Question ID
2025_7530
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Supervisory reporting - Liquidity (LCR, NSFR, AMM)
Article
422
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
Article/Paragraph
31bis
Type of submitter
Credit institution
Subject matter
LCR treatment of cashier’s cheques
Question

What should be the correct LCR representation of a cashier’s cheque in terms of outflow rate and ITS category according to the C73 template? Is it appropriate to consider the amount net of the collateral posted?

Background on the question

There is no specific legal provision about the treatment of the cashier’s cheques. A cashier’s cheque represents a credit instrument issued by the bank whereby the holder or beneficiary can collect the amount indicated. Since a cashier’s cheque is used to guarantee that funds are available for payment, the bank charges the amount to the client’s account when the cheque is issued. As a consequence, the LCR includes the impact of the cheque issues in terms of a decrease of clients’ deposits. Moreover, the bank pledges liquid securities as collateral to guarantee the amount of cheques issued (minimum 20%), thus generating a decrease of the available liquid assets. 

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, which is sufficiently clear and unambiguous.

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Status
Rejected question