EBA · 2021_6297 Rejected question

LCR treatment of coins and banknotes stored in a centralized vault owned and operated by an external service provider

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
460, para. 1
Topic
Liquidity risk
Submitted by
Competent authority
Submitted
2021-11-27
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Question

What is the LCR treatment of coins and banknotes that are stored in a centralized vault owned and operated by an external service provider?

Background

Competent authorities have been made aware that credit institutions have started storing larger amounts of coins and banknotes in centralized vaults, with the latter being owned and operated by external service providers. Such coins and banknotes remain the sole property of the credit institutions and are physically stored separately from other items in the vault. It is understood that the credit institutions have the right to access and withdraw the coins and banknotes from the vaults at any point in time. The full amount of coins and banknotes could physically be made available to the credit institutions in around three working days.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2021_6297

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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