Counterparties referred to in Article 428h (1) (c) CRR

Article 428h(1) of Regulation (EU) No 575/2013 (CRR) requires that all conditions specified in Article 428h(1) CRR are met. While the list of eligible counterparties referred to in Article 428h(1)(a) CRR does not limit the application of this discretion to institutions, Article 428h(1)(c) CRR states that “the counterparty applies a required stable funding factor that is equal to or higher than the higher available stable funding factor or applies an available stable funding factor that is equal to or lower than the lower required stable funding factor”. A counterparty that is not subject to the net stable funding requirement as referred to in Article 413(1) CRR and further specified in Title IV of Part Six of the CRR cannot fulfill the requirement of Article 428h(1)(c) CRR. Hence, since the NSFR only applies to institutions, and, at consolidated level, to the entities referred to in Article 11(2) CRR, only these entities are effectively in the scope of counterparties referred to in Article 428h(1)(a) CRR, and the discretion more generally.