EBA · 2013_136 Final Q&A

Transfer Restrictions

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
417, para. b
Topic
Liquidity risk
Submitted by
Credit institution
Submitted
2013-08-07
Answered
2013-11-29
Answer provided by
ESAs (EBA, ESMA, EIOPA)
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Question

There is no definition within the Regulation of 'Transfer Restrictions' referred to in article 417(b) with regards to excess liquid assets in third countries

Background

Transfer restrictions could include existing large exposure limits, but by definition these are assumed to be 'relaxed' by European national authorities, so existing large exposure limits applicable to third countries could also not be seen as 'transfer restrictions'.

Answer

For the purposes of Article 417(b) of Regulation (EU) No 575/2013 (CRR), transfer restrictions are existing restrictions imposed under applicable laws, regulations and supervisory requirements. Accordingly, it would be appropriate for institutions to have processes in place to capture all third country liquidity transfer restrictions to the extent practicable, and to monitor the rules and regulations in the third country jurisdictions in which the group operates and assess their liquidity implications for the group as a whole.

Original source: European Banking Authority, Q&A ID 2013_136

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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