EBA · 2016_2688 Rejected question

bail in of interbank deposits with original maturity of less than seven days

Regulation
Directive 2014/59/EU (BRRD)
Article
44
Topic
Write-down and conversion of capital instruments
Submitted by
Credit institution
Submitted
2016-03-23
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Question

Could you please clarify if a 6 day deposit that has been rolled over multiple times could be considered to be of greater maturity than 6 days in the event of a bail in? In other words if there is a clause that stipulates the number of times a 6 day deposit can be rolled over before losing its status as a 6 day deposit and therefore losing its protection from a bail in?

Background

If we were to place a 6 day EUR money market deposit with another bank and were to roll it over multiple times would this affect its protection in the event of a bail in?
No answer published yet.

Original source: European Banking Authority, Q&A ID 2016_2688

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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