EBA · 2020_5075 Rejected question

LCR treatment of liquidity inflows stemming from factoring

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
425
Topic
Liquidity risk
Submitted by
Competent authority
Submitted
2020-01-07
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Question

What is the LCR treatment of liquidity inflows stemming from factoring business?

Background

Liquidity inflows from factoring business are not explicitly referred to in Article 32 of Delegated Regulation (EU) 2015/61 as amended by Delegated Regulation (EU) 2018/1620. It needs to be clarified whether such inflows could be treated as inflows from trade finance transactions referred to in Article 32(2)(b) of the same Regulation or whether they would need to be treated differently.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2020_5075

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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