Question ID:
2020_5075
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Topic:
Liquidity risk
Article:
425
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
Article/Paragraph:
32
Disclose name of institution / entity:
Yes
Name of institution / submitter:
European Central Bank
Country of incorporation / residence:
Germany
Type of submitter:
Competent authority
Subject Matter:
LCR treatment of liquidity inflows stemming from factoring
Question:

What is the LCR treatment of liquidity inflows stemming from factoring business?

Background on the question:

Liquidity inflows from factoring business are not explicitly referred to in Article 32 of Delegated Regulation (EU) 2015/61 as amended by Delegated Regulation (EU) 2018/1620. It needs to be clarified whether such inflows could be treated as inflows from trade finance transactions referred to in Article 32(2)(b) of the same Regulation or whether they would need to be treated differently.

Date of submission:
07/01/2020
Status:
Question under review
Answer prepared by:
Answer prepared by the EBA.
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