Question ID
2024_7235
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Own funds
Article
36
Paragraph
5
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
n.a.
Name of institution / submitter
Finansinspektionen
Country of incorporation / residence
Sweden
Type of submitter
Competent authority
Subject matter
Classification as a “specialised debt restructurer” pursuant to Article 36 (5) of Regulation No 575/2013
Question

To be classified as "specialised debt restructurer" (SDR), the institution’s sight deposits must not exceed 5% of the institution’s total liabilities.

Within the context of the regulation, what is the appropriate interpretation of sight deposits when assessing if they meet the conditions from Article 36 (5) (f) of the Regulation (EU) No 575/2013? 

Background on the question

We are seeking guidance and insights on how sight deposits should be interpreted in accordance with Article 36 (5) (f) regardless of the definition of sight deposits for the purpose of EBA supervisory reporting where sight deposits should be assumed to mature overnight (According to Q&A 1901).

Our interpretation is that the purpose of the paragraph is that a credit institution classified as a "specialised debt restructurer" should not be overly reliant on sight deposits as a source of funding. From this perspective, when classifying sight deposits in accordance with the paragraph, the critical aspect should not hinge on whether a deposit withdrawal is available to the customer overnight or after a couple business days. 

A homogeneous interpretation of sight deposits in this context is crucial as it could allow institutions to exploit the provisions of Article 36 (5) (f) by making minor adjustments to their terms and conditions for deposit withdrawals to comply with the requirements and thereby undermining the purpose of the paragraph.

Submission date
Rejected publishing date
Rationale for rejection

This question has been rejected because the issue it deals with is already explained or addressed in the regulatory framework. In particular, please see Article 36 of of Regulation 575/2013 (CRR). 

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.

For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”.

Status
Rejected question