Question ID
2017_3128
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Liquidity risk
Article
421
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
Article/Paragraph
24, 25
Name of institution / submitter
National Bank of Romania
Country of incorporation / residence
Romania
Type of submitter
Competent authority
Subject matter
Treatment of interest outflows for retail deposits
Question

Should interest be reported - together with the deposit amount and be subject to the treatment provided by Articles 24/25 or - separately and be subject to the treatment provided by Article 31(10) a(1)  (any other outflows)?

 

Background on the question

It is not clear if the interest is subject to the same outflow rate as retail deposits according to Articles 24/25 or subject to 100% outflow rate according to Article31(10).
Articles 24/25 and the ITS on Supervisory Reporting do not provide any specific provisions regarding interest outflows. For interest inflows, the ITS on Supervisory Reporting provides instructions regarding these cash flows, and the interest inflows are subject to 100% inflow rate. According to point 141 from Basel standard, other contractual cash outflows (subject to 100% outflow rate) include contractual interest payments.

Submission date
Final publishing date
Final answer

The interest of retail deposits should follow the treatment of relevant retail deposits, set out in Articles 24 and 25 of Delegated Regulation (EU) 2015/61, as long as they are credited on retail accounts.

Status
Final Q&A
Answer prepared by
Answer prepared by the EBA.
Note to Q&A

Update 26.03.2021: This Q&A has been updated in the light of the changes introduced to Commission Delegated Regulation (EU) No 2015/61.

Disclaimer

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