- Question ID
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2022_6338
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Liquidity risk
- Article
-
421
- Paragraph
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3
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
- Article/Paragraph
-
25 (2) (a)
- Type of submitter
-
Credit institution
- Subject matter
-
Aggregation of retail deposits for checking the criteria for "retail deposits subject to higher outflow rates"
- Question
-
If a natural person has an account at the bank as a natural person and, at the same time, he/she is an owner of a legal entity, which qualifies as an SME, and also has a separate business account at the same bank as a legal entity, shall the accounts of both the natural person and the legal entity aggregated when checking the total deposit balance against the threshold of EUR 500 000? If yes, what shall be the level of legal entity ownership (e.g. 100%, more than 50%, etc.) in order to combine the natural person and the legal entity?
- Background on the question
-
According to Article 25 paragraph 2 (a):
“2. Other retail deposits shall be subject to higher outflow rates, as determined by the credit institution, in accordance with paragraph 3, where the following conditions are met:
(a) the total deposit balance, including all the client's deposit accounts at that credit institution or group, exceeds EUR 500 000.”
A natural person customer, which has an account at the bank and stand-alone meets the criteria of "stable retail deposits", might own a SME legal entity, which has a separate business account at the same bank as a legal entity and which also qualifies for "stable retail deposits" on stand-alone basis. Nevertheless, if the accounts of the natural person and the SME are aggregated, the total balance might exceed the EUR 500 000 threshold.
- Submission date
- Rejected publishing date
-
- Rationale for rejection
-
This question has been rejected because it is considered that EBA guidance or clarification is not needed with regard to the issue that it raises. For example, this can be the case where it is considered that the existing regulatory framework is sufficiently clear and unambiguous, or where different practices may be possible but it is not currently necessary to harmonise these further through the Q&A process.
The Single Rule Book Q&A tool has been established to provide explanations and non-binding interpretations on questions relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2) of the EBA’s founding Regulation, as well as associated delegated and implementing acts, and guidelines and recommendations, adopted under these legislative acts.
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- Status
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Rejected question