Classification as a “specialised debt restructurer” pursuant to Article 36 (5) of Regulation No 575/2013

To be classified as "specialised debt restructurer" (SDR), the institution’s sight deposits must not exceed 5% of the institution’s total liabilities. Within the context of the regulation, what is the appropriate interpretation of sight deposits when assessing if they meet the conditions from Article 36 (5) (f) of the Regulation (EU) No 575/2013?

We are seeking guidance and insights on how sight deposits should be interpreted in accordance with Article 36 (5) (f) regardless of the definition of sight deposits for the purpose of EBA supervisory reporting where sight deposits should be assumed to mature overnight (According to  Q&A 1901 ). Our interpretation is that the purpose of the paragraph is that a credit institution classified as a "specialised debt restructurer" should not be overly reliant on sight deposits as a source of funding. From this perspective, when classifying sight deposits in accordance with the paragraph, the critical aspect should not hinge on whether a deposit withdrawal is available to the customer overnight or after a couple business days.  A homogeneous interpretation of sight deposits in this context is crucial as it could allow institutions to exploit the provisions of Article 36 (5) (f) by making minor adjustments to their terms and conditions for deposit withdrawals to comply with the requirements and thereby undermining the purpose of the paragraph.