged in Articles 24 and 25 of the Delegated Regulation (EU) 2015/61.
- Status
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Final Q&A
- Answer prepared by
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Answer prepared by the EBA.
- Note to Q&A
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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
The Q&A refers to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.