Outflows on other liabilities for Operational Accounts (Basel para 93 -104)

According to Article 422(4) of Regulation (EU) No. 575/2013 (CRR), clearing, custody or cash management activities do not include correspondent banking or prime brokerage services alone. Only those activities of correspondent banking or prime brokerage that comprise clearing, custody or cash management may be eligible as operational deposits. Other comparable services shall be eligible for the 5% or 25% run-off as appropriate, provided there is evidence that the client is unable to withdraw amounts legally due over a 30 day horizon without compromising its operational functioning (i.e. the institution should be aware that the customer does not have adequate back-up arrangements). These services shall be provided under a contractual agreement. Article 422(4) second subparagraph of the CRR states that, pending a uniform definition of an established operational relationship, institutions shall themselves establish the criteria to identify an established operational relationship for which they have evidence that the client is unable to draw amount legally due over 30 days without compromising its operational functioning. The institution shall report these criteria to the competent authority. In the absence of a uniform definition, competent authorities may provide general guidance. Please see also related question QA 2013_135 for further information. It should be noted that according to Article 509(2)(l) of the CRR, the EBA assessed the calibration of the outflow rate applicable to correspondent banking and prime brokerage services and came to the conclusion that the specific outflow rate on these types of deposits should not be recalibrated (from 100%) to 0%. The EBA report on this can be read here .