2021_6085 ASF applicable to payables (accruals) in the NSFR

Question ID:

2021_6085

Legal Act:

Regulation (EU) No 575/2013 (CRR)

Topic:

Liquidity risk

Article:

428j, 428k, 428l, 428o

Subparagraph:

COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:

Not applicable

Article/Paragraph:

Disclose name of institution / entity:

Type of submitter:

Competent authority

Subject Matter:

ASF applicable to payables (accruals) in the NSFR

Question:

What should be the available stable funding factor applicable to payables (accruals)?

Background on the question:

Accounts payable (AP) is an account on the liability side of the institutions’ balance sheets that represents obligations to pay off (usually) short-term debt to its suppliers.

While some debts to suppliers have a fixed calendar window to pay off the amount due, others may set only a maximum calendar days/months to be paid.

Date of submission:

13/07/2021

Published as Final Q&A:

30/09/2022

Final Answer:

If the short-term obligation has a stated maturity, the institution should apply Articles 428k and 428l from Regulation (EU) 575/2013 as amended (CRR), based on the counterparty and the maturity. In this specific case, which refers to liability to suppliers (i.e., non-banking activity), paragraph 3, points (d) and (d) of the cited provisions respectively apply.

If the obligation has no stated maturity, a 0% ASF factor applies, conform to Article 428k(1) CRR.

Status:

Final Q&A

Answer prepared by:

Answer prepared by the EBA.