Derivatives reporting in stable funding

Referring to the instructions (Annex XIII, Part 5: Stable Funding of the Regulation (EU) No 680/2014 13 ITS on supervisory reporting of institutionsDraft ITS on Supervisory reporting), paragraph 1.1.2 states that the total amount of all own funds and liabilities reported on an institution's balance sheet shall reflect the size of the institution's total assets. At the same time, paragraph 2.1.2 stresses that the total amount of assets shall reflect the size of total own funds and liabilities together. Without prejudice of the provision under Article 521(2)(b) of Regulation (EU) No. 575/2013 (CRR) according to which institution shall apply Article 413(1) from 1st January 2016, the objective of reporting on stable funding is to monitor both total Required Stable Funding (RSF) and total Available Stable Funding (ASF). The treatment of derivatives payables and receivables under paragraph 2.1.6 refers clearly to balance sheet items ( "An institution will usually have both net derivatives liabilities (i.e. payables) and net derivative assets (i.e. receivables) on its balance sheet "). Off-balance sheet items are not to be taken into account in the reporting templates C 60.00 and C 61.00. All net derivative positions should be calculated according to regulatory netting rules, not accounting rules. Consequently the divergence of total RSF and total ASF could be based predominantly on the difference in regulatory netting rules and accounting rules. It should be acceptable for total RSF to diverge slightly from total ASF.   *As of 1/8/2014 the content of this answer was modified to reflect the publication of the final ITS on supervisory reporting of institutions in the Official Journal of the European Union. As a result, the references to the ITS were updated and the disclaimer deleted. For reasons of transparency, revisions are highlighted in track changes.