Outflows from operational deposits

As per Article 27(1)(a) in conjunction with paragraph (4) of the Commission Delegated Regulation (EU) No 2015/61 of 10 October 2014 to supplement Regulation (EU) 575/2013 of the European Parliament and the Council with regard to liquidity coverage requirement for credit institutions (hereafter "LCR Delegated Regulation"), a 25% outflow rate shall apply to deposits maintained by depositors in order to obtain clearing, custody, cash management or other comparable services in the context of an established operational relationship which is critically important to the depositor. These deposits shall have significant legal or operational limitations that make significant withdrawals within 30 calendar days highly unlikely. The portion of these deposits covered by a deposit guarantee scheme in accordance with Directive 94/19/EC or Directive 2014/49/EU or an equivalent deposit guarantee scheme in a third country shall be subject to a 5% outflow rate as set out in Article 27(2) LCR Delegated Regulation. Fund in excess of those required for the provision of operational services shall be treated as non-operational deposits. Deposits maintained by the depositor to obtain clearing services that fulfil all of these conditions shall then be subject to a 25% or 5% outflow rate, even if they are hold on correspondent banking accounts (only deposits that arise out of a correspondent banking relationship shall be subject to a 100% outflow rate in application of Article 27(5) of the LCR Delegated Regulation). If they do not respect these conditions, they are considered as non-operational deposits and the outflow rate shall be 100%. Disclaimer: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Financial Stability, Financial services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.