Single Rulebook Q&A

Question ID: 2017_3128
Legal act : Regulation (EU) No 575/2013 (CRR) as amended
Topic : Liquidity risk
Article: 421
Article/Paragraph : 24, 25
COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
Name of institution / submitter: National Bank of Romania
Country of incorporation / residence: Romania
Type of submitter: Competent authority
Subject matter : Treatment of interest outflows for retail deposits

Should interest be reported - together with the deposit amount and be subject to the treatment provided by Articles 24/25 or - separately and be subject to the treatment provided by Article 31(10) (any other outflows)?

Background on the question:

It is not clear if the interest is subject to the same outflow rate as retail deposits according to Articles 24/25 or subject to 100% outflow rate according to Article31(10).
Articles 24/25 and the ITS on Supervisory Reporting do not provide any specific provisions regarding interest outflows. For interest inflows, the ITS on Supervisory Reporting provides instructions regarding these cash flows, and the interest inflows are subject to 100% inflow rate. According to point 141 from Basel standard, other contractual cash outflows (subject to 100% outflow rate) include contractual interest payments.

Date of submission: 26/01/2017
Published as Final Q&A: 28/07/2017
EBA answer:

The interest of retail deposits should follow the treatment of relevant retail deposits, set out in Articles 24 and 25 of Delegated Regulation (EU) 2015/61, as long as they are credited on retail accounts.

Status: Final Q&A
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