Question ID
2019_4549
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Supervisory reporting - Liquidity (LCR, NSFR, AMM)
Article
415
Paragraph
3
Subparagraph
b
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
Article/Paragraph
Annex XVIII - Annex XXIII
Name of institution / submitter
European Central Bank
Country of incorporation / residence
Germany
Type of submitter
Competent authority
Subject matter
Classification of multilateral development banks (MDBs) for the purpose of the reporting of the Additional Liquidity Monitoring Metrics (ALMM)
Question

For the purpose of the reporting of the ALMM, are MDBs to be considered as financial counterparties, non-financial corporate counterparties or other counterparties?

Background on the question

MDBs are not explicitly referred to in the Regulation (EU) No 680/2014 (as amended by Regulation (EU) 2017/2114) as regards the ALMM.

Submission date
Final publishing date
Final answer

The instructions on C 67.00 and C 71.00 prescribe that FINREP economic sector classes should be followed in the determination of the issuer classification. On this point, FINREP instructions (paragraph 42(c), Annex V, Part 1) explicitly state that multilateral development banks (MDBs) should be classified as “Credit institutions”.

In contrast, the instructions on C 66.00, C 68.00, C 69.00, C 70.00 do not refer to FINREP economic sector classes. Accordingly, the categorization of MDBs should be aligned with the specifications used for the calculation of the Liquidity Coverage Ratio (LCR) laid down in the Delegated Regulation (EU) 2015/61 (LCR DR). Under the latter, MDBs are treated as non-financial wholesale customers. Correspondingly, for the purpose of the reporting of the ALMM templates C 66.00, C 68.00, C 69.00 and C 70.00, entities that qualify as MDBs under the LCR DR, should be considered as non-financial wholesale customers.

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

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