EBA · 2014_802 Rejected question

Transfer Restrictions

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
417, para. b
Topic
Liquidity risk
Submitted by
Credit institution
Submitted
2014-02-03
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Question

With regards to transfer restrictions on liquid assets held in third countries Article 417 (b) specifically refers only to liquid assets reported under Article 416 (1)(c) only and not those reported under Articles 416 (1a), (1b) or (1d)? It would appear that transfer restriction are not considered for assets reported under 416(1)(a), (1)(b) or (1)(d).

Background

'They are legally and practically readily available at any time during the next 30 days to be liquidated via outright sale or via a simple repurchase agreement on approved repurchase markets in order to meet obligations coming due. Liquid assets referred to in point (c) of Article 416(1) which are held in third countries where there are transfer restrictions or which are denominated in non-convertible currencies shall be considered available only to the extent that they correspond to outflows in the third country or currency in question, unless the institution can demonstrate to the competent authorities that it has appropriately hedged the ensuing currency risk'
No answer published yet.

Original source: European Banking Authority, Q&A ID 2014_802

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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