Article 416 - Reporting on liquid assets

Provided the additional requirements of Article 416(3) and Article 417 of Regulation (EU) No 575/2013 (CRR) are met, in addition to the assets reported in accordance with Article 416(2)(a)(i) and (ii), assets that are issued by credit institutions shall be reported as liquid assets if they fulfil one of the following conditions: (i) the credit institution has been set up by a Member State central or regional government and that government has an obligation to protect the economic basis of the institution and maintain its viability throughout its lifetime; or (ii) the asset is explicitly guaranteed by that government (that is central or regional government)... ; or (iii) at least 90% of the loans granted by the institution are directly or indirectly guaranteed by that government  and that asset is predominantly used to fund promotional loans granted on a non-competitive, not for profit basis in order to promote that government’s public policy objectives. In accordance with Article 416(2)(c), assets issued by an investment firm, insurance undertaking or other entities covered by this provision shall not be considered liquid assets.