EBA · 2014_1446 Archive

Treatment of central banks as non-financial customers or financial customers

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
422, para. 5
Topic
Liquidity risk
Submitted by
Industry association
Submitted
2014-08-28
Answer provided by
ESAs (EBA, ESMA, EIOPA)
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Question

If an institution has unsecured deposits from a central bank, are those deposits from financial customers or deposits from non-financial customers?

Background

Article 422(5) of Regulation (EU) No 575/2013 (CRR) states, that deposits from non-financial customers that do not fulfil the criteria of paragraphs 3 and 4 should be treated with a 40% outflow rate. However there is no definition, what a non-financial customer is. It is clear, that non-financial corporations are included here and that banks and financial corporations are not included. But it is unclear if a central bank is treated like a bank (meaning it is a financial customer) or like a government (meaning it is a non-financial customer).

Answer

In the absence of a specific treatment for reporting outflows on unsecured deposits from central banks under Regulation (EU) No 575/2013 (CRR), and without prejudice to further guidance which may be issued under the Delegated Act in accordance with Article 460, the treatment applied to deposits by non-financial customers under Article 422(5) should also be applied to unsecured deposits from central banks.

Original source: European Banking Authority, Q&A ID 2014_1446

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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