Question ID
2014_1062
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Liquidity risk
Article
411
Paragraph
2
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
Not applicable
Type of submitter
Credit institution
Subject matter
Retail Depoists - EUR1 million limit
Question

With reference to the definition of "Retail Deposits", does the EUR1 million limit apply to 'natural persons'? Or does it solely apply to SMEs and companies eligible for the treatments set out in Article 153(4) of Regulation (EU) No 575/2013 (CRR)?

Background on the question

This is the wording found in Article 411 (2): “'retail deposit' means a liability to a natural person or to an SME, where the natural person or the SME would qualify for the retail exposure class under the Standardised or IRB approaches for credit risk, or a liability to a company which is eligible for the treatment set out in Article 153(4)2 and where the aggregate deposits by all such enterprises on a group basis do not exceed EUR 1 million.”

Submission date
Final publishing date
Final answer

Article 411(2) of Regulation (EU) No 575/2013 is to be interpreted such that the ceiling on aggregate deposits mentioned therein does not apply to natural persons.

 

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This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Internal Market and Services) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.

Status
Final Q&A
Answer prepared by
Answer prepared by the European Commission because it is a matter of interpretation of Union law.
Note to Q&A

Update 26.03.2021: This Q&A has not yet been reviewed by the European Commission in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR).

Disclaimer

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