EBA · 2018_4412 Rejected question

Counterparty of deposits taken from a fiduciary bank

Name: Counterparty of deposits taken from a fiduciary bank: EBA Q&A — EU Financial Regulatory Q&A
Creator: European Banking Authority
License: https://creativecommons.org/licenses/by/4.0/

Regulation: Regulation (EU) No 575/2013 (CRR)
Article: 411, para. 2
Topic: Liquidity risk
Submitted by: Credit institution
Submitted: 2018-12-07

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Question

Do fiduciary deposits that are taken from a fiduciary bank for risk and reward of an underlying retail client qualify as retail deposits as defined in article 3 of the Delegated Regulation 2015/61?

Background

Fiduciary deposits are deposits taken from fiduciary banks for the risk and reward of a retail customer. The retail customer itself is unknown to deposit taker, however in case of a default of the fiduciary bank the retail customer is entitled to the funds on the deposit. The question is whether such fiduciary deposits can be seen as retail deposits. The answer is relevant because the type of counterparty determines the relevant articles to determine the correct outflow percentage that has to be used for the calculation of the liquidity coverage ratio.

No answer published yet.

Original source: European Banking Authority, Q&A ID 2018_4412

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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